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HomeHuman ResourcesManaging PeopleAssessment Testing is Your Key to Lower Employee Turnover

Assessment Testing is Your Key to Lower Employee Turnover

Once upon a time ago, all you needed to get a good job was a great resume, recommendation letter, and talking game. Well, times have changed, and for good reason. Companies across the board are continually looking for ways to lower hiring costs while bringing better skilled, educated, and tempered staff on board.

 In this short article, we will look at some of the dangers turnovers can pose to your company and then look at how assessment tests can come to ensure that you avoid those pitfalls.

Turnover Costs Time and Money!

The first thing to note is that any company considers before taking any step is its cost. Whether a long-term payoff or short-term payout, every decision is designed to work to the financial benefit of the organization. Thus, when devising a hiring system to hire and onboard new employers, the process must be financially viable. 

Forbes recently cited a finding that hiring the wrong candidate can cost the company on a number of metrics, including: Recruiting, Interview, Post-interview, Employment, Training, and lost opportunities. Let’s break down each of these metrics and show how assessment tests are the solution your company needs.

Recruiting Process

Before a candidate is even hired, the company is spending money to find the candidate. According to Forbes, recruiter fees and advertising combined can add up to at least 33% of a yearly salary. And considering that on average, 1/3 new hires leave their position within two short years, companies can quickly feel the burn. 

The Interview Process

The interview process is comprised of several stages, which all cost HR time and money. 

  • Going through a large number of CV’s takes time away from other essential tasks in the company. Despite computer software that helps filter out a good portion of unviable or irrelevant candidates, HR has their work cut out for them.
  • After reviewing the CV, HR must then conduct initial screenings, administer in-house or test center testing, and follow up with listed references. Considering that the CCAT is the most popular assessment test in the world, we will focus in on that test below.
  • Many companies also rely on drug screening and other background checks to ensure the stability and trustworthiness of the incoming candidate.

Training Process:  

After the company decides on who to hire, the training process begins. According to the CEO of GrowthForce, Stephen King, it is important to note that it takes on average 2-3 months until a new employee is fully productive. During that period, the new hire will bring about 25% less profit to the company than the former employee. Now imagine the situation where the company has to restart the process two times in a row. 

Additionally, the more senior employee or manager in charge of training will also lose on average around a month of work, which will, of course, backlog and affect the company overall. Beyond training, the company must also put out administrative processing costs when instructing IT and Accounting departments to fully set up the new employee (payroll, company computer system, and more.)

Lost Opportunities:

Lastly, bringing a new person on board and then having to fire them, and summarily begin the search anew, equals lost opportunities for the company. While these costs can be hard to measure, they come in many different forms and affect companies in a wide range of ways. 

From missed phone calls from potential clients, delayed responses to providers, missing trade shows or new business opportunities, or just a demoralized or nervous competent staff – can all affect your business. 

So how can you ensure that better quality people come and stay with you longer? The answer lies in providing candidates with professional and career-specific pre-hire testing that is geared to your company. 

Accurate Assessment Testing 

While there is a wide range of tests on the market, we cannot cover every test category in this short segment, however, we will focus on the CCAT and the Hogan Personality Inventory. These tests exemplify how the right testing can make the difference between a long, stable and loyal employee and one who will not last a month.

Criteria Cognitive Aptitude Test

What makes the Criteria Cognitive Aptitude Test (CCAT) so popular is its adaptability to many different positions. The test focuses on problem-solving abilities, learning skills, and critical thinking by using four categories:

  • Math 
  • Verbal
  • Abstract / Spatial 
  • Logic  

The test is designed to challenge your critical thinking, ability to absorb new information, and then problem-solve. These skills are critical as they can apply to almost any job setting, especially during the onboarding process. Above, we mentioned the time is taken away from managers and other staff members when bringing the new guy up to speed. If your new hire is a fast learner, it can significantly reduce the 2-3 month learning curve.    

The intimidating nature of the exam is exactly what makes it so attractive to integrate into hiring processes. The test demands, for instance, excellent time management. Considering that you only have 15 minutes to answer 50 questions, keeping your eye on the clock, while using the right methods to answer quickly and correctly is paramount to your success on the test and on the job. 

Aside from the general cognitive abilities, the test also focuses on math and verbal skills, which are essential skills lacking from many candidates. 

For instance, there is hardly a job on earth that does not necessitate strong verbal skills. From dealing with clients to office staff, writing emails or editing presentations, and so much more, communication is key to anyone’s success.

So, who are just some of the major companies using? These include Vista Equity Partners, Crossover, Vertafore, PowerSchool, Datto, and Finastra, among countless others.

H3 Hogan Personality Inventory

There is a reason that over 1500 companies have already incorporated the Hogan Personality Inventory as an integral part of their hiring processes. 

Besides understanding your technical know-how and your ability to learn and adapt, companies also want to ensure that you have the right personality that will make you the right fit for the company, including its culture and standards. This is accomplished by measuring six (6) occupational scales:

  • Service Orientation
  • Stress Tolerance
  • Reliability
  • Clerical Potential
  • Sales Potential
  • Managerial Potential 

The HPI contains 220 questions based on a 4-point Likert scale and usually takes 15-20 minutes to complete. So, what is the test specifically looking for? “Bright-Side” or normal personality traits that are displayed under normal conditions. 

The test has devised seven scales to assess your “bright-side.”

1.     Adjustment: Your self-confidence, self-esteem, and ability to work under pressure.

2.     Ambition: Your desire to lead, initiative, and level of competitiveness.

3.     Sociability: Your need for social interaction and extraversion.

4.     Interpersonal Sensitivity: Your likeability, tact, and relationship maintenance ability.

5.     Prudence: Your levels of responsibility, self-discipline, and thoroughness.

6.     Inquisitive: Your aptitude for creativity, curiosity, and imagination.

7.     Learning Approach: Your level of enjoyment when it comes to learning and your ambition to keep up with current knowledge.

It does not matter if you are looking to cultivate future company leaders or bring in the right guy to get the job done; this test will provide deep insights into their ability to succeed, at least in terms of their overall character.

Summation: The key to preventing (or dramatically decreasing) the number of hires is to ensure that they have the proper skill-sets, cognitive abilities, and personality traits needed to succeed and grow with the company for years to come before they sign their contract.

Good luck on the employee hunt!   

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