8-1 Effective measurement and data analytics can result in a competitive edge Improperly assessing and measuring candidate characteristics can lead to: ◦ Systematically hiring the wrong people ◦ Offending and losing good candidates ◦ Exposing your company to legal action There are many legal issues involved with candidate assessment and measurement
8-2 Measurement is the process of assigning numbers according to some rule or convention to aspects of people, jobs, job success, or aspects of the staffing system The measures enables improvement of the staffing system by identifying patterns useful for understanding and predicting relevant processes and outcomes The measures relevant to staffing are those that assess: ◦ The characteristics of the job, which enables the creation of job requirements and job rewards matrices ◦ Aspects of the staffing system such as the number of days a job posting is run, where it is run, and the recruiting message ◦ The characteristics of job candidates such as ability or personality ◦ Staffing outcomes, such as performance or turnover
8-18 Sampling error: When you use statistics, including correlations, to draw inferences or conclusions, you have to be concerned about sampling error. Sampling error is the variability in sample correlations due to chance. You can address sampling error through statistical significance testing procedures.
8-19 Statistical significance: the degree to which the observed relationship is not likely due to sampling error. ◦ This is a minimum requirement for establishing a meaningful relationship Practical significance: the observed relationship is large enough to be of value in a practical sense. ◦ In a large enough sample, a very small correlation would be statistically significant but the relationship may not be strong enough to justify the expense and time of using the predictor An inexpensive assessment system may be useful even if the correlation is small. Alternatively, if an assessment method that correlated .15 with job success was expensive, took a long time to administer, and was only moderately liked by job candidates, it may not be worth using even if it is a statistically significant predictor of job success.
8-22 Reliability refers to how dependably or consistently a measure assesses a particular characteristic Measurement error influences reliability. Measurement error can be random or systematic. To evaluate a measure’s reliability, you should consider: ◦ The type of measure ◦ The type of reliability estimate reported ◦ The context in which the measure will be used
8-23 All of these factors, as well as others, can influence reliability. That is why tests or assessment tools should be standardized in their use. ◦ Temporary physical or psychological state ◦ Environmental factors ◦ Version, or form, of the measure ◦ Different evaluators
8-24 Random error: error that is not due to any consistent cause Systematic error: error that occurs because of consistent and predictable factors Deficiency error: error that occurs when you fail to measure important aspects of the attribute you would like to measure Contamination error: error that occurs when other factors unrelated to whatever is being assessed affect the observed scores
8-27 Commonly used as a measure of the internal consistency of psychometric tests. Not robust against missing data. Si2 rXX ( k k 1 )(1 S X2 ) k : the number of items S i2 : sample variance for item i S X2 : sample variance of the total test scores
Publishing as Prentice Hall 1- 28 The standard error of measurement (SEM) is the margin of error that you should expect in an individual score because of the imperfect reliability of the measure. It represents the spread of scores you might have observed had you tested the same person repeatedly. The confidence interval represents the degree of confidence that a person’s “true” score lies within their earned score plus or minus the SEM, given some level of desired confidence. The lower the standard error, the more accurate the measurements. ◦ If the SEM is 0, then each observed score is that person’s true score
Inc. Publishing as Prentice Hall 1- 30 Validity refers to how well a measure assesses a given construct and the degree to which you can make specific conclusions or predictions based on observed scores. Validity can tell you what you may conclude or predict about someone based on his or her score on a measure, thus indicating the measure’s usefulness. Validity will tell you how useful a measure is for a particular situation; reliability will tell you how consistent scores from that measure will be. You cannot draw valid conclusions unless you are sure that the measure is reliable. Even when a measure is reliable, it may not be valid. ◦ You might be able to measure a person’s shoe size reliably but it may not be useful as a predictor of job performance. Any measure used in staffing needs to be both reliable and valid for the situation.
8-34 A validity coefficient is a number between 0 and +1 that indicates the magnitude of the relationship between a predictor (such as test scores) and the criterion (such as a measure of actual job success). The validity coefficient is the absolute value of the correlation between the predictor and criterion. Validity coefficients rarely exceed .40 in staffing contexts.
8-38 Applicants—a valid assessment system can result in adverse impact by differentially selecting people from various protected groups, have low face validity, and result in lawsuits. Organization’s time and cost—a valid assessment system can have an unacceptably long time to fill or cost per hire, result in the identification of high- quality candidates who demand high salaries, resulting in increasing payroll costs; and be cumbersome, difficult, or complex to use.
