Hiring the "wrong" candidate can be extremely costly — decreased sales, lowered productivity, and drops in company morale are just a few of the tangential costs above and beyond the actual recruiting, hiring, and onboarding expenses.
Pre-employment testing can help minimize those poor hiring decisions and weed out the wrong candidates early on. Here are the testing options and benefits as well as the legal concerns sometimes associated with pre-employment screening.
Types of Pre-Employment Testing
There are several types of pre-employment testing and screening tools. The test or tests you choose to utilize will depend largely on the position for which you are hiring.
Aptitude Tests: These tests are designed to verify or measure a candidate's ability as it relates to critical thinking, problem-solving, and comprehension as well as specific skills required for a position. For example, employers may wish to verify that candidates possess strong cloud computing or data mining skills — two of the top skills employers are seeking per a LinkedIn study.
Skills Tests: Skills test typically involve assessing general job-related skills. These include skills such as math, reading, communication, typing, and basic computer skills.
Personality Tests: Personality tests can indicate a candidate's prominent characteristics including tendencies toward introversion or extroversion, openness to new experiences, and level of agreeableness. They may be particularly helpful for companies who have already established candidate personas or success profiles based on their unique company culture.
A May 2015 report from Aberdeen Group, a human capital management practice, indicates that companies who implement pre-employment testing through a consistent and appropriate method reap major benefits:
- Turnover rates are 39 percent lower.
- New hires are 13 percent more likely to meet or exceed their 12-month performance goals.
- Employees are 17 percent more likely to rate themselves as highly engaged.
- Hiring managers are 36 percent more likely to be satisfied with new hires.