Which method for assessing validity involves giving a measure to applicants then correlating it with some criterion at a later time?

Criterion validity is the most powerful way to establish a pre-employment test’s validity. Also called concrete validity, criterion validity refers to a test’s correlation with a concrete outcome. In the case of pre-employment tests, the two variables being compared most frequently are test scores and a particular business metric, such as employee performance or retention rates.

The relationship between test performance and a business metric can be quantified by a correlation coefficient (ranging from -1.0 to +1.0), which can be used to demonstrate how strongly correlated two variables are depending on how close the number is to -1.0 or +1.0. The more correlated the two variables are, the more predictive validity the test has. In the case of pre-employment testing, the more correlated test scores are with job performance, the more likely the test is to predict future job performance. And as with most correlations, criterion validity can only be established with large sample sizes, making it somewhat challenging to measure.

There are two main types of criterion validity: concurrent validity and predictive validity. Concurrent validity is determined by comparing tests scores of current employees to a measure of their job performance. Comparing test scores with current performance ratings demonstrates how correlated the test is for current employees in a particular position. For example, a company could administer a sales personality test to its sales staff to see if there is an overall correlation between their test scores and a measure of their productivity.

Predictive validity, however, is determined by seeing how likely it is that test scores predict future job performance. If an employer's selection testing program is truly job-related, it follows that the results of its selection tests should accurately predict job performance. In other words, there should be a positive correlation between test scores and future job performance. Determining predictive validity is a long-term process that involves testing job candidates and then comparing their test scores to a measure of their job performance after they have occupied their positions for a long period of time.

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Test reliability and validity are two technical properties of a test that indicate the quality and usefulness of the test. These are the two most important features of a test. You should examine these features when evaluating the suitability of the test for your use. This chapter provides a simplified explanation of these two complex ideas. These explanations will help you to understand reliability and validity information reported in test manuals and reviews and use that information to evaluate the suitability of a test for your use.

Chapter Highlights

1. What makes a good test?
2. Test reliability
3. Interpretation of reliability information from test manuals and reviews
4. Types of reliability estimates
5. Standard error of measurement
6. Test validity
7. Methods for conducting validation studies
8. Using validity evidence from outside studies
9. How to interpret validity information from test manuals and independent reviews.

Principles of Assessment Discussed Use only reliable assessment instruments and procedures. Use only assessment procedures and instruments that have been demonstrated to be valid for the specific purpose for which they are being used. Use assessment tools that are appropriate for the target population.

What makes a good test?

• The test measures what it claims to measure consistently or reliably. This means that if a person were to take the test again, the person would get a similar test score.
• The test measures what it claims to measure. For example, a test of mental ability does in fact measure mental ability, and not some other characteristic.
• The test is job-relevant. In other words, the test measures one or more characteristics that are important to the job.
• By using the test, more effective employment decisions can be made about individuals. For example, an arithmetic test may help you to select qualified workers for a job that requires knowledge of arithmetic operations.

Test reliability

How do we account for an individual who does not get exactly the same test score every time he or she takes the test? Some possible reasons are the following:

• Test taker's temporary psychological or physical state. Test performance can be influenced by a person's psychological or physical state at the time of testing. For example, differing levels of anxiety, fatigue, or motivation may affect the applicant's test results.
• Environmental factors. Differences in the testing environment, such as room temperature, lighting, noise, or even the test administrator, can influence an individual's test performance.
• Test form. Many tests have more than one version or form. Items differ on each form, but each form is supposed to measure the same thing. Different forms of a test are known as parallel forms or alternate forms. These forms are designed to have similar measurement characteristics, but they contain different items. Because the forms are not exactly the same, a test taker might do better on one form than on another.
• Multiple raters. In certain tests, scoring is determined by a rater's judgments of the test taker's performance or responses. Differences in training, experience, and frame of reference among raters can produce different test scores for the test taker.

Principle of Assessment: Use only reliable assessment instruments and procedures. In other words, use only assessment tools that provide dependable and consistent information.

Reliable assessment tools produce dependable, repeatable, and consistent information about people. In order to meaningfully interpret test scores and make useful employment or career-related decisions, you need reliable tools. This brings us to the next principle of assessment.

Interpretation of reliability information from test manuals and reviews

The reliability of a test is indicated by the reliability coefficient. It is denoted by the letter "r," and is expressed as a number ranging between 0 and 1.00, with r = 0 indicating no reliability, and r = 1.00 indicating perfect reliability. Do not expect to find a test with perfect reliability. Generally, you will see the reliability of a test as a decimal, for example, r = .80 or r = .93. The larger the reliability coefficient, the more repeatable or reliable the test scores. Table 1 serves as a general guideline for interpreting test reliability. However, do not select or reject a test solely based on the size of its reliability coefficient. To evaluate a test's reliability, you should consider the type of test, the type of reliability estimate reported, and the context in which the test will be used.

