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SHRM Poll: Personality Tests for the Hiring and
Promotion of Employees


                                    December 16, 2011
Key Findings




  Do organizations use personality testing for hiring or promoting employees? A majority of organizations
   (82%) do not use a personality test in the hiring or employee promotion process.



  What are the most common job groups targeted when using personality tests in the hiring or
   promotion process? Of the few organizations that indicated using personality tests, the majority use
   them for mid-level managers (56%), followed closely by executives (45%) and entry-level exempt jobs
   (43%).



  How do HR professionals view the use of personality testing in the workplace? The majority of HR
   professionals (71%) indicate that personality tests can be useful in predicting job-related behavior or
   organizational fit; 14% of respondents disagree.




                                                             Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011
                                                                                                                                      2
Does your organization currently use a personality test in hiring or promoting employees (this
would include a personality test used as part of an assessment center or individual assessment
process)?




                         2%
          Unsure



                                          18%
                   Yes



                                                                                                                80%
                   No



  Note: n = 495.




                                                            Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011
                                                                                                                                     3
For which of the following job groups is personality testing used in your organization as part of
 the hiring or promotion process?




                                                                                                                                         Don’t use
                                                     All job           Most job          Some job             Few/select
                                                                                                                                        for any job
                                                   applicants         applicants         applicants         job applicants
                                                                                                                                        applicants

 Nonexempt (hourly) positions                           30%                5%                 8%                   22%                       35%


 Entry-level exempt jobs (professional,
 supervisor, individual contributor,                    43%                4%                 15%                  13%                       25%
 etc.)

 Mid-level managers (manager,
                                                        56%                7%                 9%                    4%                       24%
 director, etc.)


 Executives (VP, SVP, EVP, chief)                       45%                7%                 1%                    7%                       40%


Note: n = 89. Respondents who answered “not sure” were excluded from this analysis. Only respondents whose organizations currently use a personality test
in the hiring or employee promotion process were asked this question.




                                                                                      Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011
                                                                                                                                                               4
What is the most common method your organization uses to administer the personality test(s)
in the hiring or promotion process?




                                                                                                                                       Percentage

 The test is administered in-person, and the administrator oversees the candidate testing process, including
 checking identification of the test-taker, administering the test either by paper and pencil or by computer,                              20%
 and monitoring the test-taker and the test-taking environment during the entire process.

 The test is administered in-person, but the administrator does not monitor the test-taker or the test
                                                                                                                                           16%
 environment throughout the process.

 The test is administered online, and the test-taker can take it from anywhere he or she has Internet access.                              56%


 Other                                                                                                                                      8%


Note: n = 75. Respondents who answered “not sure” were excluded from this analysis. Only respondents whose organizations currently use a
personality test in the hiring or employee promotion process were asked this question.




                                                                                   Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011
                                                                                                                                                            5
Have you had any legal challenges (not simply by verbal complaints, but a formal legal filing or
notice from a lawyer) related to your organization’s use of personality testing in the hiring or
promotion process?




          Unsur                            10%
            e


                                   1%
              Yes



                                                                                                                                                    88%
               No




  Note: n = 78. Only respondents whose organizations currently use a personality test in the hiring or employee promotion process were asked this
  question. Total does not equal 100% due to rounding.


                                                                                      Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011
                                                                                                                                                               6
Have job applicants made verbal or written complaints (not including formal legal complaints)
about your organization’s use of a personality test in the hiring and/or promotion process?




          Unsur                     5%
            e


                                                 12%
              Yes



                                                                                                                                           83%
               No




  Note: n = 76. Only respondents whose organizations currently use a personality test in the hiring or employee promotion process were asked this
  question.


                                                                                      Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011
                                                                                                                                                               7
HR Professionals’ Perceptions About Personality Tests




                                                                                                                            Percentage


 When properly vetted and validated, personality tests can be useful in predicting job-related behavior
                                                                                                                                62%
 or organizational fit.


 Personality tests are generally not useful in predicting job-related behavior or organizational fit.                           14%


 Personality test are useful in predicting job-related behavior or organizational fit.                                           9%


 The use of personality testing may leave applicants with negative views of the organization, and
                                                                                                                                 8%
 therefore, these tests should be used sparingly or not at all.


 Other                                                                                                                           7%


Note: n = 466.




