4 minute read
Posted by Chris Platts on 19 September 2019
Understanding and articulating the benefits of testing candidates to key stakeholders is the first step on the road to improving your hiring process. These benefits will need to written down, turned into actionable metrics and then measured in order to demonstrate the ROI of any new candidate testing tools purchased.
According to Gartner, recruiters spend approximately one-quarter of their time on candidate screening activities, such as reading through a big pile of resumes. It’s time that can be saved by using effective pre-hire assessments.
Getting budget approved and senior-level buy-in to use technology as a more robust way to hire can be tricky. We’ve compiled these ten compelling benefits and statistics to help you get that all-important budgetary sign-off.
Statistic – The cost of a bad hiring decision can be upto 3.2 times their annual salary.
Fro example 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
Statistic – Firms spend on average spend $4,500 (around £3,600) on direct recruitment costs 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.
Source – SHRM (Society for Human Resource Management) https://blog.namely.com/why-candidate-experience-is-more-important-than-ever
Statistic – The average length of the interview process has almost doubled since 2010, despite many organisations implementing new technology to make the process easier.
Source – Glassdoor report, June 2015 https://www.glassdoor.com/research/studies/time-to-hire-study/
Statistic – Each job offer attracts an average of 250 applications, with between 4 and 6 candidates being called for interview.
Source – Glassdoor: https://zety.com/blog/hr-statistics
Statistic – A typical employment interview only leads to a successful hire 57% of the time. Using assessments can greatly improve hiring outcomes.
Source – ESkill: https://www.eskill.com/blog/best-worst-predictors/
Statistic – 96% of people would prefer to take an assessment that communicated the realities of the role and the organisation as part of the hiring process
Source – ThriveMap: Dreams vs Reality Whitepaper Research, Feb 2019 https://thrivemap.io/dreams-v-reality/
Statistic – Using candidate testing can reduce time-to-hire by up to 50%.
Source – TalentLyft
Statistic – Companies using technology-based candidate testing have 39% lower staff turnover.
Source – Study by Aberdeen Group, 2015 https://sr.ithaka.org/publications/mapping-the-wild-west-of-pre-hire-assessment/
Statistic – 80% of HR leaders say that their employer brand impacts significantly on their ability to attract the best talent; customised tests can help communicate your brand and culture.
Source – Undercover Recruiter https://www.smallbizgenius.net/by-the-numbers/recruitment-statistics/
Statistics – 48% of applicants say the candidate testing experience affects how favourably they view a potential employer. 96% of new hires prefer to take an assessment that tells them about the role and culture ahead of joining a company.
Sources – Career Builder https://www.smallbizgenius.net/by-the-numbers/recruitment-statistics/, ThriveMap Whitepaper: Dreams vs Reality
Hopefully, these benefits have provided you with some clear benefits and a compelling value proposition for testing candidates before you hire them. Next, you’ll need to find the right assessment tools for your organisation, so download our free Ebook: The Buyers’ Guide to Pre-Hire Assessments
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ThriveMap creates customised assessments for high volume roles, which take candidates through an online “day in the life” experience of work in your company. Our assessments have been proven to reduce staff turnover, reduce time to hire, and improve quality of hire.
Not sure what type of assessment is right for your business? Read our guide.
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