Market research firm Aberdeen Group has conducted a survey, Pre-hire Assessments: an Asset for HR in the Age of the Candidate.
The survey finds that businesses that use pre-hire assessments are 36% more likely to be satisfied with their new hires.
Such assessments can help determine skill sets, weak spots, potential incompatibilities as well as a candidate’s ideal working environment.
The survey highlights a statistic from the Society for Human Resources Management which estimates that it can cost employers up to five times a bad hire’s annual salary to replace them.
According to the results, “Best in class” organisations are 45% more likely assess skills and knowledge at the start of the candidate screening process – thus reducing the risk of further expenditure on the re-hiring process.
And the benefits aren’t just for organisations and employers. Aberdeen Group states that new recruits that have been through a pre-hire assessment are 13% more likely to achieve performance goals.
This often translates into more highly engaged staff, and employee engagement in turn translates into lower costs and higher profit per employee.
There are variations on a theme when it comes to selecting the best assessment platform for a particular organisation’s needs. But the study indicates that the crucial factors that recruiters look for in the process are cultural fit and skill sets.
The assessments don’t ‘block’ candidates from a role based on their preferences for cultural fit. But they can help guide recruiters figure out what, if any, additional questions they need to ask at the next stage in the process.
So what’s stopping HR departments using pre-hire assessments more broadly? According to the study, it’s a lack of urgency from senior management, with 36% of respondents citing this as the major obstacle.
Companies need to prove the value of such strategies in-house. Statistics are a powerful tool for a convincing argument. One impressive figure, also taken from the study, finds that businesses using assessments have nearly 40% lower staff turnover.
Pre-hire assessments do work. But, as the results state, to really make a difference, they need more priority from senior management.
The survey has been carried out by Zach Lahey, Research Analyst, Human Capital Management, Aberdeen Group.
The full results can be downloaded here.