High turnover has often been cited as one of the most pressing HR concerns. Job hopping is becoming increasingly normal and millennials are constantly in search of a job that satisfies them, their core values, and their ambitions. The competition is overwhelming and, as such, it is becoming a challenge for companies to attract and retain quality employees. In order to minimise turnover, it is essential that you find prospective employees that not only suit the job specification at hand, but who will fit comfortably into the ethos and culture of your organization.
HR professionals around the world are coming to appreciate the value and importance of quality recruitment assessment. This scientifically-backed and objective approach to recruitment serves to save you money and streamline your selection process, ensuring you take aboard only the most suitable candidates who will remain with your company and improve organizational productivity for years to come.
What is the cost of high turnover?
Every executive is aware of the problems caused by high turnover, but few might be aware of the hard costs that are involved. One study conducted by the Society for Human Resource Management states that employers spend roughly the equivalent of six to nine months of an employee’s salary to both find and train a replacement. Another study estimates this cost to be far higher, from 16% of their salary (for employees paid hourly) to 213% of their salary for more highly-trained personnel. These costs come in the form of job advertising fees, recruitment agency fees, internal recruitment costs, crafting relevant documents, and the hours required to review CVs.
It takes an average of 28 weeks to train an employee to reach optimal productivity, and high turnover has been linked to reduced employee morale. A reputation for high turnover can also be seriously damaging for any company. These statistics demonstrate that ensuring a strong Return on Investment (ROI) is essential to the success of a company. The only way to ensure this is to look to objective measures of recruitment.
What is recruitment assessment?
Recruitment assessment involves a thorough process of executive assessment, psychometric testing, and interviewing. The process begins by determining and assessing core competencies within a pool of job candidates. This is accompanied by the use of psychometric tests, which will help to refine that selection based on factors such as candidate personality, abilities, and work style. All of this is followed up by a formal interview. This thorough process yields serious results, as it can far more reliably predict future performance than a simple, traditional interview.
For example, The Aberdeen Group once conducted an assessment of over 250 international companies. The study concluded that those organizations which made use of objective recruitment assessments enjoyed a 15% rise in first year retention, 18% rise in new-hire performance, 11% increase in profit per full-time employee, 12% increase in revenue, and an incredible 47% improvement in hiring manager satisfaction.
Determining the right characteristics
The first stage of recruitment assessment involves determining the key skills and abilities required for an employee to perform a given role optimally. Organizations that would like assistance finalizing or refining these competencies can get a job analysis, which will serve to assist in the next stages. Once these skills and characteristics are determined and agreed upon, then assessment tools and techniques are chosen in order to best test for the specified competencies.
Psychometric tests are used to determine a range of measurable attributes, including critical reasoning, motivation, leadership potential, and intelligence. They can also be used to explore personality, work style, team interaction, and values. This testing results in objective data that can be critically analyzed and referenced at later stages, eliminating the need to rely solely on ‘gut feeling’, which can at times let recruiters down. This way of testing is also fairer on the candidates, some of which often feel that they don’t give an accurate reflection of their character and capabilities during one interview.
Expert knowledge and interpretation
The results of these psychometric tests are indeed measurable, although they are best interpreted and analyzed by experts in the field. This is often done by business psychologists, who use their understanding of the human mind and business to dissect the data and provide HR executives and hiring managers with clear, concise information. The tests will cover important information such as relevant strengths and limitations, which will help to eliminate unsuitable candidates.
The final state of recruitment assessment involves a formal interview
The data gained from psychometric testing will help to guide an informative, competency-based interview. Now that you have narrowed your candidate pool, a face-to-face interview will give everyone involved a chance to observe personality and behavior. It also helps determine whether or not the employee is likely to be a good match for the company culture. Importantly, the results of the tests will keep the interview on track and focus attention on integral areas such as strengths, ambition, and job fit.
Indicators of future performance and progression
Of course, the results of the psychometric testing are not solely relevant during the recruitment process. The data retrieved is in-depth and informative. The information gives executives an idea about how they are likely to progress, their leading style, and what they can bring to the company long-term. As such, the data can be used for progression planning, meaning you are not only recruiting the ideal candidate for now, but you are also securing a promising employee who could help your organization thrive in the future.
About Nick Davis:
Nick Davis is a Business Psychologist and Director at Davis Associates. Using executive assessment, Nick has helped clients across the globe achieve greater individual, team, and organizational performance. He is passionate about the beneficial qualities psychology can have within the workplace.