Do you ever wonder why organizations use interviews and tests? Simple…to screen-out unqualified candidates.
·What happens when no one can produce a study showing interviews or “good” test scores actually lead to good employees and managers? Right…since studies seldom happen, turnover stays high, payrolls become bloated, performance stays low, and the local EEOC office lurks in the shadows waiting for an opportunity to pounce.
The EEOC suggests, but does not require, every organization base its hiring practices on something called “business necessity and job requirements” and can produce reports showing test-scores relate to performance (this includes interviews, application forms, sourcing ,or any other screening system to be a test).
Amazingly enough, the EEOC guidelines are just good practice. Any company that follows them is ensured high-quality applicants, low turnover, right-sized employee pool, and high productivity. Think of hiring as a sports team with good talent scouts and good coaches.
Some researchers calculate un-validated hiring practices from 10% to 50% of annual payroll depending on the job. You can calculate your own numbers by adding up absenteeism, turnover, recruiting, training, job mistakes, quality problems, bad management and so forth.
- Myth 1…The EEOC “validates” specific tests. The only time the EEOC validates a specific test is when a company can produce evidence of business necessity, job requirements, and reports showing test-scores relate to performance. Can your company do that?
- Myth 2…Tests for XZY job work for my XZY job. Really? Are the two jobs identical? Are people in the test base all high performers? Are the companies identical?
- Myth 3…Our XYZ test has been validated. Not unless your company can produce evidence of business necessity, job requirements, and reports showing test-scores relate to performance.
- Myth 4…Interviews are accurate…Research shows about half the people who pass interviews turn out to be high performers. Although some interview techniques are better than others (i.e., structured behavioral), most cannot screen out bad applicants