8-39 Future recruits—a system can be valid but if the system is too long or onerous then applicants, particularly high-quality applicants, are more likely to drop out of consideration; word that a firm is using time- consuming selection practices could reduce the number of applications; a valid system could result in differential selection rates and reduce the number of applicants from a particular gender, ethnicity, or background; and valid systems can still be viewed as unfair, resulting in fewer future applicants. Current employees—a valid assessment system may favor external applicants or not give all qualified employees an equal chance of applying for an internal position; employees may question its fairness.
8-40 Validity generalization: the degree to which evidence of validity obtained in one situation can be generalized to another situation without further study Based on meta-analysis No guarantee that the same validity will be found in any specific workplace Legal acceptability not yet established
8-41 Examine available validation evidence supporting using the measure for specific purposes. Evaluate the procedures used in the validation studies and the results of those studies, and consider the definition of job success used in them. Identify the possible valid uses of the measure. The purposes for which the measure can legitimately be used should be described, as well as the performance criteria that can be predicted validly. Establish the similarity of the sample group(s) on which the measure was developed with the group(s) with which you would like to use the measure. Ex. What was the race, ethnicity, and age of the sample? Confirm job similarity. A job analysis should be performed to verify that your job and the original job are substantially similar in terms of ability requirements and work behavior. Examine adverse impact evidence. Reports from outside studies must be considered for each protected group that is part of your labor market. If this information is not available for an otherwise qualified measure, an internal study should be conducted, if feasible.
8-42 Measures should be used in a purposeful manner Use a variety of tools Use measures that are unbiased and fair to all groups Use measures that are reliable and valid Use measures that are appropriate for the target population Ensure that administration staff are properly trained Ensure suitable and uniform assessment conditions Maintain assessment instrument security Maintain confidentiality of results Interpret scores properly
8-43 All assessment tools are subject to errors, both in measuring a characteristic, such as verbal ability, and in predicting job success criteria, such as job performance. ◦ Do not expect any measure or procedure to measure a personal trait or ability with perfect accuracy for every single person. ◦ Do not expect any measure or procedure to be completely accurate in predicting job success. Selection errors occur when you fail to hire someone who would have been successful at the job (false negatives) or you hire someone who is not successful at the job (false positives). ◦ Selection errors cannot be completely avoided in any assessment program or method, but they can be reduced.
8-48 It is sometimes useful to compare an organization’s staffing data with other similar organizations Comparative dimensions can include: ◦ Application rates ◦ Average starting salaries ◦ Average time to fill ◦ Average cost per hire
8-49 Determinants of effectiveness of an assessment method include ◦ Validity (whether assessment predicts job success) ◦ Return on investment (ROI) (whether assessment generates a financial return that exceeds the cost associated with using it) ◦ Applicant reactions (perceptions of job relatedness and fairness) ◦ Usability (willingness and ability of people in the organization to use the method consistently and correctly) ◦ Adverse impact (whether the method can be used without discriminating against members of a protected class) ◦ Selection ratio (whether the method has a low selection ratio)
8-50 What types of measures of job candidates are most likely to be high in terms of their reliability and validity? Does this make them more useful? Why or why not? How would you explain to your supervisor that the correlation between interview scores and new hire quality is low and persuade him or her to consider a new job applicant evaluation method?
8-51 What correlation would you need to see before you were willing to use an expensive assessment test? When would it be acceptable to use a measure that predicts job success but that has adverse impact? What do staffing professionals need to know about measurement?
8-52 Teddy-bear maker Fuzzy Hugs pursues a high- quality, low-cost strategy and can’t afford to hire underperforming manufacturing employees given its lean staffing model. Fuzzy Hugs has identified an assessment system that has high validity and predicts job success well, but that is also very expensive and results in fairly high levels of adverse impact. The company is concerned about maintaining a diverse workforce, and wants to avoid legal trouble. The assessment tools it identified that had lower adverse impact had substantially lower validity as well, and were almost as expensive. ◦ The company asks your professional advice about whether it should use the new assessment system. What advice do you give?
8-53 This chapter’s “Develop Your Skills” feature gave you some tips on assessing job candidates. Based on what you read in this chapter, what are three additional tips that you would add to the list?