The data for the AMA were compiled from surveys of its members. These tend to include larger organizations. Criteria Corp believes small and medium-sized businesses should have access to pre-employment tests. Its mission is to make such assessments available to all types of organizations.
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However, it's equally important to be realistic. It is impossible to predict the future, and tests do not provide a guarantee of success. Test companies that claim to have 99.9% accuracy and "Never make another poor hire again" are lying. They either don't understand the science behind testing, or they misrepresent it to sell their test. Employers should not include tests in their hiring process. It does not guarantee that they won't make another bad hire. One test does not guarantee success. Test results can be misleading. Some employees who fail to test well might be great employees. While tests are statistically more reliable than resumes and interviews as predictors, employers must remember that there is no perfect method for predicting performance.
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Pre-employment tests are only one part of the comprehensive criteria used to evaluate candidates. The other elements include resumes and interviews, job experience, education, job history, and all other information that may be relevant for the position. Pre-employment tests can be of great value when they are applied at the end of the hiring process in order to filter out applicants who aren’t a suitable fit. However, the final decision of organizations that use testing is made based on many factors. The tests should not be the only factor. Companies should expect testing to improve and streamline the hiring process and not replace it.
What are the expected results from pre-employment screenings? It is important for companies to have realistic expectations and goals about the potential results of pre-employment tests. By using professionally-developed, validated testing instruments, employers are adding objective, data-driven metrics to the hiring process. Tests should lead to incremental improvements in hiring and lower the risk of making mistakes. It should drastically streamline the hiring process. It should also translate into tangible improvements in a business's productivity and turnover by lowering training and hiring costs and improving productivity. This streamlining should produce tangible results. A ROI Calculator is a tool that can help companies calculate the potential returns after testing.
Figure 3. According to the American Management Association's (AMA) survey, 70% of employers carry out some kind of job skill test. 46% of employers administer personality and/or psychological tests to applicants or employees. 41% of employers also test applicants for basic literacy, math, and 41% use psychological tests.