Unlock Workforce Potential
By Betty Hintch

Increasingly, employers are recognizing the importance of linking employee skills to the organization’s strategic goals. But that is easier said than done. Determining a starting point and identifying tools to measure and manage information are critical to the process.

“It is becoming more and more evident that the equation of running a profitable organization begins with adding the right people. So, it should be considered a great compliment to be invited to contribute to the hiring process. It is a serious responsibility and a great opportunity to make a significant contribution to the success of your organization, says John Valenti, principal, Kenexa, Wayne, Pa. However, you wouldn’t take that privilege and gamble your cost-per-hire on each candidate, but that is exactly what happens when employees are not screened,” says Valenti.

The Hiring Scenario
As companies continue to seek profits by reducing staff numbers, each decision made carries a tie-in to the bottom line. Valenti explains, “It seems like there are more candidates applying for positions than ever before, and you find yourself under a sea of resumes filled with diverse skills and experiences.

Your human resources department is a little smaller and it seems like everyone’s time is at a premium. And, of course, you need the position filled yesterday! Hence, the $8,000 bet.”

The Solution
Pre-employment assessment technology can improve significantly the odds of hiring the right employee. The job description is the roadmap and should include skills that are deemed critical contributors to success. But the obstacles posed by an influx of resumes with a smaller recruiting staff can seem insurmountable. Valenti offers a description of a new scenario. “First, Internet technology provides the ability to access a wide variety of skills assessments via the Web. Common areas of interest would be clerical, software, technical, call center, customer service, financial and many more. Next, employers can issue password-protected session IDs to candidates via their email. A candidate would receive the session ID along with an email that explains the entire process.

Then, the candidate would test from any available computer with an Internet connection, at any time. Finally, scores would be emailed to the test administrator immediately upon the candidate’s completion, accompanied by a comprehensive report that includes proficiency by skill type, task type, question level and the time it took to answer each question.”

No More Bets
The guessing games end because each applicant with the relevant job experience receives a session ID and a battery of skills assessments by email. As a result, candidates self-select into the hiring pool and the technology offers the hiring manager a paired down list of those who qualify for the job. Valenti notes that face-to-face interviews can be scheduled faster and with more efficiency. As a result, HR managers can go on to the next hiring decision and supervisors can return to their work, reducing the time spent on filling one position and offering greater efficiency and productivity.

Situational Judgment Testing
Over the past decade situational judgment tests (SJTs) have increased in popularity as a predictor of performance. Jeff Weekley, PhD., senior researcher for Kenexa, explains, “In the typical situational judgment test (SJT), an applicant is presented with a variety of situations he or she would be likely to encounter on the job. These situations are usually gleaned from critical incidents or other job analytic methods. The applicant is then asked to select the best, and oftentimes the worst, course of action from several possible ways of handling the situation. Scoring is done by comparing the applicant’s choices to a key of correct/incorrect answers, which themselves are usually determined by the organization’s subject matter experts.” SJTs are traditionally given as paper-pencil tests, but some are available by video, PC and Web-based administration. The following is an example of an SJT question:

A long-tenured associate is going to retire in less than a year. This associate is widely respected by the other associates. Recently, the associate’s performance has slipped badly and his attendance has become irregular. What would you do?

1. Let the associate work out the year until he retires.
2. Reduce the associate’s hours and put him on the easiest assignments.
3. Coach the associate and, if necessary, take disciplinary action.
4. Suggest to the associate that he take early retirement.
5. Encourage the associate to transfer to another area.

Recent research shows that SJTs can predict behavior as well as cognitive ability tests. In addition, test-takers react more positively to SJTs. A 2001 study by McDaniel, Morgeson, Finnegan, Campion, and Braverman found that SJTs can provide validity comparable to cognitive ability tests, but SJTs do a better job of accounting for subgroup differences than cognitive tests.

Other characteristics of SJTs:
• Cognitive ability is consistently found to relate to both job performance and performance on SJTs.
• Conscientiousness, agreeableness, and emotional stability have been found to be related to SJTs. These are the three personality traits common to good customer service and integrity.
• SJTs may be able to capture unique abilities such as decision making. This may mean that SJTs not only measure experience, ability or personality, but also indicate a broader range of performance abilities.

Conclusion
As the nature of business becomes more competitive, employers recognize the importance of matching the right employee to the right job. Accurate assessment of employee abilities and attitude provide the foundation for a long-term performance management cycle.

Betty Hintch is the editor of Human Capital.

Reprinted from Human Capital Magazine