Hiring Assessments: Are They Right For You?
Let’s talk about your hiring process. What does it look like? It probably consists of an application of some sort, an interview or two, a background check, and a salary negotiation. Does it also include a hiring assessment? If not, you could be losing money.
We’ve all heard the staggering statistics about the cost of a bad hire. Yet, we change very little. We continue to use the same hiring practices we have always used because we believe it’s the only way. But answer this: how many bad hires has your company had in the last year?
Let’s do the math.
(Don’t worry, we’ll do it for you.)
The Department of Labor estimates the cost is 30% of a person’s annual salary. And the average salary of an employee in the Midwest is roughly $50,000. Maybe you’re from a smaller organization and you only had one bad hire last year. Not too shabby, right? But that one bad hire cost your company $15,000. Or maybe you’re from a larger organization and your company had three bad hires over the last year. So, three people who started and quit (or were fired) in one year costs your company a total of $45,000. Whether it’s $15,000 or $45,000, that’s a lot of money to throw away.
Here’s how a hiring assessment can help.
Hiring assessments are one of the most objective and predictive ways to forecast future success in a position. If used correctly, you’ll be able to see which candidates have the skills necessary to perform in a particular position. And which candidates fall short.
“The cost of a hiring assessment far outweighs the risk you’ll take on a potential bad hire.”
Assessments can also provide insight to use during the interview process. If you’re having trouble deciding between two good candidates, use the assessment to help you dive a little deeper. And ask questions to drill down on critical success factors.
And lastly, they’ll save you money. A good hiring assessment usually costs around $200-$250. You’re probably thinking, “Wow, that’s a lot of money to spend on a candidate.” But, remember the 15,000 wasted dollars we talked about? The cost of a hiring assessment far outweighs the risk you’ll take on a potential bad hire.
How do you know if you have a good hiring assessment?
We’ve seen many companies use simple personality assessments or even skills assessments as a part of their process. Each of these different assessments measure one specific area, and each comes with its own cost. But few use a true hiring assessment. A good assessment meets the following three criteria:
“A true assessment not only provides tools to help during the interview but also provides insight for managers and coaches and how to best work with the potential employee moving forward.”
It measures the total person. In an objective way. The assessment you use should give you quantifiable results that remove biases and subjectivity that can occur when multiple people are involved. They measure not only thinking (or cognitive) skills, but interests outside the job, critical performance areas, and may even include a little insight on personality.
It provides information you can use before and after the hire. We’ve seen so many people who use an assessment for the initial hire and then add it to the employee’s file…never to be seen again. But what if you could use that same assessment as a means for coaching, improvement, and succession planning? A true assessment not only provides tools to help during the interview but also provides insight for managers and coaches and how to best work with the potential employee moving forward.
It is validated for hiring use. According to an article published by SHRM, “employers must ensure that any selection tests are reliable and valid, yielding consistent results that predict success on the job; if not, discrimination claims are likely to ensue.” Personality tests bring about the most controversy when a hiring decision is challenged, and for good reason. A candidate’s personality alone cannot predict success in a position. As human beings, we learn to adapt; to adjust for situations, regardless of our personality (though some may adjust better than others). Any assessment product you choose to use should include validation studies and statistical documentation to provide evidence that the test does predict and measure success on the job.
Every organization is different.
Their positions are different. Their operating procedures are different. And so is their hiring process. But the one thing we know is that people are people; they all have biases and make unconscious judgments about others. Implementing a hiring assessment is just another way to make your process a little less subjective and a little more efficient. That’s the bottom line.
Don’t wait! Click here to request a hiring assessment.