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Educational Testing Service

The Educational Testing Service (ETS) is a private nonprofit organization founded in 1947 through the merger of the American Council on Education, the Carnegie Foundation for the Advancement of Teaching, and the College Entrance Examination Board, dedicated to developing, administering, and scoring standardized assessments for educational, professional licensure, and research purposes. Headquartered in Lawrence Township, New Jersey, ETS operates as the world's largest private provider of such services, annually delivering tests to millions of individuals across more than 180 countries. Its core mission emphasizes advancing quality and equity in education via fair, valid assessments grounded in psychometric research, including high-stakes exams like the TOEFL for English proficiency, the GRE for graduate admissions, and the Praxis series for teacher certification. ETS has pioneered advancements in measurement science, such as item response theory, while committing to empirical validation of test fairness, demonstrating that score differences across groups typically reflect genuine variations in measured abilities rather than systematic bias. Despite these efforts, the organization has encountered criticisms regarding potential cultural biases in test content and the implications of score disparities for admissions and policy, prompting ongoing refinements to guidelines for equitable assessment design.

History

Founding and Merger in 1947

The was formed in 1947 by consolidating the testing activities of three nonprofit educational organizations: the (ACE), the Carnegie Foundation for the Advancement of Teaching (CFAT), and the College Entrance Examination Board (CEEB). These entities had independently developed and administered standardized assessments, such as the by the CEEB and graduate admissions tests by the CFAT, but lacked the specialized infrastructure for large-scale operational testing. The merger created a dedicated to psychometric research, test development, and administration, headquartered in , to streamline efforts amid rising post-World War II demand for educational evaluations. ETS received its charter from the New York State Board of Regents in December 1947, with formal operations beginning on January 1, 1948. Initial leadership included figures like Henry Chauncey, who had directed testing for the CEEB, ensuring continuity in assessment practices. The organization inherited responsibilities for major exams, including , the Graduate Record Examinations (GRE) from the CFAT, and cooperative tests from the , thereby centralizing resources for validity, reliability, and in standardized testing. This founding structure emphasized ETS's role as a mission-driven entity focused on advancing through empirical methods, rather than commercial interests, though it operated with fee-based services to sustain operations. By separating testing operations from the broader advocacy roles of its progenitors, ETS positioned itself to respond efficiently to national needs, such as evaluating academic aptitude for expanded access under initiatives like the .

Early Expansion and Standardization Efforts (1940s-1960s)

Following its formation in 1947 through the merger of the College Entrance Examination Board, the Carnegie Foundation for the Advancement of Teaching, and the American Council on Education's Cooperative Test Service, ETS rapidly consolidated testing operations under centralized administration in , with an initial staff of 212 employees and capital under $2 million. The organization assumed responsibility for key exams including for college admissions, the GRE for graduate admissions, the LSAT for law school, and the National Teacher Examinations, enabling streamlined development and scoring via early adoption of machine-readable formats that enhanced efficiency over manual methods. By 1948, approximately 75,000 students participated in college admissions testing administered by ETS, serving over 50 colleges alongside government entities such as the U.S. Atomic Energy Commission and the State Department. Expansion accelerated in the amid postwar increases in educational enrollment, with ETS relocating to a 400-acre on Rosedale in to accommodate growing operations. The SAT's reach broadened, influencing admissions at an expanding array of institutions, while by the roughly 25% of U.S. high school seniors took the exam. ETS introduced the TOEFL in 1964 to standardize English proficiency assessment for non-native speakers seeking U.S. , responding to rising applications. These efforts aligned with federal initiatives like the 1958 , which funded aptitude testing to identify scientific talent amid priorities, thereby integrating ETS assessments into national talent pipelines. Standardization initiatives emphasized psychometric rigor, with ETS researchers advancing score equating—linking SAT scales across forms dating back to 1941—and multiple-choice item design to minimize subjectivity, building on World War II-era precedents like the test. In 1958, ETS began releasing SAT scores to high schools, promoting data-driven counseling and adjustments. Under leaders like Henry Chauncey, the organization prioritized empirical validation of test fairness and for merit-based selection, countering variability in local admissions practices while conducting foundational research in test theory to support scalable, objective measurement. By the late , achievement testing volumes had eclipsed assessments, reflecting ETS's role in shifting toward quantifiable outcomes amid debates on and .

