The data of the AMA are based on surveys taken from its membership, which tends be comprised of larger organizations. Criteria Corp believes that all businesses, small and large, should have the opportunity to use pre-employment testing. We aim to make this accessible to all companies.
What results should companies expect to see from pre-employment tests? It is important to set realistic goals and expectations about what a preemployment testing program can accomplish for an organization. By using professionally-developed, validated testing instruments, employers are adding objective, data-driven metrics to the hiring process. The tests can drive incremental improvements in hiring results and reduce the risk of hiring bad candidates. It should streamline the hiring process dramatically and lead to demonstrable improvements in a company's bottom line. This includes reducing turnover, decreasing training and hiring costs, and increasing productivity. This streamlining should lead to tangible gains. An ROI Calculator can be used to show what company can expect from testing.
Figure 3: American Management Association (AMA), a survey that found 70% of employers employ some form of job skill testing. 46% use personality or psychological tests to screen potential applicants and current employees. 41% test applicants for basic math and literacy skills.
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In recent years, pre-employment testing is a growing trend. Because of the increasing number of applicants, recruiters and hiring mangers are now more reliant on data-driven talent administration practices to streamline the hiring process. American Management Association (AMA), a survey that looked at pre-employment testing, found that it has seen a steady increase in use over the past fifteen years. According to data from the American Management Association (AMA),:
Pre-employment testing should be used as a single element in a comprehensive evaluation of applicants. Other criteria include resumes, interviews, job experiences, education and any other relevant information. Pre-employment testing is most useful when used early in the hiring process, to help screen candidates that are not a good match. However, testing is only one factor that organizations using tests use to make final decisions. Companies should expect tests that streamline and improve the hiring process.
But it is equally important that you are realistic and know what to expect from preemployment testing. The tests are not perfect and any person who asserts otherwise is lying. Some testing companies claim they can guarantee 99.9% accuracy or that employers will not make a mistake again if they use their tests. Employers won't make another poor hire by including tests in the hiring process. However, it does mean that there will be fewer of them. A test cannot be a reliable predictor. People who do poorly on tests may be excellent employees. Others that do well may be poor. Research shows that tests are more reliable and accurate predictors of performance than resumes or interviews. However, employers need to remember that there is no single method that can accurately predict performance.