Many CUs Don't Believe In The HR Tools They Use
Credit union executives continue to use traditional employment tools, like job interviews, despite
At the same time, executives have been slow to embrace newer, alternative methods, including personality and
"Human Resource Testing: What Credit Unions Should Know," by researcher Murray R. Barrick of Tippie College
Barrick surveyed 300 CUs as part of his research and found that managers have little confidence in the predictive
For example, fewer than 40% of CUs believe that interviews help to predict high performers, and fewer than 20%
Compare that to the 73% of respondents currently using personality tests who said they believe such tests are
Among those using turnover tests, 60% reported they are effective reducing turnover.
The development of these kinds of tests has occurred mostly in the last 10 years, according to the analysis.
Barrick found that effective tests are readily available, inexpensive and legally defensible.
Among the newer selection tools Barrick discusses in the monograph are intelligence tests, math ability tests,
But the tests aren't foolproof. There are four conditions required to fully realize these benefits, according to Barrick:
* The credit union must be able to be selective in who it hires.
* The selection tool used must predict actual job performance.
* Performance variability must be greater than zero. (If all applicants would have the same job performance level,
* Credit unions must retain the high-performing employees they hire.
The Barrick study provides insights into each of these newer selection tools, and information on their cost, validity,
When selecting managers from a pool of internal candidates, the CU has information on prior perfomance and work
"The implications for credit union senior management and HR directors are clear," said Bob Hoel, executive director