Selection Assessment Methods - SHRM

1 SHRM FOUNDATION S EFFECTIVE PRACTICE GUIDELINESS electionAssessmentMethodsA guide to implementing formal assessments to build a high-quality workforceElaine D. PulakosElaine D. PulakosSHRM FOUNDATION S EFFECTIVE PRACTICE GUIDELINESS electionAssessmentMethodsA guide to implementing formal assessments to build a high-quality workforceThis publication is designed to provide accurate and authoritative information regarding the subject matter the publisher nor the author is engaged in rendering legal or other professional service. If legal advice or otherexpert assistance is required, the services of a competent, licensed professional should be sought. Any federal and statelaws discussed in this book are subject to frequent revision and interpretation by amendments or judicial revisions thatmay significantly affect employer or employee rights and obligations. Readers are encouraged to seek legal counselregarding specific policies and practices in their book is published by the SHRM Foundation, an affiliate of the Society for Human Resource Management(SHRM ).

2 The interpretations, conclusions and recommendations in this book are those of the author and do notnecessarily represent those of the SHRM Foundation. 2005 SHRM Foundation. All rights reserved. Printed in the United States of publication may not be reproduced, stored in a retrieval system or transmitted in whole or in part, in any formor by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permissionof the SHRM Foundation, 1800 Duke Street, Alexandria, VA SHRM Foundation is the 501 (c)3 nonprofit affiliate of the Society for Human Resource Management (SHRM).The SHRM Foundation advances the human resource profession and increases the effectiveness of HR professionalsthrough research, innovation and research-based knowledge. The Foundation is governed by a volunteer board ofdirectors, comprised of distinguished HR academic and practice leaders.

3 Contributions to the SHRM Foundation aretax-deductible. For more information, contact the SHRM Foundation at (703)535-6020. Online at .. vAcknowledgments .. viiAbout the Author .. ixEffective Practice Guidelines: Selection Assessment Methods .. 1 Job Analysis .. 3 Assessment Methods .. 5 Criteria for Selecting and Evaluating Assessment Methods .. 16 Additional Considerations .. 28 Summary and Conclusions .. 33 Sources and Suggested Readings.. 35iiiTable of ContentsThe SHRM Foundation Board of Directors appreciates how difficult it is for HR prac-titioners to access current research findings and incorporate them into their own HRpractices. Human resource professionals juggle multiple responsibilities and do not have time toread long research reports, no matter how beneficial. Realistically, most HR practitionerswill seek guidance from research findings only if they are presented in a clear, concise andusable make research more accessible, the SHRM Foundation created this series of reportstitled Effective Practice Guidelines.

4 The first report on performance management was pub-lished in 2004. The Foundation will publish new reports on different HR topics eachyear. You are now reading the second report in the series: Selection Assessment Methods . Here is the series concept: A subject matter expert with both research and practitionerexperience is selected to prepare the guidelines. The author distills the research findingsand expert opinion into specific advice on how to conduct effective HR practice. Toprovide a convenient reference tool, a substantial annotated bibliography is includedwith each report. We believe this new product presents relevant research-based knowl-edge in an easy-to-use format. We look forward to your feedback to let us know ifwe ve achieved that author is Dr. Elaine Pulakos, executive vice president and director of thePersonnel Decisions Research Institutes (PDRI) Washington, office.

5 Dr. Pulakosis one of the country s leading experts on Selection techniques, both as a researcher anda consultant, and she has provided the very best guidance available on this vision for the SHRM Foundation is: The SHRM Foundation maximizes theimpact of the HR profession on organizational decision-making and performance, bypromoting innovation, research and the use of research-based knowledge. We are confident that this new series of Effective Practice Guidelinestakes us one stepcloser to making that vision a reality. Herbert G. Heneman III, of Research, 2005 SHRM Foundation Board Professor, School of Business, University of Wisconsin-MadisonvFORWARDThe SHRM Foundation wishes to thank the following individuals for reviewing thisreport, providing feedback and helping to shape the finished product: Howard J. Klein, Associate Professor of Management & Human ResourcesFisher College of Business, Ohio State UniversityKathleen McComber, SPHR Sr.

