The process of validating any HR tool (a selection test, performance evaluations, developmental plan, etc.) makes sure that it is closely related to actual on-the-job performance. CMI knows that every organization is different. Just because an approach or instrument worked in one organization does not mean that it will work in yours. That is why we validate all of our work, and adjust all products and services to match your organization’s culture, language, and procedures. Think of it this way: a garment that is tailor-made for you will fit better than a garment that claims to have fit others who are about your size. In the same way, a validated program will generally “fit” your organization better, producing more returns on your investment than an “off-the-shelf” program.

For example, an “off-the-shelf” selection test will typically produce a validity coefficient (a statistical measure of how well a test predicts job performance, with a maximum value of 1.0) of around .15. CMI’s validated selection tests, however, have consistently attained validity coefficients 2 to 3 times that level. This improved accuracy helps you make better hiring decisions. This is true for all validated HR programs; validation improves the accuracy of decisions, and more accurate decisions can produce a wide range of benefits.

The return on investment for validation can be great, since a validated program is much more legally defensible than a non-validated program. According to the American Bar Association, employers successfully defend themselves in lawsuits with employees only about 40% of the time (think about it–the most likely result of an employment lawsuit is that your organization will lose!). The average award in these cases is nearly one million dollars. Add to that the legal costs, the time spent in legal activities, the loss of reputation, etc., and you are taking a very expensive chance on a program made for another organization!