Employers must be careful when including testing in their hiring process to avoid discrimination, particularly in light of a settlement announced by the Department of Labor in July.
The DOL penalized a company after it allegedly created barriers to minority applicants by applying pre-employment testing. The tests in question were designed to test candidates' abilities in areas such as applied mathematics. This company in particular may have more stringent discrimination standards applied than most, since it was a federal contractor, Human Resource Executive Online notes. Still, all employers may be subject to discrimination charges, and should ensure they consider the HR compliance aspects of any tests they implement.
The company's tests were deemed inappropriate and discriminatory because they tested prospective employees on areas which did not have a direct bearing on the work that was being performed.
"This case illustrates a dilemma in hiring practices facing many organizations," says Christine Riordan, dean and a professor of management at the Daniels College of Business at the University of Denver. "And, it will only increase as the demographic and ethnic populations of the labor pool change."
Research suggests that ability tests can serve as accurate predictors of performance, according to Riordan. However, she told the news source, they often discourage organizations from hiring minorities, which can draw the attention of the Equal Employment Opportunity Commission and other groups.
Alternate solutions may help to avoid ability test disadvantages
Employment experts are debating the value of ability tests because of these two outcomes, with some suggesting they should be abandoned and others saying they are too valuable. At the same time, some analysts say that a diverse workforce has been shown to strengthen companies in several ways beyond avoiding discrimination suits.
Marketing and appealing to consumers can be more effective and less limited to specific market segments with more diverse employee populations, the news source notes. There are often reputational advantages, if nothing else.
One expert told the news source that there may be other ways to address these issues, such as by providing specialized training to employees if they are lacking ability in one area but are otherwise qualified. This could make it easier to hire a diverse, yet skilled workforce.