                                                                         Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011
                                                                                                                                                  8
Demographics: Organization Industry




                                                                                                              Percentage

Manufacturing                                                                                                      18%
Health care and social assistance                                                                                  14%
Finance and insurance                                                                                              11%
Professional, scientific,and technical services                                                                     9%
Educational services                                                                                                7%
Accommodation and food services                                                                                     5%
Retail trade                                                                                                        5%
Public administration                                                                                               4%
Transportation and warehousing                                                                                      4%
Administrative and support, and waste management and remediation services                                           2%
Construction                                                                                                        2%



   n = 423. Total does not equal 100% due to rounding.


                                                         Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011
                                                                                                                                  9
Demographics: Organization Industry (continued)




                                                                                                                  Percentage
Information                                                                                                             2%
Utilities                                                                                                               2%
Wholesale trade                                                                                                         2%
Agriculture, forestry, fishing and hunting                                                                              1%
Religious, grantmaking, civic, professional and similar organizations                                                   1%
Construction                                                                                                            0%
Information                                                                                                             0%
Utilities                                                                                                               0%
Private households                                                                                                      0%
Real estate and rental and leasing                                                                                      0%
Repair and maintenance                                                                                                  0%
Other                                                                                                                   9%

   n = 423. Total does not equal 100% due to rounding.


                                                             Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011
                                                                                                                                      10
Demographics: Organization Sector




      Privately owned for-profit organization                   18%



      Publicly owned for-profit organization                                                                    52%



                      Nonprofit organization                    18%



                         Government sector           8%



                                       Other    4%

     n = 419



                                                      Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011
                                                                                                                               11
Demographics: Organization Staff Size




                               35%


                26%

                                               18%
                                                                         16%


                                                                                                        5%



   1 to 99 employees 100 to 499 employees 00 to 2499 employees to 24999 employees or more employees
                                        5                  2500              25000

      n = 402



                                                     Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011
                                                                                                                              12
Demographics: Other




                                                    Is your organization a single-unit company or a multi-
                                                    unit company?
Does your organization have U.S.-based
operations (business units) only or does it         Single-unit company: A company in which the
operate multinationally?                            location and the company are one and the                      36%
                                                    same
U.S.-based operations only                74%
                                                    Multi-unit company: A company that has
Multinational operations                  26%                                                                     64%
                                                    more than one location
n = 449                                             n = 448




                                                   Are HR policies and practices determined by the multi-unit
HR department/function for which you               corporate headquarters, by each work location or both?
responded throughout this survey
Corporate (companywide)                   73%      Multi-unit headquarters determines HR policies
                                                                                                                   51%
                                                   and practices
Business unit/division                    18%
Facility/location                             9%   Each work location determines HR policies and
                                                                                                                    3%
                                                   practices
n = 301
                                                   A combination of both the work location and
                                                   the multi-unit headquarters determine HR                        46%
                                                   policies and practices
                                                   n = 302


                                                              Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011
                                                                                                                                       13
SHRM Poll: Personality Tests for Potential Job Candidates




   Methodology



        Response rate = 18%

        Sample composed of 495 randomly selected HR professionals from SHRM’s membership

        Margin of error +/- 4%

        Survey fielded May 16 -27, 2011




                     For more poll findings, visit www.shrm.org/surveys
                     Follow us on Twitter: http://twitter.com/SHRM_Research




                                                            Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011
                                                                                                                                     14

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Personality Tests for Hiring and Promotions

