The short answer is neither. The longer answer is a bit more complex. Nor is any organization likely to find the perfect workforce regardless of whether they use assessments or not.
The debate over the usefulness, accuracy, and even the legality of assessments has raged on for a number of years. For those who like to categorize everything into the black and white, right or wrong, good or bad piles, the true answer may not be that clear cut. According to recent research by Aberdeen Group, there is a shortage of critical talent and replacing an employee can carry a price tag of upwards of five times a bad hire’s salary. Therefore, it is evident that making good hiring decisions is crucial for an organization’s bottom line. Moreover, the use of assessments can have a positive impact on not only hiring, but retention, performance, and engagement.
Aside from measuring a potential candidate’s interests, backgrounds, strengths, and weaknesses, assessments provide other bonuses.
- Best-in-class organizations are 45% more likely to use pre-hire assessments
- Best-in-class companies are 95% more likely to have a consistent competency model used for hiring, [including using assessments consistently as part of the model].
- Companies that use assessments are 36% more likely to be satisfied with their new hires
- Organizations using pre-hire assessments with performance results are 24% more likely to have employees who exceed performance expectations.
- Businesses using pre-hire assessments in conjugation with performance results have employees who are 17% more likely to rate themselves as engaged.
- Assessments can provide information as to whether or are not an employee is a good cultural fit. Best-in-class companies pass this information along to manager
You can read the full report, Pre-Hire Assessments: An Asset for HR in the Age of the Candidate, at www.aberdeen.com
Those of us who tout the use of assessments as a critical tool in combating turnover, for increasing productivity, and improving customer satisfaction are also aware that cautionary measures must be taken in the use of assessments. So, no they are not the Holy Grail nor are they a wholly failure. Assessments are designed to be used in conjunction with the entire hiring process of implementing good search techniques, establishing performance standards, using good interviewing techniques, reference checking, and drug testing. Here are some other ideas to consider.