Psychology
for Business
eNewsletter
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We are dedicated to bringing out
the best in you and your employees
Vol.2, No.12
June 15, 2001
PSYCHOLOGICAL ASSESSMENTS IN THE WORKPLACE:
TOOLS FOR IMPROVING THE "ODDS"
By Lynda Dahlke, PhD,
Business Psychologist and Independent Consultant
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How do you improve the odds of
finding success when pursuing your goals in life?
One of my goals is to catch a trophy Muskie (ok, anything
over legal limit will suffice). Anyway,
one cold, rainy fall morning I was casting my line on the waters of the Chippewa
Flowage in Northern Wisconsin in pursuit of a Walleye.
To my great surprise, a very large fish ended up on the end of my line!
I was delighted to have gotten this fish near the boat, so I could at
least get a glimpse of what was to be an extremely large Muskie! What a shock it was when both the Muskie and I realized (at
the same moment) that the small doll fly and 8 pound test line were no match for
this bunker. He took one look at
me, rolled over and took off for parts unknown.
I had failed to use the right "tools" to improve my odds of
achieving my goal.
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Improving your odds of
achieving your hiring goals:
~~
What do you do to improve the odds of hiring or promoting the "right"
people for your organization? Many organizations place an ad in the newspaper, trade
journal, or on the Internet to attract job applicants.
After reviewing resumes, attractive applicants are interviewed and
references are often checked. There
is nothing wrong with this process EXCEPT it is not enough. Interviewing and reference checking are a good start, but why
leave employee selection up to chance? Research
provides evidence that over 30,000,000 people have lied on their resume.
Studies done at the University of Michigan report only a 14% accuracy
rate, when using an interview only, for hiring new employees.
Even if you are better than "average", it still leaves much to
chance.
What is a pre-employment
assessment?
~~
The exact method can vary, however, when conducted by a professional, the format
usually includes the use of paper and pencil testing and an interview.
There are many options today to provide pre-employment testing.
The
Internet is one of the more recently developed methods of
testing that can contribute convenience and objectivity while being easily
accessible. Whatever method of
testing is determined to be needed (no
matter how it is administered by a skilled professional), it must directly
measure the competencies required for the specific job in question.
As far as the Internet and self-administered assessments go, let the "buyer beware". Some are adequate; many are not. Be sure that the instruments or procedures you use are adequately validated and are reliable measures for the competencies required for the position being filled. If the assessment method used is not valid and reliable, it is a waste of resources. Although engaging a professional (business psychologist) may increase the cost of the evaluation, using assessment material on your own could be compared to "rolling the dice". Sometimes it works and often it doesn’t.
Generally tests are selected based upon the specific and
unique skills and competencies required in a job.
Interview questions are tailored to the specific job as well.
Verbal and written reports are provided, in most cases, as part of a
complete selection process. This is what you should expect for an objective,
scientifically proven process that is most likely to provide you with the
candidates that come closest to what you are wanting. It significantly increases
the probability of your decision being based on information that is accurate and
defensible regarding your final choice.
Ok, I am convinced that these
are of value, but how much does this cost?
~~
Before one can truly determine the cost versus benefits of pre-employment
assessments, it is important to calculate the costs of NOT using a scientific
and professional selection process in gathering your critically important
information.
Research demonstrates that when you select the wrong
employee (or the right employee leaves) replacement, training and lost
productivity cost the equivalent of annual salary plus benefits multiplied by
2.5. (For top managers it can range
from 3-5 times their annual salary, plus benefits)
Some research evidences that the replacement of a manager or sales person
can even range as high as 10 times their annual salary (according to Building
Winning Teams, by Plotkin).
The cost of turnover in businesses in the USA in the year
2000 was estimated to be 140 billion dollars.
So, as we look at the cost of assessing candidates for a position in your
company, keep in mind the significantly greater cost of making the
"wrong" decision.
Generally, the costs of pre-employment assessment conducted
by a psychologist ranges from $650 to $2500 depending upon the vacant position.
The cost sometimes varies depending on the type, or number, of
competencies necessary to be evaluated.
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So what does all this mean?
What can I do to improve the
odds of "catching" the "right" employee?
Use the appropriate tools to give you the edge.
Pre-employment assessments add the "tools" required to provide
the critically important information (that cannot be obtained by any other
means), necessary for intelligent decision-making.
I know I will use quality Muskie bait, and a 25-pound test
line, the next time I go fishing for my trophy catch.
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For further information or to schedule pre-employment testing in your organization please feel free to contact us at ldahlke@psychologyforbusiness.com
About the Author
Lynda Dahlke, Ph.D. is a licensed psychologist with over 20 years of experience
working with individuals and groups from diverse backgrounds and levels of
responsibility. She is able to deliver practical, action oriented assessment and
guidance. Lynda specializes in pre-employment assessment, executive and
managerial coaching, conflict management and organizational
diagnostics/consulting.
Based in Waukesha, WI, Dr. Lynda Dahlke is available for consultation or
coaching by phone, e-mail or in person. She may be reached at (262)
544-9918 (office), by e-mail at ldahlke@psychologyforbusiness.com or:
Lynda Dahlke, Ph.D.
Psychology for Business
2717 North Grandview Boulevard, Suite 303
Waukesha, Wisconsin, 53188
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(c) Copyright 2001. All rights reserved. Lynda Dahlke. Distribution rights: The
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