Reasons Hiring Managers Fear Pre-employment Tests

Like many fears, the FEAR that hiring managers have about using pre-employment tests is nothing more than False Experiences Appearing Real. In this column I respond to the top 10 fears I consistently hear from HR managers, executives and business owners. A few of the fears are real. Some are merely exaggerations. And others – they are simply not true. Beginning with number 10:

10. We don’t have a budget for testing. Fortunately the ROI on pre-employment tests is many-fold when you consider the cost of a bad hire, estimated to be 1 to 2 times annual salary for lower-wage employees and upwards of 10 times annual salary for managers, professionals and executive. In low-wage, high turnover industries like hospitality, studies indicate it costs roughly 300 to 700 times an hourly worker’s rate each time you have to fire and replace them when you take the effect of a bad hire on a guest’s first experience. Ranging in costs from as little as $25 for screening tools to several hundred for job fit assessments, the cost of the pre-employment tests will be a fraction of the cost spent on trying to save a bad hire. Pre-employment tests are an investment in productivity and innovation, not an HR line item.

9. I read my report and don’t agree with what it says about me. Face validity is very important. That means when you read the report it describes your to a “t.” But face validity isn’t a very good predictor of job fit. If it was every candidate who says he’d be a great fit would become your next super-performer. Tools like DISC and Myers-Briggs have very strong face validity but other psychometric tools that are normed against the population and used for job fit and potential are more sophisticated. Selection tests measure innate personality traits, or your core personality. With experience and training, you may have learned new skills that cover up potential shortcomings. That’s why it is very important to use both the pre-employment test and interview to discover the natural fit, learned fit, and potential for growth. If you don’t agree with a result, just ask your consultant for an interpretation. I can count on one hand how many times a candidate or employee doesn’t agree after they understand how to use the results properly.

8. We’re just a small business. We’re not sure why many managers feel they shouldn’t have the same tools at their fingertips as large companies. Online technology has leveled the playing field. Now small business owners as well as mid-managers have the same tools as senior level executives at Fortune 50 companies. And the best news is that technology has lowered the cost to a level affordable to any size business in any industry.

7. We don’t have the time to get certified. Online hiring assessments make this an easy one to overcome. Certifications and training are not required for most programs. Our reports are written so that even the most inexperienced manager can understand the results. And to make the report even more manager-friendly, all our pre-employment tests come with personalized behavior interview question guides based on responses given by the candidates. We can’t make it any easier. (Of course, for any managers wanting to become more skilled at reading the reports, we are always happy to oblige – and many managers take us up on the offer!)

6. It takes too long to get the results. This is the easiest fear to overcome. Results can be real-time. We can set up a client account at no cost to the business, many times at no charge. Reports can then be accessed in real time. In other words, as soon as a candidate hits the submit button, a manager can log into the system and retrieve the report. Unlike many of our competitors who require a 2 or 3 day (or more) delay in receiving results and then even longer to speak with a consultant, we are available when you need us the most. In today’s job market, when you have the good candidate waiting for a job offer, you can ill afford any delays.

5. We don’t want to upset the candidates. Our clients gave us the answer to this fear. “If a candidate balks at completing our hiring process and this is the time when he is supposed to be on his best behavior, what will happen the first time we ask him to do something he doesn’t think is part of his job?” It’s important to look at the assessment as equal to the interview and background checks. That’s how the EEOC looks at pre-employment testing. Resumes, application, interviews and even general observations are all on equal footing. If a candidate refused to submit his resume or give permission to check references, you certainly wouldn’t forego these steps. The pre-employment test is just another part of the employee selection process. So what more can I add except that when a candidate refuses to complete an assessment, it won’t cost you a dime for the assessment but think about the thousands of dollars and hours of aggravation you’ll save if you had hired him!

4. We heard candidates can fake the tests. Again, this fear is real – and true. Just like during the interview, people are more and more skilled at playing a role that can’t be delivered after they are hired. The advantage of our pre-employment tests is that each assessment has a “fake-ability” scale. Questions embedded in the assessments help managers assess how reliable the information is and if the candidate attempted to manipulate his responses. Unless you are a highly skilled interviewer, gut instinct is the only tool you have to determine if a candidate is the real thing.