Table 1. General Guidelines for

Types of reliability estimates

The discussion in Table 2 should help you develop some familiarity with the different kinds of reliability estimates reported in test manuals and reviews.

Table 2. Types of Reliability Estimates

• Test-retest reliability indicates the repeatability of test scores with the passage of time. This estimate also reflects the stability of the characteristic or construct being measured by the test.Some constructs are more stable than others. For example, an individual's reading ability is more stable over a particular period of time than that individual's anxiety level. Therefore, you would expect a higher test-retest reliability coefficient on a reading test than you would on a test that measures anxiety. For constructs that are expected to vary over time, an acceptable test-retest reliability coefficient may be lower than is suggested in Table 1.
• Alternate or parallel form reliability indicates how consistent test scores are likely to be if a person takes two or more forms of a test.

  A high parallel form reliability coefficient indicates that the different forms of the test are very similar which means that it makes virtually no difference which version of the test a person takes. On the other hand, a low parallel form reliability coefficient suggests that the different forms are probably not comparable; they may be measuring different things and therefore cannot be used interchangeably.

• Inter-rater reliability indicates how consistent test scores are likely to be if the test is scored by two or more raters.On some tests, raters evaluate responses to questions and determine the score. Differences in judgments among raters are likely to produce variations in test scores. A high inter-rater reliability coefficient indicates that the judgment process is stable and the resulting scores are reliable.Inter-rater reliability coefficients are typically lower than other types of reliability estimates. However, it is possible to obtain higher levels of inter-rater reliabilities if raters are appropriately trained.
• Internal consistency reliability indicates the extent to which items on a test measure the same thing.A high internal consistency reliability coefficient for a test indicates that the items on the test are very similar to each other in content (homogeneous). It is important to note that the length of a test can affect internal consistency reliability. For example, a very lengthy test can spuriously inflate the reliability coefficient.Tests that measure multiple characteristics are usually divided into distinct components. Manuals for such tests typically report a separate internal consistency reliability coefficient for each component in addition to one for the whole test.

  Test manuals and reviews report several kinds of internal consistency reliability estimates. Each type of estimate is appropriate under certain circumstances. The test manual should explain why a particular estimate is reported.

Standard error of measurement

The SEM is a useful measure of the accuracy of individual test scores. The smaller the SEM, the more accurate the measurements.

When evaluating the reliability coefficients of a test, it is important to review the explanations provided in the manual for the following:

• Types of reliability used. The manual should indicate why a certain type of reliability coefficient was reported. The manual should also discuss sources of random measurement error that are relevant for the test.
• How reliability studies were conducted. The manual should indicate the conditions under which the data were obtained, such as the length of time that passed between administrations of a test in a test-retest reliability study. In general, reliabilities tend to drop as the time between test administrations increases.
• The characteristics of the sample group. The manual should indicate the important characteristics of the group used in gathering reliability information, such as education level, occupation, etc. This will allow you to compare the characteristics of the people you want to test with the sample group. If they are sufficiently similar, then the reported reliability estimates will probably hold true for your population as well.

Test validity

• Validity tells you if the characteristic being measured by a test is related to job qualifications and requirements.
• Validity gives meaning to the test scores. Validity evidence indicates that there is linkage between test performance and job performance. It can tell you what you may conclude or predict about someone from his or her score on the test. If a test has been demonstrated to be a valid predictor of performance on a specific job, you can conclude that persons scoring high on the test are more likely to perform well on the job than persons who score low on the test, all else being equal.
• Validity also describes the degree to which you can make specific conclusions or predictions about people based on their test scores. In other words, it indicates the usefulness of the test.

Principle of Assessment: Use only assessment procedures and instruments that have been demonstrated to be valid for the specific purpose for which they are being used.

A test's validity is established in reference to a specific purpose; the test may not be valid for different purposes. For example, the test you use to make valid predictions about someone's technical proficiency on the job may not be valid for predicting his or her leadership skills or absenteeism rate. This leads to the next principle of assessment.

Similarly, a test's validity is established in reference to specific groups. These groups are called the reference groups. The test may not be valid for different groups. For example, a test designed to predict the performance of managers in situations requiring problem solving may not allow you to make valid or meaningful predictions about the performance of clerical employees. If, for example, the kind of problem-solving ability required for the two positions is different, or the reading level of the test is not suitable for clerical applicants, the test results may be valid for managers, but not for clerical employees.

Test developers have the responsibility of describing the reference groups used to develop the test. The manual should describe the groups for whom the test is valid, and the interpretation of scores for individuals belonging to each of these groups. You must determine if the test can be used appropriately with the particular type of people you want to test. This group of people is called your target population or target group.

Principle of Assessment: Use assessment tools that are appropriate for the target population.

