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Can You Make Better Hiring Decisions with Electronics?
Some employers seem to think so; for instance, Home Depot's (Atlanta)
electronic kiosks installed in its 98 stores prescreen hourly employees. After two computerized prescreening tests, the best employees emerge from the process, according to Al Frost, director of
management development. The system prints test results and provides sets of highly structured interview questions based on candidates' responses, giving examples of both good and bad answers. It has been
developed almost entirely in-house.
Turnover is down 11% in the year since Home Depot began using the system.
Another bonus: "More qualified people are being hired through this process," Frost said. "It's a clear consensus. Everybody sees that, and that's really the bottom line." Those hired
through the kiosks post 12% higher scores on product knowledge exams and 14% better overall performance ratings than those hired under the prior system. The company is also saving the $4 per test
previously administered by outside consultants and $132 per applicant in paper and processing costs.
In addition, the system can track which ads are most effective in
attracting minority or female candidates, determine the best hours to recruit, and identify which locations need improved advertising strategies to draw enough applicants.
Another satisfied customer of electronic hiring is Shurgard Storage
Centers, Inc. (Seattle), which uses electronic terminals to administer two standardized pre-employment tests, for honesty and sales aptitude, to management-level candidates. The terminals deliver the
information to Decision Point Systems (Beaverton, Ore.), the system vendor, which then sends back test scores, a quick criminal background check, and suggested interview questions-all in about 10
minutes. Entry-level management turnover has dropped 4% after six months of use at some locations, said Mark Matthews, senior HR generalist. The company hopes to add a Web address to newspaper job ads so
that applicants can have a link to the screenings at home.
Tips for making electronic hiring work from those who use it include:
Work with a consulting firm to construct scientifically valid
pre-screening tests.
Negotiate for ownership of the tests to avoid paying consultants on a
per-applicant basis.
Make sure applicant data can flow easily into a stand-alone
applicant-tracking database or next-generation candidate relationship management system.
Install a terminal in the break room or give existing employees other
access to one so they can look at criteria for other jobs and take competency tests for them.
Try to keep the system compatible with payroll and with the HRIS system.
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