Growth Amid Educational Reforms (1970s-1990s)

During the 1970s, ETS solidified its position as a dominant provider of standardized assessments, including the SAT, GRE, and LSAT, amid rising demands for minimum competency testing driven by educational reforms emphasizing basic skills accountability. Revenues expanded significantly, earning ETS recognition as a growth company by Forbes in 1976, though this period also saw antitrust scrutiny over its near-monopoly in college admissions testing, culminating in New York's Educational Testing Act of 1979, which mandated disclosure of test questions to enhance transparency and reduce perceived secrecy. The act reflected broader reform pressures for fairness in testing practices, as states increasingly tied student promotion and graduation to performance on standardized exams developed or scored by organizations like ETS. In the 1980s, the release of A Nation at Risk in 1983 amplified calls for rigorous evaluation of student outcomes, spurring federal and state initiatives that boosted demand for ETS's assessment tools to measure progress against international benchmarks and combat perceived educational decline. ETS faced its first fiscal deficit in 1980, prompting staff reductions and a 1982 strategic plan to refocus operations, while addressing criticisms of cultural bias in tests and their predictive validity for academic success; in response to test security breaches highlighted by coaching firms like the Princeton Review, ETS reached a 1983 agreement to strengthen protections. These reforms indirectly fueled ETS's expansion, as policymakers relied on its psychometric expertise for emerging accountability systems, though the organization navigated ongoing debates about testing's role in equity versus merit-based selection. The marked accelerated technological and structural growth for , with revenues reaching $300 million in and climbing to $311 million by 1991, supported by operations in over 170 countries. In response to equity concerns and format critiques amid standards-based reforms, ETS revised in , introducing SAT-I (verbal and math reasoning) and SAT-II (subject tests) to better align with shifts toward content mastery. Key innovations included the November 1993 launch of a computerized, adaptive GRE, pioneering in graduate admissions testing, and a 1995 recalibration of SAT scoring to recenter averages around 500 per section based on norms. Heavy investments in computer-based platforms, however, led to annual losses of about $20 million by the late , as ETS adapted to digital demands while maintaining its nonprofit mission amid evolving reform emphases on measurable outcomes.

Organizational Structure and Operations

Governance and Leadership

The Educational Testing Service (ETS) operates as a 501(c)(3) , incorporated on February 20, , by the Board of Regents of the State of to advance and . As a nonprofit, ETS is governed by a Board of Trustees that provides strategic oversight, ensures mission alignment, safeguards financial resources, and appoints the president and chief executive officer. The board's composition reflects expertise in , K-12 schooling, , and , with members selected for their ability to guide on validity, , and global expansion. The current board chair is Dr. Earl Lewis, a and leader affiliated with the . Vice chairs include Mr. Youngsuk Chi of Inc., focused on scholarly publishing, and Dr. Mildred García, system chancellor of the . Other trustees encompass figures such as Jeffrey A. Sine of The Raine Group (a private equity firm), LaVerne Srinivasan of the , and Dr. Candace Thille of , whose collective backgrounds inform decisions on psychometric standards and test fairness. ETS's CEO, Amit Sevak, serves as an ex officio trustee, bridging board policy with operational execution. Operational leadership falls under President and CEO Amit Sevak, who assumed the position on April 1, 2022, succeeding Kurt Landgraf. Sevak oversees approximately 2,500 employees across 200 countries, directing the development and delivery of assessments to over 50 million test-takers annually while emphasizing data-driven innovations in measurement science. Prior to ETS, he founded Mindset Global in 2017 to promote entrepreneurial and held presidencies at universities in , , and , bringing experience in scaling international academic programs. The senior leadership team supports Sevak in functional areas critical to ETS's nonprofit mandate. Jeffrey Melnick, since 2022, manages fiscal strategy and compliance for revenue derived primarily from fees and contracts. Janet Garcia, CEO of PSI Services (ETS's largest subsidiary, acquired to expand credentialing), leads efforts in for 22 million individuals yearly. Recent additions include Rick Sinkfield as Chief Legal Officer and Sharon Strauss as , both appointed in 2024 to strengthen and talent development amid growing global operations. This structure ensures accountability to ETS's core purpose of rigorous, equitable without profit motives overriding empirical validity.

