1. Back Ground Checks and Measurement types MANA 4328 Dennis C. Veit dveit@uta.edu

2. Basic Concepts for Background Checks 1. Background Checks: 1. Why worry about performing a background check: It is estimated that companies lose over $50 Billion each year as a result of employee crime. Employers with fewer than 100 employees are the number 1 target of workplace crime. - and will continue to increase with computers. 2. Two main reasons to conduct a check You want to hire people who will help you not hinder you  P 154 examples Avoiding Lawsuits --- You as a company are liable for your employees and any thing in their background is your responsibility to know. “NEGLIEGNET HIRING” Examples: P 155 – 156 3. Two things to look for in your background check: Exaggerate ration Falsify information

3. What to check from the Resume/Application 1. Everything? 1. Common reasons for checking items – Job Related items 1. Job Change 2. Skills necessary have changed 3. New Position created 4. Poor quality of output from new employees 2. Sticking to job relevant areas serves two purposes: 1. It keeps you out of hot water, because only job-related data can legally be used to make hiring decisions 2. It makes the person providing the reference more comfortable and thus more likely to help you. 3. What two purposes does your background check serve: 1. ______________________ 2. ______________________

4. Main Types of Background Checks 1. Checking References -- 1. Talking with people who are familiar with the applicant 2. Finding information that is relevant and helpful 2. Checking Credentials -- 1. Verify such things as education degrees, certifications, and licenses, and criminal 2. Criminal background information 3. Normal information given by managers– 1. name/ date of employment/ 1. Verify a candidates strengths and weaknesses before you hire 2. Who would you ask? How do you determine which area to check? Use your _____________________ techinques.

5. Verifying Information --- How do you do them? 1. Deliberate fashion -- 1. Cannot rely on letters of reference 2. Must call references and institutions 3. Have follow up questions ready 4. Remember all questions MUST be Job Related 2. How do we get good information -- 1. Most people are trained on the laws? 2. Character defamation -- What must be proven? Why would a company not want to go to court? 3. Checking training needs – 1. Verify a candidates strengths and weaknesses before you hire 2. Who would you ask? 4. Qualified privilege?

6. Basic Concepts for Testing 1. HOW TO USE TESTING 1. Common reasons for testing 1. Job Change 2. Skills necessary have changed 3. New Position created 4. Poor quality of output from new employees 2. How do you know if your tests are accurate Many people taking the test One person taking the test many times 95% Confidence Intervals Variability and comparing test scores Mean / Standard Deviation Z scores and Percentiles Correlation coefficients 3. What type of test are there 4. Test vs. interviews 5. Bang for the buck: getting the most from your tests

7. Qualified Privilege Conditions must exist to invoke qualified privilege: 1. Information given in “good faith” not with malicious intent 2. Information can be substantiated or proven NO OPINIONS 3. Information given is limited to the inquiry 4. Information must be communicated to the proper parties, at the proper time, and through the proper methods

8. Fifteen Guidelines for conduction a reference check! 1. Contact only professional references 11. Go with what you've go 2. Develop a rapport with the references 12. Listen to what reference don’t say 3. Empathize with the reference 13. Be vague or indirect 4. Network with cooperative references 14. Contact references yourself 5. Contact more than on reference15. Remind the reference of his or her responsibility 6. Don’t give up 7. Do not limit yourself to the obvious references 8. Focus on verifiable, job –related information 9. Put the onus on the candidate 10. Have the applicant sign a wavier

9. When do you conduct the reference check?  The best time is ________________________________________  Why?  Applicant Pool is smaller  Verify situations learned during the interview session  Candidates will usually not know why they were not selected when done ASAP

10. TESTING FOR JOB ACCURRACY!  Always remember _____________________________

11. Variability  Sample selection portfolio Personality Inventory Identify Difference Test Critical Thinking Situational Judgment Test Interview Teamwork 30%40%30% Problem Solving 40% 20% Responsibility 30%70% Attention to detail 70%30% Flexibility 80%20%

12. Validity Tests Why perform a Validity Test?  We want an answer to a simple question: Do people who do better on this test perform better on the job?  A simple question, but how do you answer it? THREE TYPES OF VALIDITY TEST:  Content Validity  Construct Validity  Criterion Validity

13. Types of Validity Job Duties KSA’s Selection Tests Job Performance Criterion-Related Content-Related

14. Variability  Content Validity – A measure of how well the content of the test corresponds to the content and requirement s of the job.  Construct Validity – A measure of how well a test assesses intelligence or extroversion or shyness.  Criterion Validity – A measure of the link between test results and job performance.

15. Score – Mean Score – Mean Z Score = Std. Dev Std. Dev Understanding Correlation and Statistical Significance - Z Score or “Standard” Score Test 1 Test 2 BobJimSueLinda Raw Score49474947 Mean48 46 Std. Dev2.5.80 Z score.4-.43.751.25

16. Z scores and Percentiles  Look up z scores on a “standard normal table”  Corresponds to proportion of area under normal curve  Linda has z score of 1.25  Standard normal table =.9265  Percentile score of 92.65%  Linda scored better than 92.65% of test takers Z score Percentile 3.099.9% 2.097.7% 1.084.1% 0.050.0% 15.9% -2.02.3% -3.0.1%

17. What Types of Test Are There?  Skill or Ability Tests - These measure some basic talent, such as a general mathematical ability  Personality or Interest Inventories - Called inventories rather than tests because they identify characteristics, rather than measure according to a standard.  Knowledge Tests - Measure a level of understanding in a specific area – (usually certification tests)

18. Returning “ROI”  ROI - “Return on Investment”  Often described as Utility  How do you track?  Utility - Is based on three factors:  % of people in the general population (applicant pool)  Validity of test to predict performance  Level you use for cutoff

19. Why use Test over Interviews?  Tests tend to be more reliable – Since tests are standardized, all candidates answer the same questions and their responses are scored consistently  Tests allow us to evaluate complex competencies without formal training – A well designed test allows us to gather reliable and accurate information that might be difficult to gather effectively through an interview  Test can help reduce time you spend in interviews - Test can “screen out” unacceptable candidates

20. Advantages of Interviews vs. Tests  Interviews are often perceived to be more fair than tests– Allows for a fairer interview than just numbers  Interviews profed face-to-face opportunity– Good idea to meet people  Provides for “follow-up” questions - Test do not give you this opportunity

21. Factors to consider when determining cutoff score and evaluation of the ROI test  Cost of recruitment – will raise the cost the more you add.  Quality of the applicant pool - must have a valid number of applicants in our pool, which may require more time  Advers Impact - On specific cutoff scores on protected groups  Difference in performance between good and poor employees