“8 out of the top 10 private employers now administer pre employment personality tests during their job application for at least some positions.” – Wall Street Journal




Using Pre Employment Testing

Now more than ever, small and medium-size employers are collecting data that helps improve the accuracy of hiring decisions. How are they doing this? Through the use of Pre employment personality tests. Pre-hire assessments measure applicants on key personality traits, and interpersonal aptitudes as they relate to a specific job. Pre-hire assessments are distinguished from other assessments in that they are designed to assist with predicting future behavior rather than just used to describe a personality tendency. For example, assessments like the Myers-Briggs and the DISC are common tools for organizing teams and developing leaders, but they are not designed to predict whether or not an applicant is a fit as a future employee.

Let’s do the numbers.
A recent article in the Wall Street Journal points out that 8 out of the top 10 private employers now administer pre employment personality tests in their job applications for at least some positions. With this in mind and considering the numbers below aggregated by John Sullivan in a post on ERE, if you’re organization is not using predictive, pre-hire assessments, it’s high time you get started.

-50% customer regret — 50% of the processes users (both managers and new hires) later regret their “buying” decision (Source: The Recruiting Roundtable). In addition, 25% of new hires later regret taking their new job within one year(Source: Challenger, Gray)
-46% failure rate — 46% of U.S. new hires must be classified as failures within their first 18 months (fired, pressured to quit, required disciplinary action, etc.)(Source: Leadership IQ). In addition, 58% of the highest-priority hires, new executives hired from the outside, fail in their new position within 18 months(Source: Michael Watkins).
-Only a 19% success rate — only one out of five of the process output can be classified as unequivocal successes (Source: Leadership IQ).
-66% regret hiring decisions — Nearly two-thirds of hiring managers come to regret their interview-based hiring decisions (Source: DDI)
-Less than 50% are qualified — a majority of managers surveyed (59%) believe that less than half of all candidates they interviewed were qualified (Source:eBullpen, LLC).
-Bottom performers produce less — hiring and retaining below or even average performers have real opportunity costs because top performers can increase productivity, revenue, and profit by between 40% and 67% over average performers (Source: McKinsey & Co.).

Beyond key-word filters and arbitrary scoring
These days, the most popular applicant tracking systems don’t force employers to rely on arbitrary (and often inaccurate) algorithms that scan applicants’ resumes and assign scores based on key-word analysis alone. While these features had good intentions, these instruments are often skewed by applicants that load their resumes with what are thought to be desirable skills and tools. Check out the search results for “beating the ATS”. And, even more importantly, key-word scoring algorithms rarely meet EEOC guidelines and can often introduce serious compliance risks.

The benefits of pre employment personality tests
Employers that measure key personality traits as part of their recruiting process are better able to understand how an applicants’s personality traits can impact job performance, long-term success and their overall cultural fit within the organization. Understanding personality traits not only drives more data-drive hiring decisions but also helps reduce total recruitment costs and can boost retention rates. Here’s a summary of the key benefits of pre-hire assessments.

Measure applicants on key personality traits before the interview process. Prioritize applicants that have higher predictive scores. Pre-hire assessments will help you filter applicants more strategically.

Not every hiring manager was born with interviewing skills. Pre-hire assessments produce business impact questions based on applicants’ scores for specific jobs that serve as a behavioral interview guides. Share these reports with your interviewers to add more structure to your interview process.

These days pre-hire assessment reports include scores and accompanying resources that appear automatically in leading applicant tracking systems so hiring managers have critical data at their fingertips. This accessibility and convenience helps managers use data to make more informed hiring decisions.

Leading pre-hire assessment tools include reports featuring coaching suggestions designed to facilitate higher retention rates by providing advice to hiring managers based on applicants’ traits and personality tendencies.

What are you waiting for?
Ready to learn more about pre-hire assessment tests and how you can start using these powerful predictive tools now? Users of Newton, the fastest growing applicant tracking system of 2015, click here to get in touch with an expert.

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