Global Reach and Financial Model

ETS maintains its global operations through a network of offices and subsidiaries spanning multiple continents, with headquarters in , and regional hubs facilitating test delivery and support services. ETS Global B.V., a subsidiary based in , oversees activities in over 80 countries across , , , the , and , including offices in , , , and . The organization supports assessments in more than 180 countries and territories, with tests administered at over 9,000 locations worldwide, enabling millions of candidates to participate in exams like the TOEFL and GRE annually. This infrastructure accommodates remote proctoring and at-home testing options, expanded notably during the to sustain international access. As a 501(c)(3) non-profit entity, ETS derives its revenue predominantly from service fees for test registration, administration, scoring, and reporting, alongside contracts for custom assessment development and research. Fiscal year 2023 revenues totaled $1.058 billion, with operating revenues reaching $1.16 billion in fiscal year 2024, reflecting growth from expanded digital delivery and international demand. Approximately 30% of revenues, or roughly $300 million in 2023, stemmed from partnerships such as College Board contracts for SAT operations, while graduate and English proficiency tests like GRE and TOEFL contributed substantially through per-exam fees averaging $200–$300. Additional income arises from government contracts, including the National Assessment of Educational Progress (NAEP), and licensing agreements, with surpluses directed toward psychometric research, technology investments, and operational costs rather than shareholder distributions. ETS holds tax-exempt status on core educational activities, though it faces scrutiny over executive compensation and market dominance in standardized testing.

Tests and Assessments Administered

Graduate and Professional Exams

The Educational Testing Service (ETS) develops and administers the Graduate Record Examinations (GRE), a suite of assessments used for admissions to graduate, business, and law programs worldwide. The GRE General Test evaluates verbal reasoning, quantitative reasoning, and analytical writing skills, which ETS describes as critical for academic success in these fields. Introduced in 1936 by a consortium of universities and the Carnegie Foundation for the Advancement of Teaching, the GRE has been administered by ETS since 1949, providing a standardized measure to compare applicants irrespective of their undergraduate institutions. The GRE General Test, available in computer-delivered and paper-delivered formats, consists of three sections: an analytical writing task (two essays scored 0-6), (two sections scored 130-170 each), and quantitative reasoning (two sections scored 130-170 each), with a total testing time of about two hours for the shorter version introduced in September 2023. Scores are valid for five years and are accepted by over 1,300 business schools for MBA admissions and an increasing number of law schools as an alternative to the LSAT. ETS reports that the test's design emphasizes for graduate performance, though independent analyses have questioned its correlation with long-term academic outcomes in some disciplines. GRE Subject Tests measure specialized knowledge in , physics, and , assessing undergraduate-level achievement to aid departmental evaluations. Originally paper-based, these tests transitioned to computer delivery starting after April 2023 for , physics, and , with testing windows in September-October and April; the chemistry test was discontinued after April 2023, following earlier discontinuations of and in 2021. Each subject test lasts two hours and yields scores from 200-990, used primarily by programs in fields to identify candidates with advanced preparation. For non-native English speakers pursuing graduate or professional studies, ETS administers the TOEFL iBT, which assesses reading, listening, speaking, and writing abilities in academic contexts. Launched in 1964 by a national council of educators, the TOEFL has evolved from paper-based to computer-based (1998) and internet-based formats, with the current iBT version taking under two hours and scoring each section 0-30 for a total 0-120. It is required by thousands of universities for admissions, particularly for international applicants, with minimum scores varying by institution (e.g., 90-100 for many U.S. graduate programs). ETS validity studies indicate TOEFL scores predict academic success for non-native speakers, though critics note potential cultural biases in question design favoring Western academic norms.

