Case Study: 5 Benefits of Using Pre-Employment Assessments
Posted by Robert Dougan on March. 7, 2017
The goal of the hiring process is to ensure continued productivity and improved retention, which is why more and more companies are adding pre-employment (or, pre-hire) assessments to their screening and selection processes. These tools make accurate predictions about candidates’ potential performance and retention – and, they gather crucial intel on prospective hires to support continuous improvement within talent acquisition.
We recently carried out a case study with a large telecommunication organization to measure the impact of implementing pre-employment assessment tools. Below, we discuss the top five benefits this organization attained.
Pre-Employment Assessment Case Study: Telecommunication Organization
The Situation: A large call centre with high turnover.
The Goal: Achieve improvements using pre-employment assessment tools to gather additional metrics in the screening and selection process.
1. Created a Database for Candidate Analytics
Our pre-employment tools helped create a database of suitable candidates for the company to draw upon for future hires. In the first six months, the client hired 900 reps and developed a database of an additional 460 potential hires.
Over time, the client will be able to use this database at any given moment to compare hires to recruits on key metrics captured in the pre-hire assessment tools.
2. Pinpointed Best Candidate Sources in Terms of Quality and Quantity
Pre-hire tools allowed this telecommunications company to understand which candidate sources were providing the most qualified, quality candidates. The client used this insight to reduce costs by focusing resources on their best recruiting sources.
The tools were also valuable in screening large quantities of candidates from colder sources. Using the selection and screening tools together, the company was able to “warm up” cold source applicants to ensure only qualified candidates were coming through.
3. Improved Time to Hire
In this case study, adding assessments to the company’s screening and selection process reduced Time to Hire from 3 weeks to 1.5 weeks.
Recruiters felt the tools enriched the process because they could now focus their time on assessing “High Potential” candidates, thus eliminating the need to spend time on unqualified candidates.
We studied the key predictors to performance for the role and established a benchmark using the pre-hire assessments. Using the custom-benchmarked assessment designed to showcase the important information, recruiters felt they were better prepared to identify candidates more quickly based on key drivers.
The recruiters also received reports that provided further interview questions, which ultimately enriched the recruiter experience as well as the Time to Hire.
4. Improved Turnover
Pre-employment assessments help improve the bottom line by reducing turnover.
In our case study, call center hires who had gone through an assessment in the screening and selection phases saw a 40% reduction in turnover, generating annualized savings of over $2,700,000.
It is important to note that the company only spent approximately $45,000 on using the pre-hire assessment tools, so the cost savings were well worth the investment.
5. Increased Productivity
The most indispensable benefit of using pre-employment assessments in the screening and selection process is increased productivity!
Our client used an assessment benchmarked to their current top performers in the call center sales position, allowing them to hire with a focus on replicating success. The benchmarked assessment identified which qualities were essential for top performers in their specific organization and helped them assess those qualities in incoming candidates.
As a result of the benchmarked assessment, the company increased revenue per call by 74%.
Pre-Employment Assessments Help You Build Success
Our research has always shown that building a successful team depends on the analyses of screening and selection tools. Gathering data during selection and embedding these assessments into your process enhances your ability to ensure quality candidates are entering the recruiting pipeline and achieve new levels of productivity and profitability.
With over 35 years of research, SMG can provide the pre-employment assessments and data-driven insights your organization needs to predict retention and performance when hiring. Contact us now!
Stay tuned for the launch of our new Talent Analytics Workshops, offered through the SMG Academy.
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