Having decided that a pre-hire assessment will assist the effectiveness of your hiring process, the next step is to persuade your senior leadership team to come to the same conclusion. Getting budget agreed can always be tricky as there are so many competing demands within in organisation, so we’ve compiled these ten compelling facts to help you get that all important sign-off.
1) Bad hires cost more than you think
Analysis by the REC has concluded the cost of a bad hiring decision is equal to 3.2 times annual salary. A poor hire at mid-management level with a salary of £42,000 costs a business more than £132,000.
Source – Recruitment and Employment Confederation (REC) report, Perfect match: Making the right hire and the cost of getting it wrong, 2017
2) Hiring new talent is costly and time-consuming, even if you do get it right
SHRM (Society for Human Resource Management) estimates that firms on average spend $4,500 (around £3,600) for each new hire made. This figure doesn’t take into account any lost productivity while the position remains unfilled or the cost of getting it wrong which is significantly more expensive.
3) The interview process is taking longer than ever before
The average length of the interview process in the US has almost doubled since 2010, despite many organisations implementing new tech to make the process easier.
Source – Glassdoor report, June 2015 https://www.glassdoor.com/research/studies/time-to-hire-study/
4) Hiring managers are being swamped by CVs and need help
Each corporate job offer attracts 250 CVs, with on average between 4 and 6 candidates being called for interview.
Source – Glassdoor, https://zety.com/blog/hr-statistics
5) Traditional interviewing techniques aren’t working
A typical employment interview only leads to a successful hire 57% of the time. Using assessments can greatly improve hiring outcomes.
6) Candidates actually prefer to take assessments (if they’re work related and job relevant)
71% of people would like to take an assessment which communicated the realities of the role and the organisation as part of the hiring process
Source – Dreams V Reality whitepaper https://thrivemap.io/whitepaper-dreams-reality/
7) Pre-hire assessments save time
Using a pre-hire assessment can reduce time-to-hire by 50%
8) Pre-hire assessments have a positive impact on staff retention
Companies using technology-based pre-hire assessments have 39% lower staff turnover
9) How jobs are presented and the overall strength of the employer brand is becoming more important
80% of HR leaders say that their employer brand impacts significantly on their ability to attract the best talent
Source – Undercover Recruiter https://www.smallbizgenius.net/by-the-numbers/recruitment-statistics/
10) Getting the candidate experience right matters
48% of applicants say the pre-employment screening experience affects how favourably they view a potential employer.
Source – Career Builder https://www.smallbizgenius.net/by-the-numbers/recruitment-statistics/
Improve your hiring with ThriveMap
ThriveMap creates customised work simulation pre-hire assessments which take candidates through a “day in the life” experience of work in your company. It helps companies to uncover their best candidates through real work scenarios, and has been proven to reduce staff turnover, reduce time to hire, and improve quality of hire.
Use ThriveMap’s end to end pre-hire assessment platform to:
- Understand and model what great looks like in your organisation
- Match candidates to fit your jobs and organisational culture
- Deliver an industry-leading candidate experience