Alexis Kestler
The talent war is here. With historically low unemployment and high churn rates, finding and retaining top talent is harder than ever. But there‘s good news – advances in talent analytics and assessment technology are leveling the playing field. As a recruiting leader, pre-employment assessments can be your secret weapon to hire superstars.
Now, you may be wondering:
- What exactly are pre-employment assessments?
- How do they work to predict job success?
- What results can you expect from using them?
Well, my friend, you‘ve come to the right place. With over 5 years in HR tech and a master‘s degree in Industrial-Organizational Psychology, I‘ve seen firsthand how assessments are transforming hiring.
In this guide, we‘ll explore the data and science behind pre-employment testing. I‘ll also share real-world examples of how assessments help leading companies like Unilever, IBM, and Starbucks hire top performers across roles.
Let‘s get started!
What Are Pre-Employment Assessments?
Pre-employment assessments evaluate job candidates using standardized methods beyond traditional interviews. They measure skills, cognitive abilities, personality traits, and predicted job match using science-based techniques.
Assessments administer validated tests to determine strengths and weaknesses central to performance. Criteria tested often include:
- Job-specific skills – coding, accounting, typing speed
- Cognitive abilities – critical thinking, logic, attention to detail
- Personality traits – adaptability, cooperation, reliability
- Culture fit – aligning behaviors and motivators
Evaluations typically involve multiple choice questionnaires, interactive simulations, and questionnaire-style analysis.
The goal is simple:
Accurately and objectively assess talent to find the best job match possible.
Using empirical methods removes bias that impacts human prediction and gut-based calls.
But what types of results can you expect from using science-based assessments?
The Power of Assessment Data for Hiring
Research shows structured assessments generate significantly higher accuracy for identifying top talent compared to traditional hiring methods.
Let‘s look at two major meta-analytic studies demonstrating their predictive power:
Study 1
In a benchmark study published in the Journal of Applied Psychology, researchers analyzed 85 years of research on hiring methods. They found structured interviews and assessments had far higher predictive ability compared to unstructured interviews and reference checks.
Some key statistics:
- Unstructured interviews had only a 14% predictive accuracy of job success
- Reference checks had a 26% predictive accuracy
- General mental ability assessments topped at 56% predictive power
- Job sample tests (work simulations) scored 58% accuracy
- Assessment centers utilizing multiple methods peaked at 67% predictive ability
Study 2
A similar large-scale study published in Personnel Psychology evaluated 10 common hiring techniques against employee performance data.
Key findings included:
- Cognitive tests were the top stand-alone predictor, correlating 51% with performance
- Job tryouts directly testing skills followed next at 44%
- Integrity tests identifying destructive behaviors achieved above 40%
- Traditional interviews continued to lag around 20% accuracy
The hard data shows structured, standardized assessments excel at finding high performers – 2x to 5x better than interviews or references.
But what about measuring skills like leadership, creativity or cultural fit that are hard to quantify? This is where talent analytics steps in.
Talent Analytics Uncovers Hidden Performance Potential
Talent analytics represents a new generation of assessment capabilities powered by statistical modeling and AI. Assessments have evolved from simple questionnaires to sophisticated simulations that capture multifaceted competencies required for success.
Modern assessments analyze communication style, learning agility, and unconscious biases that impact collaborative work. Profile-matching algorithms can detect suitable candidates that align with existing high performers.
Assessments also provide predictive insights to target development opportunities and retention risks once employees join.
For example, Starbucks utilizes talent analytics in hiring baristas who deliver standout customer service. Candidates complete an observational assessment where raters evaluate dependability, attention to detail, cooperation, stress handling and more. This data builds a rounded people-skills profile for selecting hires most likely to thrive.
So in summary, combining smart assessments with talent analytics unlocks next-level insights about people that transform recruiting accuracy and efficiency.
Pre-Employment Testing Leads To Real Business Results
Hiring more high performers means reaching targets faster, retaining intellectual capital and sustaining a competitive edge. Data shows companies utilizing assessments significantly outperform peers and benchmarks.
For example, research by AI talent testing platform Pymetrics observed the following results:
Study 3
Unilever compared job candidates assessed with AI-based games versus management interviews. They found the predictive placement accuracy to be:
- Interviews: 58%
- AI assessments: 82%
This resulted in hires with 41% higher average retention.
Study 4
A Fortune 500 professional services firm tested candidates with a Pymetrics assessment. They achieved a 95% predictive accuracy for job placements using the tool‘s data model. This led to 63% lower turnover within a year.
Study 5
IBM cut their advertising account manager ramp up time from months to weeks using an assessment platform. The predictive insights accurately identified qualities that accelerated integration of new hires.
*Global research by IBM and EY also found:
- 70% acceleration in fulfillment with predictive hiring techniques
- 2x more accurate forecasting of applicant performance
- 50-70% potential increase in sales productivity using optimized hiring
The evidence strongly supports using assessments to hire right the first time. Prioritizing assessment-based recruiting leads to measurable upticks in productivity, innovation, retention and customer satisfaction over the long term.
Pre-Employment Assessments Offer a Competitive Advantage
The data and science back up talent assessments as a must-have capability for forward-thinking recruiting teams. They no longer represent a nice-to-have but rather a competitive necessity.
Assessments raise recruiting to a new level – an impartial talent advisor powered by data-backed insights you can trust. And with equal opportunity for all candidates, they create a friendlier experience that bolsters your brand as an employer.
The next frontier is leveraging predictive analytics and surveys to uncover hidden traits that drive employee lifetime value. This empowers you to build winning teams tailored to your strategy and vision.
So don‘t get left behind. Now is the time to supercharge recruiting through the power of talent assessments. With the right platform, you can deploy validated assessments tailored to your needs in weeks not months.
The future of work is here. Are you ready to hire top performers at scale? Then let science guide your talent strategy.
Let me know if you have any other questions!
