Case: “To Test, or Not to Test, That Is the Question” for Amtrak, Integra LifeSciences
Many companies rely on personality tests to help with the selection of employees. In fact, evidence indicates that almost one-fourth of firms utilize these instruments to assess how well applicants fit into different work roles and environments. Some tools focus on measuring the Big Five personality traits, which include the factors conscientiousness, openness to experience, agreeableness, extroversion, and neuroticism. Others like the Myers-Briggs Type Indicator and Predictive Index identify different preferences and self-perceptions of individuals, which might affect their willingness and ability to perform on the job. Some personality tests are even being offered through gaming exercises to obtain a better assessment of traits and skillsPymetrics and Knack both offer these kinds of instruments.
Despite their ability to predict employment fit, using personality tests to assist with selection decisions may not work well in all situations. For instance, they may not effectively predict the future work performance of employees. These tests may also unfairly classify people into categories that can ultimately be altered by individuals with the right effort. Providing socially desirable responses (or “faking” good answers) is another concern with these tests. Finally, the use of personality tests may adversely affect candidates who are disabled or those who are members of other protected groups.
Still, personality tests can be an effective tool for screening and hiring new employees. The transportation agency Amtrak has been using such a test to determine how well job applicants fit the culture of the organization. In particular, the instrument identifies different personality characteristics that are associated with important work-related factors such as collaboration, ethics, safety, and customer service. The expected retirement of many Amtrak employees motivated the firm to use this personality test; it also needed a hiring approach that ensured good employee/company fit. Many thousands of individuals have already taken the online test that takes about 45 minutes to complete. The results place applicants into categories of “strong,” “moderate,” and “minimal” fit for the purposes of screening. Amtrak can then select which individuals to interview and hire.
Not all employers choose to incorporate personality tests into their employee selection processes. New Jersey-based Integra LifeSciences elected not to use them during the company’s transformation efforts. According to top official Padma Thiruvengadam, these tests might needlessly categorize people, thus limiting the company’s ability to identify individuals who can help it effectively transition. Integra LifeSciences will likely utilize such tests in the future when the company is functionally more stable.
Explain why it is or is not a good practice to use personality tests in employee selection. What are some of the advantages and disadvantages of personality tests used in this way?