  • 1. SHRM Poll: Personality Tests for the Hiring and Promotion of Employees December 16, 2011
  • 2. Key Findings  Do organizations use personality testing for hiring or promoting employees? A majority of organizations (82%) do not use a personality test in the hiring or employee promotion process.  What are the most common job groups targeted when using personality tests in the hiring or promotion process? Of the few organizations that indicated using personality tests, the majority use them for mid-level managers (56%), followed closely by executives (45%) and entry-level exempt jobs (43%).  How do HR professionals view the use of personality testing in the workplace? The majority of HR professionals (71%) indicate that personality tests can be useful in predicting job-related behavior or organizational fit; 14% of respondents disagree. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 2
  • 3. Does your organization currently use a personality test in hiring or promoting employees (this would include a personality test used as part of an assessment center or individual assessment process)? 2% Unsure 18% Yes 80% No Note: n = 495. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 3
  • 4. For which of the following job groups is personality testing used in your organization as part of the hiring or promotion process? Don’t use All job Most job Some job Few/select for any job applicants applicants applicants job applicants applicants Nonexempt (hourly) positions 30% 5% 8% 22% 35% Entry-level exempt jobs (professional, supervisor, individual contributor, 43% 4% 15% 13% 25% etc.) Mid-level managers (manager, 56% 7% 9% 4% 24% director, etc.) Executives (VP, SVP, EVP, chief) 45% 7% 1% 7% 40% Note: n = 89. Respondents who answered “not sure” were excluded from this analysis. Only respondents whose organizations currently use a personality test in the hiring or employee promotion process were asked this question. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 4
  • 5. What is the most common method your organization uses to administer the personality test(s) in the hiring or promotion process? Percentage The test is administered in-person, and the administrator oversees the candidate testing process, including checking identification of the test-taker, administering the test either by paper and pencil or by computer, 20% and monitoring the test-taker and the test-taking environment during the entire process. The test is administered in-person, but the administrator does not monitor the test-taker or the test 16% environment throughout the process. The test is administered online, and the test-taker can take it from anywhere he or she has Internet access. 56% Other 8% Note: n = 75. Respondents who answered “not sure” were excluded from this analysis. Only respondents whose organizations currently use a personality test in the hiring or employee promotion process were asked this question. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 5
  • 6. Have you had any legal challenges (not simply by verbal complaints, but a formal legal filing or notice from a lawyer) related to your organization’s use of personality testing in the hiring or promotion process? Unsur 10% e 1% Yes 88% No Note: n = 78. Only respondents whose organizations currently use a personality test in the hiring or employee promotion process were asked this question. Total does not equal 100% due to rounding. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 6
  • 7. Have job applicants made verbal or written complaints (not including formal legal complaints) about your organization’s use of a personality test in the hiring and/or promotion process? Unsur 5% e 12% Yes 83% No Note: n = 76. Only respondents whose organizations currently use a personality test in the hiring or employee promotion process were asked this question. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 7
  • 8. HR Professionals’ Perceptions About Personality Tests Percentage When properly vetted and validated, personality tests can be useful in predicting job-related behavior 62% or organizational fit. Personality tests are generally not useful in predicting job-related behavior or organizational fit. 14% Personality test are useful in predicting job-related behavior or organizational fit. 9% The use of personality testing may leave applicants with negative views of the organization, and 8% therefore, these tests should be used sparingly or not at all. Other 7% Note: n = 466. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 8
  • 9. Demographics: Organization Industry Percentage Manufacturing 18% Health care and social assistance 14% Finance and insurance 11% Professional, scientific,and technical services 9% Educational services 7% Accommodation and food services 5% Retail trade 5% Public administration 4% Transportation and warehousing 4% Administrative and support, and waste management and remediation services 2% Construction 2% n = 423. Total does not equal 100% due to rounding. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 9
  • 10. Demographics: Organization Industry (continued) Percentage Information 2% Utilities 2% Wholesale trade 2% Agriculture, forestry, fishing and hunting 1% Religious, grantmaking, civic, professional and similar organizations 1% Construction 0% Information 0% Utilities 0% Private households 0% Real estate and rental and leasing 0% Repair and maintenance 0% Other 9% n = 423. Total does not equal 100% due to rounding. Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 10
  • 11. Demographics: Organization Sector Privately owned for-profit organization 18% Publicly owned for-profit organization 52% Nonprofit organization 18% Government sector 8% Other 4% n = 419 Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 11
  • 12. Demographics: Organization Staff Size 35% 26% 18% 16% 5% 1 to 99 employees 100 to 499 employees 00 to 2499 employees to 24999 employees or more employees 5 2500 25000 n = 402 Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 12
  • 13. Demographics: Other Is your organization a single-unit company or a multi- unit company? Does your organization have U.S.-based operations (business units) only or does it Single-unit company: A company in which the operate multinationally? location and the company are one and the 36% same U.S.-based operations only 74% Multi-unit company: A company that has Multinational operations 26% 64% more than one location n = 449 n = 448 Are HR policies and practices determined by the multi-unit HR department/function for which you corporate headquarters, by each work location or both? responded throughout this survey Corporate (companywide) 73% Multi-unit headquarters determines HR policies 51% and practices Business unit/division 18% Facility/location 9% Each work location determines HR policies and 3% practices n = 301 A combination of both the work location and the multi-unit headquarters determine HR 46% policies and practices n = 302 Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 13
  • 14. SHRM Poll: Personality Tests for Potential Job Candidates Methodology  Response rate = 18%  Sample composed of 495 randomly selected HR professionals from SHRM’s membership  Margin of error +/- 4%  Survey fielded May 16 -27, 2011 For more poll findings, visit www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Research Personality Tests for the Hiring and Promotion of Employees ©SHRM 2011 14