3. We spoke with our attorney and he said stay away from testing. Another variation of this fear is: I heard that companies have gotten sued because a test was used. It is true that organizations that have used tests have been sued. But it’s also true that more businesses have been sued because they didn’t. Every hiring decision carries a risk. But you need to know the facts. The EEOC in 2007 heard 77,000 discrimination complaints. Of those 77,000 only 304 involved assessments. And of those 304 the decisions that ruled in favor of the employee were related to the improper use of the assessment, not the validity of the assessment itself. As long as the test is valid, reliable, non-discriminatory AND job-related, the use of pre-employment tests is a best practice that meets EEOC guidelines. If your attorney can’t substantiate why he/she believes pre-employment tests should be avoided with anything more than it’s his/her opinion, get a second opinion. We will be happy to refer you to employment law attorneys who support the use of employee testing as a best practice and view the decision to use testing as good business practice.

2. We can’t afford to turn away good candidates. The time is long-gone when you can afford to hire employees who can barely fog a mirror. For the same reason you wouldn’t accept an order from a vendor with the wrong parts, why would you hire an employee that doesn’t have the right skills or fit in your culture? But the big benefit for using assessments is that organizations actually expand their talent pool. Yes, you read that correctly. You can expand, not shrink, your talent pool with assessments. How is that possible? For the very same reason that managers make hiring mistakes based on the interview alone, they also miss high-potential candidates because they might interview poorly but have all the skills and attitude you need, if not more. Pre-employment tests can help find the diamonds in the rough. You can ill-afford to turn away a gifted employee when he presents. And let’s have a drum roll please. The number one reason why managers fear pre-employment tests is:

1. We don’t have the time to test candidates. It’s true. It does take time to test candidates (but not as much as you think). The irrefutable data however confirms the time it takes to test a candidate is a drop in the bucket compared to the time you will spend training, counseling and eventually terminating the wrong hire. With online hiring assessments, most of the time invested in the process is candidate time. All a manager needs to do is send out the instructions to the candidate and process the report. That’s it. And for businesses too short-staffed to manage even the administration of these functions, we can do all the “grunt” work. All we need is a name and email – and voila! The next time you hear from us you’ll have the candidate’s completed report sitting in your inbox. The time saved using online hiring assessments will be much better used recruiting for hard-to-fill positions and retaining the employees you have.

Copyright (c) 2009 Success Performance Solutions

Employment Litigation Lawyer

Are you a small business owner that is facing an employment-related litigation filing from a current or former employee? Due to a downturn in the economy and stricter government enforcement, discrimination and wage hour violations are becoming more common for businesses. Save yourself from the potential fines,penalties, and judgments and speak with an employment litigation attorney for advice on the best methods of handling these situations. Through a customized approach, proper counsel can assist you with an individualized strategy specific to your business objective.

The wage and hour violations often stem from incorrect employee misclassification.Is an employee exempt or non-exempt? Just because someone is on salary does not make them exempt. Similarly, the definition of an independent contractor is established by statute and court cases, and cannot be altered by an employer.

Some common examples of California Wage hour violations include:
Unpaid straight-time wages: If you ask y9our employees to work off the clock, your business can face severe penalties in addition to unpaid wages.
Unpaid overtime wages: If the a non-exempt employee works over 8 hours in a day OR over 40 hours in a week, your company is compelled to pay time and a half for excess time.

Independent Contactor Status: Employers frequently misclassify workers as independent contractors, and face penalties that could put them out of business.
Some examples of Employment Discrimination include:

Excluding potential employees during recruitment due to their background/demographics
Denying compensation and/or benefits to certain employees.
Unequal pay for equally-qualified employees in the same position.
Non uniformity in disability leave, maternity leave, or retirement options

Employers are also required to inform their employees about their EEOC and DFEH rights,and must not retaliate if they do file a discriminatory complaint.
When looking for an attorney that best suits your needs, it is important that they are offering the most practical and cost-effective solution to the dispute you may be involved in. An experienced attorney will be able to properly asses the risks you are facing and propose the best litigation options well before trial.Even while you are facing a legal case, as a business owner, there are other matters that need to be focused on to keep your business properly functioning.With the help of an employment litigation lawyer, you can be sure that the best approach to your case is being taken so that you can concentrate on the other important aspects in running your business.