K-12, Teacher Certification, and Policy Assessments

ETS develops and administers customized K-12 student assessment programs, including summative, interim, and formative evaluations designed to align with and standards, enabling data-driven decisions at , and levels. These assessments employ evidence-centered design principles to mirror activities and incorporate innovative elements such as new item types, advanced techniques, and automated scoring for written responses to provide qualitative alongside quantitative scores. Benchmark assessments within these programs track student progress throughout the school year, supporting instructional adjustments, while solutions like modules and formative tools aid teachers in evaluating understanding prior to formal testing. For teacher certification, ETS operates the Praxis series, a suite of over 120 exams assessing basic academic skills, subject-specific knowledge, and pedagogical competencies required for licensure in more than 40 U.S. states and territories. Praxis Core Academic Skills for Educators evaluates reading, writing, and proficiency for entry into teacher preparation programs, while Praxis Subject Assessments cover disciplines from to world languages, with state-specific passing scores and requirements determining certification eligibility. These tests, developed with input from experts, aim to ensure candidates possess the content expertise and teaching skills essential for classroom effectiveness, though adoption varies by jurisdiction, with some states mandating additional performance assessments like the Performance Assessment for School Leaders (PASL) for principals. In the realm of policy assessments, ETS collaborates on the (NAEP), the sole ongoing, nationally representative evaluation of U.S. student performance across subjects like reading, , and , providing benchmarks that inform federal and state policies without individual student stakes. The organization's Policy Evaluation and Research Center conducts studies on assessment quality, equity, and systemic factors influencing outcomes, contributing to frameworks that guide standards-based reforms and address disparities in access to . Through these efforts, ETS supports policy development by analyzing assessment data to evaluate program effectiveness and recommend evidence-based improvements, emphasizing alignment between testing practices and broader educational goals.

Recent Innovations and Acquisitions (2020s)

In the early 2020s, ETS expanded its portfolio through strategic acquisitions aimed at enhancing its offerings in admissions, workforce credentials, and student success platforms. On November 15, 2021, ETS acquired a majority stake in Kira Talent, a Toronto-based company providing a holistic admissions platform that integrates video interviews, written responses, and AI-driven analytics to evaluate applicants beyond traditional metrics. This move supported ETS's growth in global solutions by incorporating for more comprehensive candidate assessment. Subsequent acquisitions in 2024 further diversified ETS's capabilities into and . In January 2024, ETS completed the acquisition of PSI Services, a provider of and exams, enabling ETS to extend its reach into workforce development and regulatory testing markets previously dominated by specialized vendors. Later that year, in May, ETS acquired the (MTC), a nonprofit promoting mastery-based transcripts that emphasize demonstrated competencies over traditional grades, aligning with shifts toward skills-oriented educational records. On October 9, 2024, ETS acquired Ribbon Education, an AI-powered platform for tracking student progress and connecting outcomes to career pathways, bolstering ETS's tools for bridging and . These transactions, totaling four major deals since , reflected ETS's pivot toward integrated, technology-enabled solutions amid declining demand for standardized admissions tests. Parallel to acquisitions, ETS advanced innovations in assessment design and skills measurement. From 2022 to 2026, ETS collaborated with the , ASCOT, and on PISA-VET, the first large-scale targeting and training (VET) skills in areas like digital competencies and problem-solving, with a framework launched in March 2024 to pilot comparable metrics across countries. In April 2024, ETS released a report envisioning future assessments that prioritize adaptive, skills-based evaluations to support and , emphasizing real-world applicability over rote testing. August 2024 saw the publication of research on assessing digital and AI literacies, addressing challenges like generative AI's impact on traditional validity through hybrid human-AI evaluation models. By 2025, ETS introduced tools like the beta version of Futurenav Compass in , an AI-assisted platform linking student data to career opportunities, and proposed five innovations for the (NAEP), including faster digital formats and real-world task integration to better gauge future readiness. These developments, alongside the 2025 Human Progress Report highlighting trends in skills crediting and technical hiring, underscored ETS's emphasis on evidence-based, forward-looking metrics amid evolving labor markets.

Research and Scientific Contributions

Psychometric Advancements

The Educational Testing Service (ETS) has pioneered key developments in , notably co-inventing (IRT), a framework that models the probability of a correct response as a function of latent trait levels rather than relying solely on total test scores. Early foundational work on IRT occurred at ETS in the 1950s, led by researchers Frederic M. Lord and Bert F. Green, who addressed limitations in by enabling item-level calibration and ability estimation invariant to test form. Lord's 1968 collaboration with Melvin R. Novick produced Statistical Theories of Mental Test Scores, which formalized Bayesian and maximum likelihood approaches to IRT parameter estimation, influencing large-scale testing programs worldwide. ETS advanced test equating and linking s under IRT to ensure score comparability across administrations and forms, including kernel smoothing techniques refined by Paul W. Holland and others in the 1980s. The organization also developed the (DIF) procedure in the 1970s–1980s to statistically detect items that perform differently across subgroups after controlling for ability, enhancing fairness in assessments like and GRE. Complementary contributions include the Angoff for setting, introduced in the 1970s by ETS psychometrician William H. Angoff, which uses expert judgments to establish cut scores based on item difficulty estimates. In , ETS researchers refined true score models, reliability estimation accounting for item sampling variability, and standard errors of measurement, as detailed in works by Lord and subsequent analyses of group differences and . These efforts extended to modern validity theory, integrating evidence from test content, response processes, and consequences to support construct interpretation. More recently, has applied IRT to computer-adaptive testing, as in the GRE since 1999, and incorporated for automated scoring while maintaining psychometric rigor.

