Why is a Pre-Hiring Assessment of Potential Employees Important

Pre-hire assessments are gaining popularity in the hiring process. They are a more quantifiable way to evaluate candidates, and nearly 60% of companies use them in the pre-hire process. In addition, these assessments are less expensive and more predictive than single tests.

More Predictive than a Single Test

Pre-hiring assessments of potential employees are highly predictive of future performance and reduce turnover costs. Companies are increasingly using these tests to identify good candidates. An increased talent pool and applications have led to an increased demand for pre-employment skills testing. In 2017, Statista reported that employers conducted nearly two million pre-employment assessments.

While one test can measure some aspects of a person’s personality, a pre-hiring assessment is more likely to identify other factors that will help a potential employee do well in the job. Using tests to measure soft and hard skills is a key part of a strong assessment. Different test types will help you get a fuller picture of a candidate’s profile since each focuses on an individual’s specific aspect.

Improves Performance

A pre-hiring assessment of potential employees is a powerful tool for employers. It helps assess candidates’ soft skills, which are often overlooked in technical roles. It also helps collect data on employee motivation, which can quickly guide hiring decisions. This process is not only time-saving but can also add value to the company.

It can save time and money during the selection process and reduce the time spent training a new employee. Different types of tests can be used for this purpose. These tests analyze a range of qualities, including stress tolerance, emotional resilience, and analytical thinking. The results can show how closely a potential employee matches hiring requirements.

Reduces Costs

Pre-hiring assessments are a great way to reduce costs associated with employee turnover. They can be conducted with various test types and can help companies determine whether a candidate is a good fit for their company. In addition to reducing costs, pre-employment assessments can improve employee satisfaction. In a study by the Aberdeen Group, businesses that use pre-hiring assessments report that their new hires are 36% more satisfied than those who do not.

Organizations have recognized the high cost of bad hires and are now using behavioral assessments to screen potential employees. According to one estimate, a bad hire costs an organization between 16 and 20% of the annual salary for a position up to $50,000. In addition, a bad hire can result in high turnover, which affects company morale and team spirit.

Reduces Time

By measuring the time it takes to hire potential employees, you can find ways to make the process more efficient. One way to do this is to develop a talent brand. Without one, your company will likely fall behind in attracting the best talent. To build a talent brand, you must first understand what makes your company unique from its competitors. Then, it would help if you defined what makes your employees want to work for you. Take a look at your culture and values and the realities your colleagues face each day.

Recruiting is challenging no matter what the labor market. As an HR professional, you are under pressure to produce a return on investment (ROI), so you must ensure your recruiting processes are effective. Developing accurate recruiting metrics can help you increase efficiency, identify bottlenecks, and improve the candidate experience. 

Reduces Training Costs

Pre-hiring assessment of potential employees is an effective way to minimize the cost of training. This is especially useful in technical roles where soft skills are often ignored. Besides, by gathering information about the motivations of prospective employees, the pre-employment assessment also helps companies make quicker decisions. It can save time and effort while adding value to the company. 

Companies need to choose the right employee because an employee with the wrong personality or work style could be detrimental to your business’s growth. Poor personality or job fit can result in lower engagement, decreased productivity, and higher turnover. Even worse, bad hires can cost a company a lot of money.