Psychometric testing online - the risks and benefits

Psychometric testing - the favourite weapon in a recruiter's arsenal - is going online. Does this pose a new dilemma for those companies who are already at risk when a hiring decision goes sour?

Online psychometric testing can be a useful addition to the recruiter's armoury as it provides an efficient initial filter, according to Scott Ruhfus, Asia Pacific regional president of organisational psychology consultancy SHL.

The company's SHLsolutions.com web site provides recruiting firms and internal HR departments with online testing through an ASP model. Standard and custom tests and questionnaires can be delivered for screening, selection and staff development purposes.

SHL has extensive testing experience, and has developed a system that generates random variations on questions drawn from large item banks. Each candidate receives a unique test, preventing them learning from previous attempts or test-takers, yet preserving the advantages of validated testing.

Candidates may take initial tests via the Internet at home or at some other convenient location. Delivering the test instrument as a Java applet takes care of some supervisory issues such as the time allowed for completion, but unsupervised testing cannot confirm the identity of the candidate. Ruhfus emphasised that stricter supervision is required during final selection testing than during screening, but said one SHL client found online screening reduced recruitment costs by $1000 per candidate and resulted in 50% rather than 30 percent passing the selection tests.

According to Sarah Kearney, managing director of SHL Australia, the company's target market is medium to large companies. While organisations of 250 or more people can benefit from the staff development tools, the recruitment and selection modules are more relevant to those with over 500 personnel (or agencies that recruit on their behalf). Local customers include Arnotts, Corrs Chambers Westgarth, Ericsson, TMP and the federal Public Service Merit Protection Commission. Some smaller organisations -- especially in the IT&T sector -- use SHLsolutions.com for the "high tech look," said Kearney.

A 25-question, off-the-shelf screening questionnaire with basic customisation could be online within a week for about $30,000. Usage charges are then levied either per candidate or for unlimited use within a defined time period. For example, three months unlimited use would cost around $45,000. While these numbers seem high, the cost per candidate is very affordable in circumstances such as graduate recruitment where the candidate pool may run into the thousands.

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Talkback 8 comments

    This type of testing is discri ...Anonymous -- 19/07/04

    This type of testing is discriminatory and prejudist. It has as much credibility as channel sevens 'how long will you live' program that aired recently. Just this week the Australian Industrial Relations Commission ruled that the tests could not show whether applicants could perform in the position applied for. (Telegraph 16/07). Irrelevant questions about an applicants preferences in all manner of things from hunting to whether your parents drink alcohol have no place in a free society. These tests take the responsibility off weak and incompetent management to make a dicision.

    Absolute discriminatory garbag ...Anonymous -- 19/07/04

    Absolute discriminatory garbage. I agree with James Rose. I have been successfully employed for 10 years and was deemed not suitable for the exact position with a rival company. No interview, no chance to justify an answer, not even a question about whether you had performed the job before. If my parents separation deems me unfit for a job then half the country is unfit. If it doesn't then why ask?

    Why dont we have these tests a ...Anonymous -- 19/07/04

    Why dont we have these tests at primary schools and then tell the kiddies what they are allowed to do for a job? It sounds a bit Hitler like, Doesn't it.

    I dont see the relevance the q ...Anonymous -- 20/07/04

    I dont see the relevance the questions have to obtaining the employment you seek. So many of the questions are so far removed from normal society I find it hard to believe they can gain any knowledge of the person they are actually questioning. If these questions are based on statistics how do they work out the statistics that are relevant to the individual...whatever happened to the person best suited to the job being successful. Now it's the person who can fool the statiticians.

    LOOK OUT IF YOUR "DIFFERE ...Anonymous -- 20/07/04

    LOOK OUT IF YOUR "DIFFERENT". There is no lie detector with these tests. I know of poeple who have failed once only to pass at another attempt. Do people change? What if they had a bad day? Statistically poor people commit more crimes so is Bob from Vaucluse more honest than Pete from Campbelltown? Im sure your test would assume so. There is a lot of negative feedback on this topic and Im sure a lot of competent people have been discriminated against by these tests. I believe they are technically illegal and it is only a matter of time before they are outlawed. Ive been a victim but strangely was asked to apply again next time. It is illegal for companies to discriminate on many grounds and it seems that by getting these tests done by an outside organisation the company gets the discriminating done for them.

    I agree with everything in the ...Anonymous -- 26/07/04

    I agree with everything in the previous letters. You people think you are God and its only a matter of time before a suicide is attributed to your disgusting testing procedure. People are much more complex than your little numbers game.

    do you drive too fast sometime ...Anonymous -- 27/07/04

    do you drive too fast sometimes?
    John loves cars and often exceeds the speed limit, sometimes by double. He thinks this is not that fast as he has done over 200km/h once. John answers no to this question.
    Pete is a real mummys boy and rarely does any wrong. He is very cautious. He once got caught doing 10km/h above the limit once when he didn't realise his speed going down a large hill. Pete tells the truth and answers yes.
    The test would point to Pete being the risk taker of the two. Ah but you say that it is done over hundreds of questions not just one ! Yes well John and Pete continue to answer along the same lines both believing they are telling the truth. As John and Pete have different standards of truth, John is going to get the nod over Pete who has harsh standards for himself. These tests could only be remotely accurate if every answer was dissected and the applicant asked why he answered y/n. I have lost faith in large organisations who use these tests. Surely Australians can devise their own methods and not follow lazily in the unproven footsteps of the U.S.

    I totally agree with the previ ...Anonymous -- 19/05/05

    I totally agree with the previous opinions.
    These tests are a croc and also a good money
    spinner for the companies that promote them.
    They convince employers that these tests are
    like the holy grail to meaure an individuals capabilities.To categorize people in this
    manner is not the most successful way to
    recruit.People are very complex and no amount
    of testing can measure that aspect.

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