Policy and Fairness Research

The Policy Evaluation and Research Center (PERC) at conducts and disseminates focused on quality and equity in , including analyses of educational policies and their impacts on diverse learner groups. This work encompasses evaluations of large-scale assessments as tools for , highlighting both their potential to inform decision-making and inherent limitations in capturing complex educational outcomes. has emphasized fairness through dedicated standards and guidelines, such as the ETS Standards for Quality and Fairness, which establish criteria for , validity, and minimization across seven key areas including test development and scoring. In 2022, ETS released updated Guidelines for Developing Fair Tests and Communications, which operationalize the organization's mission to provide fair and valid assessments by detailing procedures for identifying and mitigating potential sources of in test content, administration, and interpretation. These guidelines prioritize empirical methods like analysis to ensure equitable performance across demographic subgroups, drawing on psychometric data from ETS-administered exams. Complementing this, the and Education Research Center utilizes large-scale assessment data and surveys to produce peer-reviewed reports on skill acquisition, outcomes, and inequities, such as disparities in adult skills across countries. For instance, a 2025 report examined strategies for raising adult skills in the United States, linking policy interventions to measurable gains based on international benchmarks. ETS has also advanced fairness methodologies through score equity assessment (SEA), a technique to evaluate whether test scores function equivalently across groups, as demonstrated in studies of the TOEIC exam's performance consistency among Japanese test-takers. In January 2020, ETS established the Institute for Research on Fairness and Equity to probe root causes of educational inequalities using innovative methodologies, aiming to influence policy toward more equitable outcomes. This initiative builds on decades of contributions to policy promoting , including historical analyses of assessments' role in addressing systemic barriers. Such efforts underscore ETS's integration of fairness into operational standards, though empirical validation remains tied to internal psychometric validations rather than independent audits in many cases.

Educational and Societal Impact

Role in

The facilitates merit-based selection in primarily through its development and administration of standardized assessments like the Graduate Record Examinations (GRE) and Test of English as a Foreign Language (TOEFL), which provide quantifiable measures of , , and for graduate, professional, and international admissions. These tests enable admissions processes to evaluate applicants on demonstrated abilities rather than solely on credentials that may vary by institution or region, allowing for cross-comparable rankings that prioritize intellectual capacity over extraneous factors. For instance, over 1,000 graduate programs worldwide use GRE scores to identify candidates likely to succeed academically, with the test's quantitative and verbal sections correlating with first-year graduate GPA at levels exceeding 0.30 in validity coefficients from large-scale studies. Empirical evidence underscores the GRE's role in objective selection, as meta-analyses of over 100 studies demonstrate its for long-term outcomes such as degree completion and research productivity, often outperforming undergraduate GPA due to the latter's susceptibility to and differing academic rigor across institutions. In merit-based financial aid allocation, universities frequently employ GRE scores as a for scholarships; a survey of admissions directors found that high scores signal potential for advanced study, influencing awards totaling millions annually in competitive fields like . Similarly, the TOEFL supports meritocratic access for non-native English speakers by proficiency evaluation, with scores predicting academic performance in English-taught programs and enabling selection of qualified applicants from diverse linguistic backgrounds—over 11,000 institutions in 160 countries rely on it for this purpose as of 2023. This mitigates advantages from privileged networks or subjective interviews, promoting selection based on verifiable . ETS's contributions extend to policy contexts where tests identify high-potential students from underrepresented socioeconomic groups, countering holistic reviews that may undervalue objective metrics; research indicates standardized scores help flag academically prepared applicants overlooked by non-cognitive criteria. However, ETS maintains that such assessments must be interpreted alongside other data for holistic yet evidence-driven decisions, with ongoing validity research ensuring alignment with success predictors like cumulative GPA over multiple years. Through these mechanisms, ETS underpins systems where selection reflects causal links between tested skills and educational outcomes, rather than unverified proxies.

