A bad hire, especially for a managerial or executive position, can be a serious setback for employers. Even if human resource professionals are diligent in their interviews, sometimes an unqualified candidate can talk his or her way into a position they’re not ready for. When this happens, the company loses money because of reduced productivity, not to mention the costs of training, HR and interviewing. The National Business Research Institute found that one bad hiring decision can set a company back anywhere from $25,000 to $300,000, depending on the industry and position of the employee.
Few companies can afford to make these costly mistakes, and that’s why developing and implementing a smart hiring process is essential. Talent assessments are a valuable tool to HR departments, as they can help to make objective decisions about potential employees. Some professionals question whether such assessments are worth their costs, but there is a wealth of information that suggests talent screening may be worth every penny.
Predicting job performance
Behavioral characteristics and relevant skills are two important considerations that HR professionals should make during the hiring process. However, job applicants are becoming more skilled at interviewing and giving answers that employers want to hear. Whether this deception is intentional or not, it is still a factor that hiring managers should take into account. Interviewers should follow up on references and conduct adequate background checks to ensure that applicants are being truthful about their experiences and personalities. However, behavioral and talent assessments are also extremely beneficial in predicting job performance.
“Talent solutions are designed to identify critical behavioral characteristics and relevant skills for specific jobs.”
These screening solutions are designed to identify critical behavioral characteristics and relevant skills for the position in question. Many assessments are specifically designed for different industries, ranging from retail to healthcare to military. There are also programs created to assess the character, personality and attitude of potential employees.
Forbes magazine noted that over the last 50 years, researchers have developed personality models that can accurately predict an individual’s job performance, motivation and work ethic based off certain behavioral traits. Generally speaking, candidates that are conscientious, agreeable and emotionally stable often make valuable contributions to their teams and remain with their organizations for a number of years. Talent assessments can help HR departments to accurately identify these types of applicants and make the smartest hiring decisions for their companies.
Creating employee development plans
The benefits of talent assessments extend long after a candidate has been chosen for the position. The data collected from pre-employment talent screening can also be put to good use when new individuals join the company. Behavioral profiles can often help HR to determine which department or team a new employee would perform best on. The information gathered allows organizations to put their hires into roles that will make the most of their qualifications and in positions to succeed within the company.
As part of smart hiring processes, HR should use talent and behavioral assessments to create employee transition and development plans. When candidates are aware of their strengths and weaknesses, they will be able to grow and thrive as part of their new organization. This can ultimately lead to greater job satisfaction and reduced chance of employee turnover.
Defending employment decisions
It is also worth noting that talent assessments can be used to defend employment decisions if the company is ever accused of discriminating in its hiring practices. When administered in accordance with local and federal regulations, pre-employment assessments can help employers to make objective decisions about qualified candidates. The measurable data from these types of screening can help clarify why one applicant was chosen over another. For this defense to be considered, companies should have written policies about their use of talent assessments in employment decisions and be consistent in their use of screening solutions.
Over the past few years, the number of employers using talent assessments has increased. Josh Bersin, principal of consulting firm Bersin by Deloitte, told The Wall Street Journal that approximately 60 or 70 percent of prospective workers are assessed as part of the hiring process. This number is up substantially from 30 or 40 percent just five years ago. Employers that are looking to improve their hiring processes may want to consider investing in a talent screening program to find the best candidates for the job.
Hiring is the most important thing you do. Trust it to Global HR Research. Find out more by calling 1-800-790-1205 or visiting the GHRR website today.