| The U.S Department
of Labor and Statistics indicates that half of
all new employees stay in their jobs for less
than six months. Some are promoted, but the majorities
quit or get fired. The cost of a new hire at the
$20,000 level is estimated to cost $40,000. These
costs include wasted salary, benefits, severance
pay, headhunter fees, training costs, hiring time,
and wasted business opportunities. Hiring mistakes
are costly and time consuming. One way to hedge
against the extraordinary costs of bad hires is
to use effective pre-employment testing. An article
in Fast Company magazine said “Whether building
a team or adding talent to an expanding company,
hiring decisions are among the most difficult
and important choices to make” (Fast Company
Hiring Employees, 2004).
Employment tests can be of several different
varieties, including trustworthiness or integrity
tests, skills-oriented tests and personality tests.
Each test can focus on one of these elements,
or may include several different components, testing
a variety of factors. Some of these tests are
Employee testing enables business owners to be
selective in finding and hiring the right person
for each position. Hiring mistakes are costly
and time consuming. One way to hedge against the
extraordinary costs of bad hires is to use effective
pre-employment testing.
Designing a testing program is fairly easy all
that is required for one to implement one is to
have the knowledge of why you want to hire an
employee. Having this knowledge helps in a great
deal. Any testing service provided by testing
agencies need that basic information. Testing
could be done in numerous ways. Given below are
some of the testing that one can implement in
an organization.
• Medical Test
• Drug Test
• Literacy Test
• Proficiency / Knowledge test
• Physical test
Job-related mental aptitude and personality tests
– do they have a place in business?
Mental aptitude tests examine a person’s
ability to handle problems and solve them. Not
an IQ test, the mental aptitude test is a test
of how quickly a person can integrate information
and make it useful. Because of the cost of pre-employment
testing, many companies use mental aptitude testing
for management and sales where job related tests
results combined with the interview and reference
checks can be a powerful tool in increasing your
odds in hiring the right person for the job. The
personality dimensions test examines job-related
characteristics like energy, flexibility, organization,
motivation, communication, level of assertion,
competitiveness and sensitivity. The cost for
a test: approximately $100, depending on quantity.
Hourly tests range from $10-$35, depending on
quantity.
As a result, you should only use tests that are
absolutely necessary, and unless the test is as
basic as a typing test, you should consider consulting
with a lawyer before administering the test to
make sure that it will pass legal muster in your
state.
Keeping in mind of the law that governs these
testing, one can implement them. These tests can
be carried out at the beginning that is at entry
level or even they could be used as an appraisal
which would test ones capability.
There are numerous restrictions on having these
test one of these is the ADA The Americans with
Disabilities Act (42 U.S.C. §§ 12101-12213)
The ADA prohibits employers from discriminating
against a person with a disability in any aspect
of employment, including applications, interviews,
testing, hiring, job assignments, evaluations,
disciplinary actions, training, promotion, medical
exams, layoffs, firing, compensation, leave and
benefits.
The ADA only applies to private employers with
15 or more employees, local governments and their
agencies, employment agencies and labor unions.
The ADA protects "qualified individuals with
disabilities." Many employers like to use
pre-employment tests as a way to screen out applicants
who are not suitable for the job. These tests
include skills tests, aptitude tests, psychological
tests, personality tests, honesty tests, medical
tests and drug tests.
Employment tests that are not prohibited by the
EPPA (Employee Polygraph Protection Act) are designed
to give the employer a legal way to gauge an employee’s
job-related skills and personality traits as an
alternative to the polygraph test.
Whereas the polygraph test is designed to monitor
an applicant’s physiological reaction to
certain questions, the employment tests seek to
gain information on the job candidate through
a series of questions designed to measure certain
job-related attributes.
There are many types of employee-testing products
and services available. Most employers start with
integrity and aptitude tests at entry-level positions,
and for higher-level positions, add skills tests,
sales skills tests, and personality tests to determine
job fit. The most elaborate form of testing includes
a battery of tests, interviews with a psychologist,
and simulations of real-life situations in the
work place. Some products enable the employer
to develop custom profiles of job positions based
on successful employees in that position. These
custom profiles enable the employer to quickly
determine job fit or match to the job description.
Pre-employment testing should help match the individual
to the job and help build teams. Not only does
pre-employment testing improve the odds in hiring
quality people but it improves your chances in
managing them effectively. Today, the use of employment
tests continues to increase.
There is no absolute guarantee on both sides
(employer and employee) that a new hire will work
out. It is a gamble. But with tools such as personal
assessments to help, you can increase your odds.
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