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Why Your Organization Should Use Assessments

07/07/2021

Assessments tests are a standard step in modern hiring processes, especially in organizations that value data-driven decision-making. Cognitive ability tests, in particular, have additional benefits in the current hiring environment. These tests measure candidates’ mental abilities, such as managing priorities and adapting to change. Here are five compelling reasons to build these assessment tests into your hiring workflow.

  • Predicting candidate performance. Assessment tests like Modern Hire’s Virtual Job Tryout™ predict candidates’ future performance in the position using advanced artificial intelligence (AI) and predictive analytics. The Tryouts measure candidates’ abilities and core competencies that help drive success in more than 40 different roles. Modern Hire has developed the algorithmic models for these assessment tests based on more than one billion candidate interactions and two decades of diligent, data-driven client research. Modern Hire can also customize a Virtual Job Tryout model using an organization’s performance metrics. In these cases, the assessment test is even more predictive of candidates’ success in that organization. Read how Walmart utilized a customized Virtual Job Tryout to successfully hire more than 500,000 retail associates within months. 

Modern Hire competency model

  • Predicting turnover. Assessment tests can be focused on predicting turnover, too. Identifying and making offers to the candidates least likely to leave is a critical talent retention strategy in retail, hospitality, logistics, and other industries that traditionally have high turnover rates. Recruiters can gain insight into candidates’ career stability with text-based assessment tools that scientifically predict turnover during screening. Being able to qualify candidates to move ahead early in the hiring process based on their likelihood to stay in the job is critical in hiring for high-volume, hourly roles.
  • Assessing non-traditional candidates. Unlike jobs skills tests, cognitive ability assessments help recruiters understand candidates’ potential in a role they’ve never held before. This is a key competitive advantage at a time when voluntary quit rates in the U.S. are at near-record levels. When recruiters have candidates in their applicant pool who want to try a new direction in work, cognitive ability assessments allow them to effectively and efficiently consider them for the job.
  • Improving the candidate experience. Well-designed assessment tests can enhance candidates’ experiences with hiring. Some offer multimedia job simulation exercises and realistic job previews to show candidates what a day in the role is really like. This kind of insight helps candidates feel more confident in their decision to pursue the job (or leave the process) and accept an offer. Well-designed assessment tests also give candidates multiple opportunities to demonstrate their fit for the job and present themselves to the best of their ability.
  • Enabling data-driven hiring. Recruiters can utilize science-based, validated assessment tests to transition to a data-driven hiring approach. A recent study by Aptitude Research indicates that while one in three organizations uses data in their recruitment decisions, only 50% trust their data sources. Validated assessments tests generate data that is trustworthy. Recruiters can emphasize assessment test data and reduce reliance on resumes and social media profiles – two data sources that have low predictive value.

The transition to data-driven hiring also creates capacity for continuous improvement in hiring performance. Data tracking and analytics enabled by assessment tests allow recruiters to measure, evaluate and adjust hiring strategies to align with recruiting team goals and larger organizational objectives. To learn more about the talent analytics approach organizations are adopting to drive better hiring decisions, review Redefining Success: Talent Analytics for the Future.

Responding to candidate shortages
When a workforce shortage occurs, as is happening now, recruiters sometimes make the mistake of dropping assessment tests from their hiring process. They may think assessments slow the hiring process down, creating more opportunities for candidates to drop out. Or, they may feel a narrowed candidate pool is not beneficial in that situation.

However, with no assessment tests in place, quality of hire is likely to go down, and turnover will increase. There is an alternative to this sacrifice of long-term hiring performance: Adjusting the assessment test cut-rate. This strategy alleviates some of the pressure of candidate shortages while at the same time maintaining the robust process that leads to good hiring performance. 

If eliminating assessment tests is something your recruiting team is considering, read this white paper first. It contains more background on assessments during a labor shortage and strategies to increase your candidate flow.