1. The MCQuaig RepoRT
VoluMe 3
Just how effeCtive is pre-emploYment testing?
You Can inCrease Approximately 40-50% of North American companies use some form of pre-employment testing.
the effeCtiveness of Larger companies are more likely to use a pre-employment test than smaller ones and according
to The HR Scorecard: Linking People, Strategy and Performance (Harvard Business School Press), top
personalitY–based
performing companies are four times more likely to use these tests than poor performing companies.
assessments more
than 200% bY using But just how effective is pre-employment testing – more specifically, how effective are personality
them properlY: based assessments? And what can companies do to increase the effectiveness of these tests?
Exploratory Approach: improving effeCtiveness threefold: the evidenCe
PPC* = .12
A study out of the University of Waterloo, Personality Predictors as a Measure of Job Performance,
Confirmatory Approach: provides a meta-analysis of 13,521 job applicants covered in 494 studies who were assessed
PPC = .29 using personality-based assessments.
Integrated Job Analysis Approach: A key finding showed that the way the instrument was used made a huge difference in its
PPC = .38 ability to predict performance. Here is a summary of the findings:
* Performance Prediction Correlation
1. If the personality measure was used in an “exploratory” way – for example, you assess the
candidate’s personality to better understand him or her – the validity coefficient was .12,
about as effective as an unstructured interview.
2. If the personality measure was used in a “confirmatory” way– for example, you believe that your
sales people should be persistent, you find an assessment that measures persistence and hire
candidates who are persistent – the validity coefficient jumps .29, more than twice as effective.
3. If the personality measure included a job analysis tool that objectively determined the
personality measures deemed for success, the validity coefficient increased significantly again
to .38, a level that is considered very respectable by most professionals.
Keep in mind that these studies measure the personality assessment in a vacuum and not
combined with other methods, such as behavioural interviewing.
the bottom line
From our experience we know that a significant portion of the 40-50% of companies using
assessments use them in an exploratory way and as a result, reap only a portion of the benefits.
Why do they skip the job analysis process at the front end? Lack of time is the most common
response. In the end they spend a much greater amount of time dealing with performance
issues and rehiring for the position.
The McQuaig Institute®
If you would like to review a case study of an organization that successfully integrated job analysis
Phone: 416-941-9418 into their assessment process with a measurable impact on retention and employee satisfaction,
Toll Free: 1 800 387-5455 please call Michelle Kalra at 800-387-5455, ext.362 and ask for the AEGON case study. You can
www.mcquaig.com request an electronic copy by emailing mkalra@mcquaig.com.
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