“Did you know that 40% of organizations do not evaluate candidates using psychometric and cognitive ability testing during their selection processes? It’s baffling, given that those organizations that evaluate potential hires during the selection processes had an 84% confidence range that their selection processes produced the desired results. (Institute for Human Resources Nov 2011)”
Psychometric Assessment can reduce your turnover by 20%
In ancient times candidates for positions of importance were often subjected to scrutiny of a mystical nature. Soothsayers and magicians of all shapes and sizes were called in to weigh the merits of a possible candidate. This rarely resulted in any meaningful results, but has had the benefit of providing us with some epic works of literature (Oedipus Rex, Macbeth and such…).
Thankfully since its advent some 85 years ago psychometric analysis has served to give employers a valid scientific instrument they can use to reliably predict the performance of a potential candidate at a particular job.
For Human Resource Management professionals psychometric testing is an important step in the recruitment process, as it not only helps ensure you’re hiring the right person, for the right job, and they’re a good fit for your organization, but as a result it also reduces employee turnover.
Simply put turnover is costly. Very.
On average a replacement cost can reach as high as 50%-60% of an employee’s annual salary. Total costs associated with turnover range from 90% to 200% of annual salary. The average cost for replacing managerial and executive positions is 18 months of base pay. That’s a lot of dough to shell out for a recruitment error that could have been avoided, and this is precisely why Personality Testing is such a good investment.
For example, according to Hunter and Schmidt, the incremental predictive value of using the Big 5 Personality Test is a 20% improvement. When this is applied to a typical management position paying 100,000 Baht per month, and the 18 months pay cost of a failed recruitment is 1,800,000 Baht, reduction of that risk by 20% is worth a whopping 360,000 Baht, or about 36 times the cost of testing five candidates (a typical assessment costs only around 2,000 Baht).
Some examples of the highly reliable metrics our clients find most useful are those testing for the following:
Here at PeopleServe we’re are great believers in the use of Psychometric and Cognitive ability testing for recruitment and selection, and we’re confident it’s the best way to select the best people by using the best tools. Look for more information in upcoming blog posts and as always, feel free to contact us if you’d like more information – we’ve got loads and would love to chat!