The main goal for any business attorney is to effectively manage the strategy they will employ for the case, as well as achieve the desired goal that the business owner is aiming for. In some cases, it may be appropriate to negotiate a settlement with the plaintiff, while in others, it may be necessary to vigorously defend the business owner against the claims set forth by the employee. An expert attorney will have this strategy set out well in advance so that you, the business owner, are fully prepared on what to expect.

Going through a dispute with a current or past employee is something that no business owner wants to go through. Although it may be unavoidable in some instances,there are some preventative measures that you can take to ensure that you are following the best practices as set out by the labor board. First and foremost,having an employment handbook set in place is a necessity. However, having just any template handbook can still lead to problems. Having a business attorney custom draft your handbook specific to your business can make sure that all the policies you want to enforce are included. Enforcing an employee handbook is just the first step to avoiding legal troubles with an employee. For additional information about protecting your business from legal woes, contact an attorney at www.SmallBusinessLaw.Org.

The Importance Of Internal Investigation Documentation

Many believe that keeping records regarding workplace investigations leads to greater risk, because it becomes challenging to hide the fact that you were aware of an important issue that should have been given attention. The Labour and Employment Law Blog has worked to debunk many common workplace myths- one of them tackles the issue of documenting workplace issues.

In the post “Employment Laws Mistake #7 – Documenting Workplace Issues”, they state that “jurors, EEOC investigators, unemployment insurance judges and everyone in between, expect employers to keep good records and be able to produce them when there is an issue about the actions that were taken and the reasons for doing so.” Therefore, it won’t cut it if you try to avoid responsibility for your actions by simply not recording them.

The Importance of Record Keeping
There are a growing number of rules and regulations that businesses have to adhere to in order to demonstrate that sufficient action was taken regarding all workplace complaints. One of the easiest ways to create evidence to prove your case is to document all of the steps taken from the time an incident was reported to the conclusion and decision made after the completion of an investigation. The article “Documenting Employee Behavior and Performance” on HRHero.com states that:

“Documentation can be used as a key tool for legal defense. Good documentation by supervisors and managers can mean the difference between a company winning and losing an employment-related lawsuit. For example, good documentation of an employee’s pattern of poor performance and discipline can establish that the employee’s firing wasn’t related to discrimination based on race, sex, age, religion, disability, or national origin. An employer may have a much more difficult time proving that without such documentation.”

The above quote brings up a valuable question- can you afford not to take the time to document internal incidents and the rest of the investigation process? If taking the time to record incidents and information means the difference between winning or losing a case in court, wouldn’t it be easier to start documenting these matters now?

It’s important for business leaders to understand that problems will only escalate if you neglect to record incidents- the idea that you cannot be held liable simply because there’s no written record of an incident isn’t going to help you out. Documentation can also benefit your business should an employee lodge a complaint after they have been removed from your company. The longer it takes for an incident to be reported, chances are, your recall of events- when left up to memory, will likely lead to a poor account of the events and reasoning behind decisions made, which could make your statements invalid.

The post “Employment Laws Mistake #7 – Documenting Workplace Issues” states that “there are also a number of practical reasons to maintain proper documentation. While business organizations are dynamic and individuals may come and go- as well as their feelings toward an employer, the documents will always remain. Also, creating a written record helps to focus one’s attention and thinking and leads to better decision making.”

What to Record
In the article “Resolving Workplace Problems”, they reinforce the importance of documenting complaints, as well as providing a list of information that you will want to keep. “Set up a file and keep records of all relevant documents and correspondence. Records should include:

– Factual written summaries of incidents noting date, time, location, and persons involved.
– Memos and letters
– Relevant work documents
– Meeting notes
– Performance evaluations
– Any other relevant paperwork to document your workplace problem- investigation interviews, witness statements, etc.
– Keeping a paper trail is essential for providing needed evidence should legal action be needed down the road.” It’s impossible to have too much information regarding an incident- you would much rather be safe than sorry when it comes to legal matters.