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Mc Quaig Report Vol 3 Just How Effective Is Pre Employment Testing
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Mc Quaig Report Vol 3 Just How Effective Is Pre Employment Testing
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. ™/®Registered Trademarks of The McQuaig Institute of Executive Development Ltd. ©Copyright 2009 The McQuaig Institute® of Executive Development Ltd.