Employee Assessments–A Strategic Imperative
In today’s business scenario, hiring, retaining and developing the right talent are the key elements of an organization’s strategic management initiatives. This amplifies the need to understand the skills, abilities and job disposition of prospective and existing employees to help get a good talent-job fit. Employee assessments play a big role in helping organizations make unbiased, scientific and informed decisions relating to acquisition and development of human capital.
The ‘WRONG-HIRE’ SYNDROME
From a selection perspective, hiring mistakes happen at two levels.
1. Selection of people who don’t meet the actual job related skill and personality requirements and
2. Mistakes in de-selection of potentially good talent.
Research estimates suggest that on an average 10% of hiring in organisations is faulty based on the aforesaid reasons. Although the percentage seems miniscule, the impact it has on employee productivity and ultimately on the company’s bottom line is tremendous.
TYPICAL HIRING CHALLENGES
Typical challenges in the Manpower Hiring Processes are as follows:
Reach • Time to Reach-Speed
• Extent of Reach-Coverage
Bandwidth • Resource-Time, Manpower Cost
Logistics • Coordination with agencies, institutions and direct applications
• Organization and Administration of the selection process
Turnaround • First level Shortlist to Offer
Time • Speed of publishing results
How assessments help reduce hiring costs and improve quality of hires
• Assessments help identify strengths and weaknesses that are often hidden through traditional selection methods thereby improving selection decisions.
• When used in the early stages of high volume assignments, assessments significantly reduce the number of candidates to be interviewed, saving HR and line managers’ time and money.
• Assessment results aid in the management and motivation of new employees, improving productivity and performance.
• Assessments also help differentiate between seemingly similar candidates, reducing selection risks.
Research shows that there is a positive relationship between selection methods and organizational performance; that as organizations use more selection techniques (recruiting studies, validation studies, structured interviews, cognitive aptitude and ability tests that organizational performance also increases ((Terpstra & Rozell, 1993). Findings of AssessPeople’s research on the Future Workforce expectations (2011) also indicate that the future workforce prefers assessments as an important part of the selection process.
Employee Assessments for Workforce Development
In addition to making hiring decisions, assessments can be used in performance management and strategic workforce development initiatives as follows:
• Development Centers (which include testing) can be used to identify the training and development needs of managers, resulting in more targeted and effective training programs.
• Assessments can significantly reduce the risks associated with internal promotion decisions.
• When assessing team performance, assessments can identify dysfunctional teams, and assist in the selection of more synergistic team types that will increase productivity.
• Assessments can be used to establish benchmarks when creating heterogeneous teams (eg sales teams) to assist in the selection of future team members.
Managing human capital is the new core competence that companies look to develop. The use of validated employee assessments is an efficient way to maximize ROI from human capital investments.
Stella Jones is a HR and helps companies in hiring right candidate for the right position. Her vast experienced in Human Resource helps to provides proper Employee Assessment Solutions for hiring right candidate.
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