Friday, April 9, 2010

Why Reliability Matters


"Test-retest reliability" is a buzz phrase in the assessment world. But beyond a lofty scientific term, it is an extremely important concept for you and your business. Understanding reliability is the key to determining which tool will bring you the most ROI.

So, what exactly is test-retest reliability?

Test-retest reliability is the consistency of an assessment's findings over time. In other words, how accurate is the assessment 1 week from now? 5 years from now? 25 years from now? This factor is measured by administering an assessment to a group of people, allowing time to pass (ie. 1 month, 1 year, 5 years) and having the same group of people retake the assessment. If each person receives the same result both times, the test-retest reliability rating is 1.0. If only half of the group receives the same result, the test-retest reliability rating is 0.5...and so on.

Here is a quick example:
If I was given an assessment each year with one question, "What is your first name?" I would have a 1.0 test-retest reliability rating because I would always answer "Emily"...no matter if it is 1 year from now or 30 years from now.

Why is test-retest reliability important?

Test-retest reliability determines the time value of a tool. You could consider it an assessment's expiration date.

An assessment's time value has direct implications to your business decisions. Simply put, the time frame of your decision MUST match the expiration date of the tool. For example, if an assessment is deemed "good for a year" (ie. test-retest reliability drops off significantly after one year), then you do not want to hire someone that you hope to have on your team for 10 years using that assessment.

Need another example? Think back to high school. A teacher from your senior year would never accept a test you took your freshman year. Why? Because, the teacher wants (and should) see four years of growth. Your knowledge-base changed over time, so the test that you aced (or failed) your freshman year no longer applied to you as a senior. 

The implications of time value are also financial. Would you rather pay to assess your team once and have that information apply over the long-term? Or would you rather pay to reassess your team each year and be limited to short term decisions? It's like buying a printer for $100 and paying $75 each year for replacement ink versus buying a printer for $100 with a lifetime supply of ink. No brainer!

What to look for:

When determining what assessment(s) to use in your business -- and this applies to ALL aspects of your business whether it be hiring, team building, team creation, management training, etc -- only use tools with the highest test-retest reliability ratings available. An accepted range is 0.8 to 0.9; anything over is fantastic, anything below is cautionary. And be careful: you must check the reliability over time. Most assessments score a high test-retest reliability rating within a short time frame...but pay attention to those numbers after 6 months, 1 year and 5 years especially. You will find that all but a few assessments experience an extreme drop off in reliability the further out you move on the timeline.

How do you obtain this information?

Just ask for it. Every consultant/assessment company should be more than willing to furnish a full statistical analysis of their tool(s), which needs to include a test-retest reliability study as well as case studies, predictability measurements and validity studies. Ideally, this information is readily available online. If a simple request or basic Google search do not lead you to this information...let that be a red flag. I've never found an organization to hide statistical data that supports its tool.

On a final note, here are links to the test-retest reliability studies of some of the most widely-used assessments.* The results may (or may not) surprise you:

Myers Briggs: Myers Briggs (MBTI) Test Retest Reliability
(see first paragraph of page 4)

DISC: DISC Test Retest Reliability
(see page 2)

Predictive IndexPredictive Index Test Retest Reliability
(see page 27)

*These links lead to conclusions found by the assessment maker and/or from a trusted, third-party researcher. These resources are a start; there is much more information/commentary available on this topic for each assessment listed above and most others.

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