Quality of hire is the most valuable aspect of the talent acquisition process in any organization. Employers are even looking into remote proctoring software to aid them in evaluating whether a candidate is qualified to take on vacancies.
It is the value that a new hire brings to an organization and the extent of his contribution to the company’s long-term success. Organizations need to get the hiring right; a good hire can be a game changer for an organization, while a bad hire can cost the company at least a year’s individual salary. Paradoxically, the quality of hire is inarguably the most difficult recruiting metric as it may take months and even years to gauge the efficacy of an employee to an organization.
Measuring quality of hire is a process that is still evolving, and companies look at it in myriad ways. Companies often link performance reviews or general performance to a particular hire to measure the quality of that hire, according to Lars Schmidt, the founder of Amplify Talent,”In an ideal world, you’d have a connection and an understanding of hires and performance over time that could be segmented by recruiter, manager and team to truly understand the impact those relationships are having on quality of hire. You could find out that recruiters are bringing in great people, but the hiring manager is not able to develop them. Or there is a department that is not able to optimize high-potentials and high-performers.”
Impact of Psychometric Assessments
In a marked domain shift, a growing number of companies are embracing psychometric assessments today to improve hiring processes due to a proven statistical correlation between assessment tests and high job performance. A total of 80% Fortune 500 companies in the USA and nearly 75% of the Times Top 100 enterprises in the UK are deploying psychometric assessments across a wide range of industries including financial services, IT and management consultancies, as per estimates.
A survey by the Society for Human Resource Management estimates that at present, 18% of companies use psychometric testing in the hiring process. Additionally, 95% of FTSE 100 companies also use psychometric testing when recruiting, as do the military, and local authorities.
Psychometric testing can measure a number of attributes including intelligence, critical reasoning, motivation and personality profile. An interview process can be fairly subjective and although employers will normally assess skills and experience fairly accurately, much can still be left to gut instinct regarding aligned values.
Psychometric tests helps you build a bridge between the candidates potential and the jobs requirement. For that first you must define a detailed job description and identify the competencies required for job. The assessment will help you shortlist the pool by mapping the quality of the candidate with the job role. As it is all about getting the right people on the bus, the wrong people off the bus, and the right people in the right seats.