When your company makes a bad hiring decision, the impacts can ripple out for a long time after the initial hire. For the most part, mis-hires usually result in an immediate lack of productivity, whether the employee lacks critical skills for the job or they do not fit in well with the company’s culture. Whatever the case may be, that lack of productivity puts additional stress on the rest of the team and can lead to bitterness and resentment.
Figuring out how to deal with a poor hiring choice is not easy. No matter how you try to minimize the impact of a mis-hire, it is usually going to end up costing you money. According to the U.S. Department of Labor, a bad hire can end up creating expenses of more than 30% of the employee’s first-year salary. Separating from an employee incurs more costs, including the cost of recruitment for a new hire.
Of course, everyone makes bad hires. A report from Northwestern University notes that 74% of employers report making a mis-hire in the past, which means that three out of every four employers have made the wrong hiring choice at some point. The best solution, it would seem, is to do everything possible to increase the odds of hiring the right person.
Thanks to eSkill’s Talent Assessment PlatformTM, it is easier than ever before to integrate pre-employment testing into your company’s hiring process. With a library of more than 800 skills tests organized by job and by subject, pre-employment tests provide you the information you need to avoid wasting money by hiring the wrong person for the job.
Pre-Employment Tests Make Hiring Easier
eSkill’s pre-employment tests can be easily incorporated into your company’s human resources (HR) software, allowing you to fit skills tests seamlessly into your application process. While resumes are an important part of any applicant profile, skills tests provide quantitative data that can help you to quickly separate out candidates who do not have the necessary skills for your position. Unlike resumes, which can be easily padded — or fabricated — you can trust test results to be accurate.
A profile of each employee’s skills, knowledge, and abilities can be generated from every pre-employment test, giving you an easy way to compare employees against one another. This has the added benefit of reducing unconscious bias, which can affect every hire. When you reduce this implicit bias, you are not only giving everyone a fair chance to stand on their merits, but you are also more likely to increase the diversity of your workforce.
Finally, using pre-employment testing to reduce the number of candidates can help you form a more efficient interview pool. Because you already know which candidates have the required skills, you will not have to waste time trying to verify resumes by checking references and holding phone or in-person interviews. Instead, you can rely on the tests to create a smaller pool of highly qualified candidates, which can help you to choose the right person for the job.
Pre-Employment Testing Helps with Retention Too
Good employees can quickly become bad hires without support. Even the best hire will quickly fade if they do not feel the company is invested in their success. This support begins with the onboarding process but continues throughout an employee’s time with the company.
When you bring in a new hire, it is important to ensure that they feel fully welcomed into the company. One key aspect of this process is to discuss your employee’s goals and devise a plan for their professional development. Using the information you gained from the new hire’s pre-employment assessment, you can help guide their training while ensuring that they first build the skills they will need to perform their job to the best of their abilities.
However, retaining employees for the long term requires continuing that employee development for the long haul. When you invest in an employee’s continued training, it shows them that you are committed to their future — all while growing your company’s skill base too. It is a win-win.
Employee retention is important for several reasons. When you lower turnover, you spend fewer resources on rehiring for those positions, along with onboarding and training those new hires. You will also preserve your company’s knowledge base and keep your company’s culture constant.
Most important, though, is that retaining your good employees makes it harder to hire a bad employee. The fewer positions you have to fill and the more quality hires you are able to keep within your company, the less chance there will be for hiring a dud. Indeed, according to Inc., 46% of employees are considered to be a failure after 18 months. So when you find the right person, you need to do whatever you can to keep them in their position.
Interested in Using Pre-Employment Tests to Avoid Bad Hires?
Learn how eSkill helps you create skills tests that help you recruit top candidates so you can avoid costly mistakes. Request a demo today.