Influence on Policy and International Education

ETS's policy research has informed U.S. education reforms by emphasizing data-driven and standards-based systems, contributing to policies that tie student testing outcomes to school evaluations and funding decisions. For over seven decades, the organization has produced reports and analyses focused on equal educational opportunity, from through adulthood, which have shaped debates on access and equity in public schooling. Key contributions include the development of assessments aligned with federal initiatives, such as those supporting No Child Left Behind's expansion of standardized testing for , where ETS's psychometric expertise helped establish benchmarks for proficiency. Policy Information Reports, like "Facing the Hard Facts: A View of American Public Education Today," have critiqued systemic challenges in and , urging policymakers to prioritize evidence-based interventions over unproven approaches. The Gordon Commission, convened by in 2013, issued recommendations for 21st-century assessments that balance cognitive skills with non-cognitive factors, influencing ongoing discussions on reauthorizing the . Internationally, ETS advances through assessments like the TOEFL, which is required for admissions by more than 11,000 universities in over 150 countries, standardizing English proficiency evaluation and enabling cross-border academic mobility for millions of non-native speakers. Partnerships, such as with the Institute of International Education (IIE), have distributed TOEFL tests in regions like , , and , supporting local governments in aligning language training with global workforce needs. In 2022, ETS was contracted by the to develop and maintain the digital platform for the PISA-based Test for Schools through 2029, facilitating international comparisons of student performance and informing national curricula reforms in participating countries. 's global research on fairness and measurement validity, disseminated via collaborations with entities like the , guides policies on integration in education and equitable access to higher learning, emphasizing empirical validation over ideological priorities.

Criticisms and Controversies

Claims of Cultural and Predictive Bias

Critics have alleged that ETS-developed tests, such as the SAT and GRE, exhibit by incorporating content and question formats that assume familiarity with middle-class, predominantly white American cultural norms, potentially disadvantaging minority test-takers. For instance, historical SAT analogies, like pairing "" with "regatta" rather than "paddle" with "canoe," have been cited as favoring those with exposure to , a associated with affluent communities, though ETS revised such items following scrutiny. These claims often extend to and reading passages presumed to reflect Eurocentric perspectives, with some studies suggesting performance variations of 30-40% tied to cultural relevancy of content. However, ETS maintains that such items are pre-tested for (DIF), where performance gaps across groups are analyzed after controlling for overall ability, and biased items are removed; analyses since the have shown minimal cultural loading in final test forms. Regarding predictive bias, detractors argue that ETS tests overpredict academic success for underrepresented minorities, implying inflated expectations or unequal validity across racial groups, as evidenced by persistent score gaps correlating with lower college GPAs or graduation rates for Black and Hispanic students. Stereotype threat—where awareness of negative group stereotypes impairs performance—has been invoked to explain subgroup differences, with experiments showing score drops when racial identity is primed before testing. Empirical investigations, including ETS's own longitudinal studies across 13 integrated colleges, have found no significant differential prediction: SAT scores correlated similarly with freshman GPA for Black and White students (r ≈ 0.35-0.45 for both groups), rejecting claims of overprediction for minorities. Broader meta-analyses confirm that cognitive tests like the SAT maintain for outcomes such as college performance across racial/ethnic lines, with gaps attributable to pre-existing academic preparation rather than test artifacts. ETS has addressed these concerns through ongoing psychometric , including adversarial hypothesis testing to falsify claims and fairness audits that prioritize empirical validity over adjustments. Recent reinforce that standardized tests exhibit less subgroup disparity in than alternatives like high school GPA, which suffers from varying by school demographics. While score disparities persist—e.g., 2023 SAT averages of 908 for Black students versus 1095 for Whites—they align with socioeconomic and preparatory factors, not inherent test unfairness, as validated by regression discontinuity designs controlling for applicant pools. Critics' reliance on without causal evidence of has been challenged in peer-reviewed work, emphasizing that true fairness requires equal , which ETS tests demonstrate.

