This article sheds some realistic light on these myths to illuminate how integrating pre-employment testing into your hiring process can increase retention and productivity, as well as decrease the likelihood of employment practices lawsuits.

Myth #1 – “We’ll be sued.”
Of course, anyone can be sued for anything. However, the proper use of testing as a selection tool actually reduces the likelihood of being sued for the following three reasons:

Myth #2 – “Pre-employment testing costs too much.”
As with any business decision, a company must weigh the costs verses the benefits when conducting pre-employment testing. Most psychological pre-employment tests range from $25 – $400 per use. Most HR professionals would agree that the cost of a bad hiring decision which results in turnover is at least twice the person’s salary when you factor in lost opportunity, decreased productivity, recruitment, and administrative costs. Besides the obvious costs of making a bad selection decision, a good hiring test can also significantly reduce the costs to prepare for an interview and train new hires that are more suited for the job, company culture, and manager’s style.

For every dollar an employer invests in personnel screening, the savings range from $5 to $16 in reduced absenteeism, improved productivity, lower turnover, safer working environments, reduced insurance premiums and decreased employer liability.
– USA Small Business Administration

It will be far less expensive to defend your use of a proven, reliable, and valid test than to defend hiring practices that do not include objective, nondiscriminatory testing. In addition, it’s far less expensive to use testing to ensure you hire an employee that will be more productive immediately than to pay your managers to oversee problem employees and engaging in a revolving door recruitment process.

Myth #3 – “It is too time-consuming.”
There are many tests on the market than take anywhere from 10 minutes to over 2 hours to complete. Some require an administrator while others do not. However, there are some very good tests that can be completed in 15-30 minutes time, and can be administered via the Internet and completed at home by the candidate. Depending on the level and type of position you are trying to fill some of the quicker tests will meet your needs.

As for the feedback such tests provide, an effectively designed interviewing and selection report substantially reduces the time needed to train interviewers and prepare and conduct an interview for the following reasons:

1 – An effective interviewing report will provide recruiters and department managers guidance on key strengths and weaknesses of the candidate to allow them to focus their valuable time on the critical areas necessary for success in the respective role/position instead of focusing their interview time on less critical areas.

Myth #4 – “Testing doesn’t work.”
More and more companies are utilising some form of psychological testing for more consistent and accurate hiring decisions. In a recent survey, 40 percent of Fortune 100 companies indicated that their employment selection systems included psychological testing. A similar survey by the American Management Association showed that 44 percent of its responding members used testing to select employees.

In talking with a human resources director of a large franchiser of Group 1 Automotive, a Fortune 500 company in Houston, here’s what she had to say about the psychological test they use for selection: “Historically, our industry experiences extremely high turnover, and as such we have been looking for a tool to help put the right person in the right job. Since we began using a psychologically based selection tool to help in our sales selection process, our retention has jumped from 10% to 77%, which we have calculated saved us $32 million over the past twelve months in related turnover and lost opportunity costs,” (Regina Roat, HR director, Sterling McCall Toyota).

If 40 percent of the USA Fortune 100 companies utilise some form of psychological testing for pre-employment screening, there must be some evidence it works otherwise they wouldn’t spend the money.

Conclusion
With recent events placing a renewed emphasis on security and corporate ethics and values, it’s more important than ever to use all available resources to screen potential employees. Companies are now realizing that the time and money spent on a properly conducted pre-employment screening program can help ensure a safe, secure and productive workplace, while expediting their selection process.

[Source: article by Mike Poskey, vice president of ZERORISK HR, Inc]