Assessments: A significant (but small) investment in the development of your company.
Why do companies use assessments when hiring new employees or when making internal promotion decisions? Because they want to add objectivity to the hiring or promotion decision process. Quite often, human resources professionals and line managers can learn more about their candidate or employee by using assessments in their placement decision processes.
One of the newest assessments on the market is the PXT Select™. PXT Select helps make the very human decisions about hiring and promotion simpler and smarter. It measures a candidate’s cognitive abilities, behaviors, and interests, three areas that impact an individual’s approach to situations in the workplace. Assessment results equip organizations and decision makers with easy to understand information about the candidate, and provide intuitive questions to strengthen the interview process. Companies find they interview better and hire smarter.
PXT Select’s suite of twelve reports (all for the cost of one administration) help organizations to select, onboard, coach, and develop employees. Three of the reports are written specifically for sales-oriented roles.
Assessments are frequently used to reduce turnover in high-turnover positions. Often, turnover is significantly reduced after investing in an assessment process.
The cost of assessments is often a question when employers are considering their use. It is important to consider this cost against the cost of turnover of the position. Commonly accepted guidelines for cost of turnover for a position is in the 1.5 times annual salary range for non-exempt positions and can be as high as 2 times annual salary (and higher) for exempt and executive level positions. When one considers the cost of an assessment and the high value received by the organization of the assessment results in comparison to the cost of turnover, it is a wonder more assessments are not used in selection and promotion situations. In the end, enlightened employers realize assessments are not a cost but an investment in the future success of the individual and the company.
As an example, consider an $80K annual salary project manager position. ABC Company interviews five candidates on-site for the position. All five take the assessment, costing the company approximately $1000. This investment is quite small in comparison to making a bad hire and having the position turn over in 6 months after hire, resulting in a cost of turnover of $120 to 160K! It becomes even less of a concern when you consider the project manager may work in the role for 5 years or longer! For these reasons many employers view the cost of assessments as a necessary investment in company success.
If you are looking to address hard-to-fill roles or high turnover roles, many experts recommend you should consider using assessments to invest in improving the quality of your hires or promotions.
Cory Erickson is owner of Career Momentum, Inc., a Career Partners International firm. Career Momentum is also an authorized PXT Select partner. Cory Erickson is a PXT Select Certified Professional.