6 Director of Human Resources and Org. DevelopmentUniversity of Arkansas for Medical Sciences William A. Schiemann, & CEO Metrus GroupPatrick M. Wright, DirectorCenter for Advanced Human Resource Studies (CAHRS)Cornell UniversityThe Foundation would also like to recognize the Society for Human ResourceManagement (SHRM) and the Human Resource Certification Institute (HRCI) fortheir generous support of SHRM Foundation research and educational Pulakos is executive vice president and director of theWashington, office of Personnel Decisions Research Institute(PDRI.) PDRI is a premier consulting firm in the field of indus-trial and organizational psychology. A recognized expert andresearcher in the areas of Selection and performance appraisal, has over 15 years of experience conducting large-scale jobanalysis, Selection , performance appraisal and career Fellow of the American Psychological Association (APA) and the Society forIndustrial and Organizational Psychology (SIOP), Dr.

7 Pulakos is a successful authorand has written on the topics of staffing and performance management. She is a pastpresident of SIOP. In addition to authoring numerous publications, Dr. Pulakosrecently co-edited two books: The Changing Nature of Performance: Implications forStaffing, Motivation, and Developmentwith Daniel Ilgen, and ImplementingOrganizational Interventions: Steps, Processes, and Best Practiceswith Jerry Hedge. Dr. Pulakos has spent her career conducting applied research in public and private sec-tor organizations, where she has designed, developed and successfully implementednumerous HR systems including staffing, performance management, and career devel-opment and training systems. Dr. Pulakos has also been extensively involved in provid-ing expert advice on EEO-related legal matters and serving as an expert witness andadvisor to the Department of Justice, among others.

8 Elaine received her inindustrial and organizational psychology from Michigan State the AuthorElaine D. Pulakos, compete fiercely in the war for talent. Many invest an enormous amountof money, time and other resources in advertising and recruiting strategies to attract thebest candidates. This is because today s executives understand that one of the mostimportant resources in organizations if not the most important is human resources. Yet, when it comes to actually assessing which job candidates are likely to performmost effectively and make the most significant contributions, a large number of organ-izations employ rudimentary and haphazard approaches to selecting their represents a serious disconnect for organizations that purport to have a strategicfocus on increasing their competitive advantage through effective talent disconnect stems from the fact that many organizations fail to use scientificallyproven assessments to make Selection decisions, even though such assessments havebeen shown to result in significant productivity increases, cost savings, decreases inattrition and other critical organizational outcomes that translate into literally millionsof dollars.

9 Thus, there are real and very substantial bottom-line financial results associ-ated with using effective assessments to guide Selection decisions. One reason why more organizations do not use rigorous assessments to select employ-ees is because many executives and HR professionals have misconceptions about thevalue of using them. Some of the most common misconceptions are presented below. 1 Effective Practice Guidelines: Selection Assessment MethodsCommon Misconceptions About Selection Tests1 Myth: Screening applicants for conscientiousness will yield better performers thanscreening applicants for intelligence. Myth: Screening applicants for their values will yield better performers thanscreening applicants for intelligence. Myth: Integrity tests are not useful because job candidates misrepresentthemselves on these types of tests. Myth: Unstructured interviews with candidates provide better information thanstructured Assessment processes.

10 Myth: Using Selection tests creates legal problems for organizations rather thanhelps solve , S. L., Colbert, A. E., & Brown, K. G. (2002). HR professionals beliefs about effective human resources practices:Correspondence between research and Resource Management, 41, reason why formal assessments are not used more in organizations is thatthere tends to be a lack of knowledge about the types of Assessment Methods thatresearch has shown to be most effective for identifying who will perform best on , coupled with the fact that the area of Selection testing is inherently technicaland difficult to understand, leads many organizational decision makers and HR profes-sionals to shy away from using formal assessments to guide their Selection decisions. A final reason why more organizations do not use effective assessments may be attrib-utable to the multitude of consulting firms selling different Selection products andtools.