THEBUSINESSVALUEOFPRE-HIREASSESSMENTS

Acomprehensivereportshowingthehighcostofmakingpoorhiringdecisions

THEWORLDISFACINGATALENTSHORTAGE,ANDYOUAREHIRINGTHEWRONGPEOPLEAccordingtoarecentAberdeenResearchdocument,79%ofcompaniesindicatethereisashortageofcriticaltalentavailableinthelaborpool.AndanIBMTechTrendsreportdeterminedafull90%oforganizationsdonothavetheskillstheyneedtobesuccessful.Withsuchadearthoftalent,choosingtherighthiresismoreimportantthanever.Andthetaskisbecomingmoredaunting.Mostorganizationsspendcountlesshourssiftingthroughresumes,lookingfortheperfectcandidate.It’sagamble.Asthisreportpointsout,resumescan’ttellyouifacandidateisaperfectmatchforyou.Worse,46%ofresumescontainsomeformoffalseinformation.Youneedsomethingbetter.Usingthedatainthisdocument,you’llbeabletoquantifythehighcostsofchoosingthewrongcandidatesineveryareaofyourorganization.Youwillalsoseethefinancialbenefitsapre-hireassessmentstrategywillprovide.

TABLEOFCONTENTSTheWorldisFacingaTalentShortage..............................................1

TheHighCostsofaBadHire.............................................................2

CompaniesareHiringtheWrongPeople.Why?..............................3

TheHighCostsofaBadHire.............................................................4

Pre-hireAssessmentsImproveHiringSuccess..................................4

WebAssess:ABetterWaytoHire.....................................................5

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THEWORLDISFACINGATALENTSHORTAGE

79%OFCOMPANIESINDICATETHEREISASHORTAGEOFCRITICALTALENTAVAILABLEINTHELABORPOOL.

Despitehighunemploymentnumbersaroundtheglobe,accordingtoarecentAberdeenreport,79%ofcompaniesindicatethereisashortageofcriticaltalentavailableinthelaborpool.1

AFULL90%OFORGANIZATIONSDONOTHAVETHESKILLSTHEYNEEDTOBESUCCESSFUL

And,accordingtoanIBMTechTrendsReport,afull90%oforganizationsdonothavetheskillstheyneedtobesuccessful.2

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COMPANIESAREHIRINGTHEWRONGPEOPLE.WHY?

CITEINSUFFICIENTTALENTINTELLIGENCE

AccordingtoaCareerBuildersurvey,companiesarehiringthewrongemployees,despiteadiminishingpoolortalent.Employersciteinsufficienttalentintelligenceandtheneedtofillthejobquicklyasthereasonsforbadhiringdecisions.3

SAIDTHEYNEEDEDTOFILLTHEJOBQUICKLYIntheCareerBuildersurvey,26%ofemployerssaidtheyweren’tsurewhytheymadeabadmistake,buttheycitedinsufficienttimetoproperlyvetcandidatesandalackofsufficienttalentintelligenceasthetopreasons.Andwhenyouconsider46%ofresumescontainfalseinformation,yousimplyneedmore–andbetter–datatohiretherightcandidate.

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THEHIGHCOSTSOFABADHIRE

NEARLYSEVENINTENBUSINESSESAREAFFECTEDBYABADHIREEVERYYEAR4

Hiringmismatchesresultinhighturnover,lowersales,poorcustomerservice,absenteeism,higherhealthcarecosts,workplaceviolenceandtheft–substantialcoststoanorganization'sbottomlineandreputation.

ITCANCOSTFIVETIMESTHEANNUALSALARYTOREPLACEABADHIRE5

AccordingtotheSocietyforHumanResourcesManagement(SHRM),itcancostfivetimestheannualsalarytoreplaceabadhire.AndaCareerBuildersurveyshowed25%ofemployersreportedabadhirecostthemmorethan$50,000USD.6

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PRE-HIREASSESSMENTSIMPROVEHIRINGSUCCESS–DRAMATICALLY

29%LESSTURNOVERMEANSLESSCHURNANDBURDENONLONGERTERMEMPLOYEESANDMANAGERS

Morethanever,companiesareincreasinglyrelyingonnewtechnologyandprehireassessmentstomakeeducatedhiringdecisionsandreducethecostsofbadhires.Pre-hireassessmentsproducenewhireswhowillbeactivelyengagedandeagertoperform.BersinbyDelloitediscoveredpre-hireassessmentsreduceemployeecompetencetimeby25%,reduceturnoverby29%,andyield13%moretopperformersand17%fewerpoorperformers.7

25%FASTERCYCLETIMEGETTINGANEWHIREUPTOSPEED

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WEBASSESS:BETTERWAYTOHIRE

WEBASSESSUSESANINDUSTRY-LEADING3-STEPPROCESS

WebAssessusesanindustry-leading3-stepprocesstoquicklyandconfidentlyidentifytherightcandidate:

• Skillsandabilitytestswillidentifywhatacandidateknowsandcando.• Personalityinstrumentsdetermineifthecandidatewillbeagoodfit.• Structuredinterviewtoolsmakeiteasyforyoutoconductyourfinal

screeningwithquestionsproventoidentifythestrengthsandweaknessesofthecandidate.

WebAssessisthe#1on-demandpre-hireassessmenttoolforenterprises,smallbusinessesandstartups.Tostartyourfreetrialvisit:

trywebassess.com/trial

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TryWebAssessForFree!Nocreditcardrequired.Startyourtrialtoday.

Visittrywebassess.com/trialnow!

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EndNotes

1AberdeenGroup,2015:ZachLahey,“Pre-hireAssessments:AnAssetforHRintheAgeoftheCandidate2The2012IBMTechTrendsReport,FastTracktotheFuture,IBMCenterForAppliedInsights,20123CareerBuilderSurvey-CareerBuilder,2015:JenniferGrasz4CareerBuilderSurvey-CareerBuilder,2015:JenniferGrasz5CareerBuilderSurvey-CareerBuilder,2015:JenniferGrasz6CareerBuilderSurvey-CareerBuilder,2015:JenniferGrasz7ImprovingtheCandidateExperiencewithPrehireAssessments:AFormulaforSuccess,April2014.©BersinByDelloitte