Filling a new or existing position can be an expensive proposition. According to SHRM, on average, most companies take 42 days to hire a new employee, with an average cost of $4,129. While these numbers vary based on the type and experience level of the position, it points to one very simple fact: Hiring new employees costs money.
Of course, this number is only the starting point, as you will also need to consider costs for posting the job, reviewing candidates, and interviewing. There are a number of other expenses associated with a new hire that can quickly add up. Writing for FastCompany, Aleks Peterson notes that companies need to account for several factors when considering the cost of a new employee, which include:
Because hiring comes with so many potential costs, it is imperative that your company does whatever it can to control those expenses. One option is to use eSkill’s Pre-Employment Testing Platform, which allows companies to save on hiring costs by providing detailed, highly relevant assessments of potential employees’ skill sets.
Pre-Employment Tests Can Save You Money
Traditionally, there were two ways that human resources (HR) came across candidates: Personal recommendations and submitted resumes. While applicant tracking system (ATS) software has streamlined the process somewhat, by and large, the first step in searching for a candidate started with reading a resume. Once you identified a pool of candidates, you would make phone interviews, then select a smaller interview pool for an in-person visit. Overall, the process was slow, time-consuming, and imprecise.
With pre-employment tests, however, the process can be streamlined. Thanks to the library of more than 800 standard tests and the freedom to create your own custom content, eSkill offers you a plethora of options for assessing potential employees, including the ability to tailor your tests to your specific needs.
Unlike the traditional hiring practice, pre-employment testing allows you to start with a skills assessment before moving to the resume stage. The reports generated by eSkill’s platform are clear and precise, allowing you to interpret the findings quickly. While resumes are still important, they serve to add context to the results of the pre-employment tests, giving you a more detailed, nuanced understanding of each candidate’s background.
Instead of laboring over resumes for individuals who clearly lack the necessary skills, pre-employment tests shorten time-to-hire and save on labor costs. They also help to eliminate the unconscious bias that can accompany traditional hiring methods by providing you with clear, objective data that is divorced from cultural or interpersonal factors, thereby helping you to diversify your workforce.
When you identify a smaller, more highly skilled pool of candidates, you also save on interview costs, which frees managers to spend more time on productive activities. And because you have already performed a skills assessment, you will not have to spend time and money to have candidates perform trial work to assess their fitness.
If you are interested in seeing just how much money you can save with pre-employment tests, eSkill has a cost savings calculator that can give you a clearer picture.
Other Benefits of Pre-Employment Testing
Beyond saving you time and money in hiring a new employee, pre-employment testing can help you to retain your employees, as well. During the hiring process, these skills tests provide you with a baseline for each employee, allowing you to see where they are strongest, while also identifying knowledge and skills gaps. This baseline can help to guide your onboarding process, According to SHRM, 69% of employees say successful onboarding makes them more likely to remain with a company.
This baseline also assists companies in employee development, another important tool in retention. Based on the reports generated from pre-employment testing, you can tailor each employee’s development program to address deficiencies in their skills and knowledge base. This serves to guide each worker’s progress while providing employers with the highest return on their investment in development.
Finally, pre-employment testing can help you to avoid the high cost of hiring the wrong person for the job. While no company gets the hiring process right each time, organizations that have a well-developed, consistent hiring strategy are more likely to succeed. This means that you will not only spend less on repeating the job search process, but you will also avoid the ancillary costs of a poor-performing employee, including lost customers, conflicts within a team, and lost productivity due to underperformance.
Adding pre-employment testing to your hiring process is all about simplification, and it can streamline your HR functions considerably. With eSkill’s Pre-Employment Testing Platform, you will see the difference almost immediately.
Interested in Using Pre-Employment Tests to Lower Your HR Costs?
Learn how eSkill’s Pre-Employment Testing Platform can help you to find the right candidate for your open positions and reduce hiring costs. Request a demo today.