For more and more companies, the hiring boss is an algorithm. The factors they consider are different than what applicants have come to expect. Jobs that were once filled on the basis of work history and interviews are left to personality tests and data analysis, as employers aim for more than just a hunch that a person will do the job well. Under pressure to cut costs and boost productivity, employers are trying to predict specific outcomes, such as whether a prospective hire will quit too soon, file disability claims or steal.
Personality tests have a long history in hiring. What's new is the scale. Powerful computers and more sophisticated software have made it possible to evaluate more candidates, amass more data and peer more deeply into applicants' personal lives and interests.
The new hiring tools are part of a broader effort to gather and analyze employee data. Globally, spending on so-called talent-management software rose to $3.8 billion in 2011, up 15% from 2010, according to research firm Gartner.
It isn't just big companies that are turning to software for hiring help. Richfield Management LLC, a Flint, Mich., waste-disposal firm that employs 200 garbage collectors, was looking for ways to screen out applicants who were likely to get hurt and abuse workers' compensation.
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