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How Top Staffing Agencies Use Pre-Hire Assessments

Posted by Chris Fields

pre-hire assessments

How would you assess a candidate’s ability and potential to be successful? Although there are no guarantees when it comes to recruiting and hiring, can help.

You know that misrepresentations are common among candidates and the cost can be daunting when those candidates say they are a fit and turn out not to be. You screen stacks of résumés, with nearly 50% of all résumés having some embellishments (lies) or misleading statements.

It is difficult to know what is true and what isn’t during the interview process. While we all like to think that we are human lie detectors and rely on our “gut instincts” to make hiring decisions, those of us with first-hand experience in these situations must admit that we’ve been fooled once or twice.

Top staffing agencies, like yours, don’t have the luxury of being “fooled” because you have clients with employment needs who cannot afford to have bad hires. This reality is one reason top agencies use pre-hire assessment tests to match more and better candidates with open positions.

Pre-employment screening tests save time by freeing up the recruiting team to work on other areas of the hiring process. They also increase the number of viable candidates by highlighting better candidates for the hiring team to consider. eSkill clients that use pre-employment assessments have realized a 64% savings on the selection process and reduced the time spent on hiring by 68%.

When it comes to talent assessment, the stakes are extremely high. It is not an exaggeration to say that the cost of a bad hire can have overwhelmingly negative effects on an organization.

A good hire or bad hire impacts your retention rates, employee engagement, team cohesion, branding, morale, and, of course, the bottom line. According to SHRM, “The Cost of a Bad Hire Can Be Astronomical”, the cost of one bad hire can be as high as $240,000.  

At eSkill, we agree that the expense of replacing an employee can be anywhere from 30% to 400% of an employee’s annual salary, depending on the employee’s position and salary. How is that possible? Just consider the costs associated with job advertising, disruption and lost productivity for recruitment staff, contractual obligations, relocation fees spent, and other compensatory costs.

Recently a client, named Toni, shared a story of a new hire whose failure turned out to be very costly for her organization. The now-former employee was hired to lead the Sales Department. He came with an impressive resume and top-notch references, and he interviewed exceptionally well. However, once he completed his onboarding, the company began to notice that the “groundbreaking” strategies and methods that he had talked about during the interview were not materializing on the job. The Sales Team started to wonder about his abilities and quietly revolted against their new leader.

After one too many stumbles, the company investigated and discovered some significant discrepancies on his resume and in the information that he presented during his interview. Once an investigation was complete, it was determined that they had no choice but to terminate the employee. Toni, and his team added up the funds invested in the ex-employee, including health care, salary negotiation, signing bonus, and buying his house so he could relocate for the job. They calculated that the company would stand to lose about $350,000 from this hiring mistake.

A pre-hire screening test could have saved Toni and her company time, money, and embarrassment from that hiring fiasco. The process could have been customized to identify skill deficiencies and skills that needed further development before negotiating the job offer.  The pre-hire assessment test would have also fortified the legality and defensibility of the hiring process since pre-employment tests, like any test, must be non-discriminatory and free from bias, according to the EEOC.

To summarize, by using pre-employment screening tests, you:

  • get more and better quality candidates;
  • reduce your time to fill positions;
  • lower your cost per hire;
  • increase your retention rates;
  • decrease your turnover rates; and
  • create a recruiting process that is more efficient and legally defensible.

Make the easy choice – choose eSkill Pre-Employment Assessment Testing. Request a complimentary demo today.

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About Chris Fields

Author

Chris Fields is an HR professional and expert resume writer with more than 13 years of experience as a former practitioner and current HR consultant. He is the curator of two websites: CostofWork.com and ResumeCrusade.com, and contributes HR-focused content to many others, including PerformanceICreate.com, eSkill.com and SmartRecruiters.com.

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