Picking the Right Assessment Tools

    There is no single "best" type of assessment tool. Assuming they are appropriately designed and administered, all of the major types of assessment tools can effectively predict future candidate behavior. Appropriate use of any well-designed assessment tool will substantially improve a company’s bottom line. The challenge is to determine which assessment tools will have the greatest impact, given your company’s particular needs. Here are some general guidelines to help you figure out which assessment tool is best for you.

Understanding what you’re trying to predict
    The first step in choosing an assessment tool is to determine what your specific needs are. This means understanding and clearly outlining what kind of performance you want to predict.

    For instance, if theft is the most important issue affecting organizational performance, then you should look at assessment tools specifically designed to identify candidates who are likely to steal. These might include background checks or integrity tests. If customer service has the greatest impact on revenue, then consider job simulations designed to assess candidates’ ability to handle difficult customer interactions or talent measures that assess candidates’ interpersonal style.

    This table summarizes the effectiveness of various assessment tools for predicting different kinds of job performance. It can be used as a general guide in trying to determine what types of assessment tools to consider.

The importance of validation
    Whatever type of assessment tool you are considering, it is important that it be validated. Validation is a process for testing and documenting the effectiveness of an assessment tool in predicting job performance. Any vendor you are considering should be able to provide detailed "validation" data demonstrating the effectiveness of its assessment instruments in predicting different types of job performance.

    Validity data tends to be presented in two forms: percentages and validity coefficients. Percentages show increases in the number of successful hires that are associated with use of a specific assessment tool. For example, Unicru conducted research showing that employees hired with their assessment tools had turnover rates that were 25 percent lower than those of employees hired without use of these tools. Percentages are easy to interpret, but they demonstrate only the effectiveness of tools that predict highly objective kinds of performance such as turnover or sales volume.

    Validity coefficients show the effectiveness of assessment tools for predicting less objective forms of performance such as customer service, problem-solving, or teamwork. Validity coefficients are an index of an assessment’s ability to predict performance. They range from 0, which indicates no relationship between an assessment tool and job performance, to 1.0, which indicates 100 percent accuracy.

    The table below provides some general guidelines for interpreting the meaning of different validity coefficients. The validity coefficients of well-designed assessment tools usually range from .15 to .60, with most falling between .20 and .40. Beware of anyone claiming validity coefficients above .70, as this level is unrealistic for practical purposes.

The advantages of using several tools
    It is important to remember that job success almost always depends on several different kinds of performance. For example, an employee who is very good at customer service will be of little value if he/she frequently misses work. You can increase the effectiveness of a selection system by combining assessment tools that predict different types of job performance. For instance, combining a personality test with an ability test can increase the overall predictive ability of your selection system by 20 percent or more. Adding one or two additional assessment tools can often significantly increase the ROI of your staffing processes.

    It is important to choose assessment tools that predict the various kinds of performance that are most critical to the job. As a general rule, it is good to focus on having assessment tools that predict both what candidates "can do" and what they "will do." This usually means having a mix of assessment tools that measure "hard skills" such as knowledge and problem-solving ability as well as "soft skills" such as reliability and customer service.

    Of course, as long as it predicts a key area of performance, there is nothing wrong with using just one kind of assessment tool. However, hiring managers and recruiters should be careful not to overly emphasize the kinds of performance predicted by the tool at the expense of other factors that influence success.

    For example, if a test of knowledge or ability is used as the only assessment tool, hiring managers may decide to hire only candidates who score in the top range. While this will increase the likelihood of hiring good problem-solvers, it could decrease the number of hires who are likely to show high levels of work ethic and reliability.

Workforce Online, December 2002 -- Register Now!