Test Security, Cheating, and Operational Issues

The has faced significant challenges in maintaining test security, particularly with international administrations of exams like the TOEFL and GRE, where proxy testing and organized rings have led to widespread score invalidations. In response to detected irregularities, ETS employs voice analysis, biometric checks, and monitoring to flag potential impersonation or unauthorized aid, resulting in thousands of annual cancellations globally. However, these efforts have not prevented high-profile scandals, including a 200% increase in TOEFL and GRE score cancellations attributed to suspicions between 2019 and 2022, often linked to sophisticated operations in regions like involving remote and hired proxies. A prominent case involved ETS's TOEIC exams used for UK visa purposes from 2011 to 2014, where proxy test-taking and remote control of testing computers were rampant at certain centers. ETS's voice recognition software identified identical voice patterns across multiple test-takers, flagging over 47,000 suspicious results out of approximately 250,000 tests; this evidence prompted the Home Office to cancel visas for around 35,000 individuals, deport over 2,500, and force at least 7,200 others to leave the country. While ETS internal reports had noted organized fraud years earlier, the scale of the operation— including 25 convictions from undercover investigations—highlighted vulnerabilities in overseas test center oversight, though subsequent appeals succeeded for over 3,700 cases by 2019 due to data reliability concerns. Operational issues have also undermined ETS's reliability, notably in the 2003–2004 administration of the Principles of Learning and Teaching exam for teacher certification. ETS applied overly stringent grading to a multiple-choice , resulting in inaccurate scores for approximately 27,000 to 40,000 test-takers, with 4,100 wrongly reported as failing and facing delayed hiring or career setbacks in multiple states. The errors stemmed from flawed equating procedures between test forms, prompting a class-action that ETS settled for $11.1 million in 2006, including funds for retesting and damages, amid criticism of inadequate quality controls in high-stakes scoring. More recent at-home proctored versions of TOEFL and GRE have encountered security breaches, such as unauthorized software detection leading to abrupt test terminations and score voids, exacerbating access issues for legitimate test-takers in regions with poor infrastructure. ETS's post-incident reviews, including and , have upheld many cancellations, but persistent reports of cheating rings—particularly in and —underscore ongoing enforcement gaps despite referrals to and lifetime bans for confirmed violators.

Responses to Declining Demand and Policy Shifts

In the early 2020s, ETS faced declining participation in its core assessments amid widespread adoption of test-optional admissions policies by U.S. institutions following the , with GRE test-takers dropping from 541,750 in 2017 to 341,574 in 2021 and further to 319,101 for the July 2022–June 2023 period, reflecting a 6.6% year-over-year decrease. TOEFL registrations also showed signs of softening, influenced by shifts in mobility and alternative English proficiency options. To address operational pressures from reduced revenue, ETS implemented multiple rounds of staff reductions, including a "massive downsizing" announced in June —the second major cut within a year and fifth over the prior decade—affecting hundreds of employees as the organization sought to streamline costs. ETS responded to candidate fatigue and competition by shortening the GRE General Test, launching a in 2023 that reduced duration from nearly four hours to under two hours, eliminated the unscored section and one Analytical Writing task, and decreased the number of questions while maintaining score comparability through psychometric adjustments. This change aimed to lower barriers to participation and accelerate score reporting, with ETS reporting no impact on for graduate admissions outcomes. Concurrently, for TOEFL, ETS planned a score scale update effective January 2026 to refine speaking subscores in half-point increments, enhancing granularity for institutional use amid evolving proficiency requirements. Facing policy-driven erosion of standardized testing mandates, ETS pursued diversification through targeted acquisitions under CEO Amit Sevak, who assumed leadership in 2022, shifting toward skills-based and competency-focused assessments. Key moves included acquiring Wheebox in September 2023 for AI-driven remote proctoring and skills testing, in January 2024 to bolster workforce certification and licensure services, a majority stake in Kira Talent for holistic admissions platforms, the to integrate competency-based transcripts with ETS skills tools, and Ribbon Education in October 2024 to expand student success analytics. In 2020, ETS established Strategic Capital, an investment arm to fund edtech ventures in assessment and learning beyond traditional exams, targeting K-12, , and corporate sectors. These efforts positioned ETS to capture demand in non-degree credentialing and global proctoring, areas less vulnerable to admissions policy volatility. ETS also engaged directly with test-optional trends by commissioning research highlighting a post-pandemic "pendulum swing" toward reinstating requirements at institutions like and Yale, citing evidence that submitted scores predict academic success and boost admission odds even under flexible policies. CEO Sevak advocated for "" models integrating ongoing skills evaluation with AI-disrupted credentials, as discussed in a 2025 podcast, to adapt to skepticism over one-time exams while defending merit-based selection against equity critiques that empirical data shows test-optional policies do not uniformly advance underrepresented enrollment.

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