Recall that the Uniform Guidelines require assessment tools to have adequate supporting evidence for the conclusions you reach with them in the event adverse impact occurs. A valid personnel tool is one that measures an important characteristic of the job you are interested in. Use of valid tools will, on average, enable you to make better employment-related decisions. Both from business-efficiency and legal viewpoints, it is essential to only use tests that are valid for your intended use.

In order to be certain an employment test is useful and valid, evidence must be collected relating the test to a job. The process of establishing the job relatedness of a test is called validation.

Methods for conducting validation studies

• Criterion-related validation requires demonstration of a correlation or other statistical relationship between test performance and job performance. In other words, individuals who score high on the test tend to perform better on the job than those who score low on the test. If the criterion is obtained at the same time the test is given, it is called concurrent validity; if the criterion is obtained at a later time, it is called predictive validity.
• Content-related validation requires a demonstration that the content of the test represents important job-related behaviors. In other words, test items should be relevant to and measure directly important requirements and qualifications for the job.
• Construct-related validation requires a demonstration that the test measures the construct or characteristic it claims to measure, and that this characteristic is important to successful performance on the job.

Professionally developed tests should come with reports on validity evidence, including detailed explanations of how validation studies were conducted. If you develop your own tests or procedures, you will need to conduct your own validation studies. As the test user, you have the ultimate responsibility for making sure that validity evidence exists for the conclusions you reach using the tests. This applies to all tests and procedures you use, whether they have been bought off-the-shelf, developed externally, or developed in-house.

Validity evidence is especially critical for tests that have adverse impact. When a test has adverse impact, the Uniform Guidelines require that validity evidence for that specific employment decision be provided.

The particular job for which a test is selected should be very similar to the job for which the test was originally developed. Determining the degree of similarity will require a job analysis. Job analysis is a systematic process used to identify the tasks, duties, responsibilities and working conditions associated with a job and the knowledge, skills, abilities, and other characteristics required to perform that job.

Job analysis information may be gathered by direct observation of people currently in the job, interviews with experienced supervisors and job incumbents, questionnaires, personnel and equipment records, and work manuals. In order to meet the requirements of the Uniform Guidelines, it is advisable that the job analysis be conducted by a qualified professional, for example, an industrial and organizational psychologist or other professional well trained in job analysis techniques. Job analysis information is central in deciding what to test for and which tests to use.

Using validity evidence from outside studies

The Uniform Guidelines, the Standards, and the SIOP Principles state that evidence of transportability is required. Consider the following when using outside tests:

• Validity evidence. The validation procedures used in the studies must be consistent with accepted standards.
• Job similarity. A job analysis should be performed to verify that your job and the original job are substantially similar in terms of ability requirements and work behavior.
• Fairness evidence. Reports of test fairness from outside studies must be considered for each protected group that is part of your labor market. Where this information is not available for an otherwise qualified test, an internal study of test fairness should be conducted, if feasible.
• Other significant variables. These include the type of performance measures and standards used, the essential work activities performed, the similarity of your target group to the reference samples, as well as all other situational factors that might affect the applicability of the outside test for your use.

How to interpret validity information from test manuals and independent reviews

In evaluating validity information, it is important to determine whether the test can be used in the specific way you intended, and whether your target group is similar to the test reference group.

Test manuals and reviews should describe

• Available validation evidence supporting use of the test for specific purposes. The manual should include a thorough description of the procedures used in the validation studies and the results of those studies.
• The possible valid uses of the test. The purposes for which the test can legitimately be used should be described, as well as the performance criteria that can validly be predicted.
• The sample group(s) on which the test was developed. For example, was the test developed on a sample of high school graduates, managers, or clerical workers? What was the racial, ethnic, age, and gender mix of the sample?
  
• The group(s) for which the test may be used.

Table 3. General Guidelines for Interpreting Validity Coefficients

• level of adverse impact associated with your assessment tool
  
• selection ratio (number of applicants versus the number of openings)
  
• cost of a hiring error
  
• cost of the selection tool
  
• probability of hiring qualified applicant based on chance alone.
  

Scenario OneYou are in the process of hiring applicants where you have a high selection ratio and are filling positions that do not require a great deal of skill. In this situation, you might be willing to accept a selection tool that has validity considered "likely to be useful" or even "depends on circumstances" because you need to fill the positions, you do not have many applicants to choose from, and the level of skill required is not that high. Now, let's change the situation.

Scenario Two

Scenario Three

When properly applied, the use of valid and reliable assessment instruments will help you make better decisions. Additionally, by using a variety of assessment tools as part of an assessment program, you can more fully assess the skills and capabilities of people, while reducing the effects of errors associated with any one tool on your decision making.

A document by the:

U.S. Department of LaborEmployment and Training Administration

1999