The availability of the assessment tools is generally very broad. From the most common unstructured interviews and resumés to the job tryout procedures and work sample tests. It is not a surprise that the recruitment sphere is changing every year. Whether it is the recruitment or the candidates themselves. However, it is always a good tip to keep up with those changes to make your hiring process successful.
In a new Korn Ferry study that includes a sweeping country-by-country analysis, researchers found that by the year 2030, there will be a global human talent shortage of more than 85 million people. However, this does not mean that people don’t have talent. We know that everyone has talent, they just need a chance to show it.
Therefore, recruiters need to give everyone a chance to showcase their full potential. Choosing the right assessment tools is the key factor when it comes to the company’s prospects, employer brand, talent acquisition, overall candidate’s experience, and other factors that influence the company’s operations.
As mentioned at the beginning of this blog, there is a lot of ways of assessing potential candidates. All screening methods dispose of different qualities, different abilities to predict future job performance, different levels of transparency, the diverse need for resources, and much more. Therefore, we can agree that all assessment methods have different perks and drawbacks. However, some of them have more pluses and some of them have more minuses.
In the previous blog post, we talked about the meta-analysis conducted by Schmidt & Hunter in 1998, where they looked through 85 years of research findings, evaluating the predictive validity of different assessment tools.
Work sample tests in the combination with the GMA (General mental ability test) obtained the best score in the conducted meta-analysis, with a score of 0.63 on the scale from zero to one. In other words, the ability of the cases to predict a candidate’s future job performance is quite high, which is one of the biggest advantages of the case-based screening itself. But let us talk about this later in the blog post.
What is the recruitment case?
So, before we dive more into the other perks of cases in recruitment. Let’s take a closer look at what exactly are those work sample tests or recruitment cases.
In 2006, Ployhart introduced a definition of the recruitment case which explains that it is “a test in which the applicant performs a selected set of actual tasks that are physically and psychologically similar to those performed on the job.”
So, what exactly does it mean? When you are hiring new employees, they will be introduced to a set of tasks that correspond to the tasks that are performed at the position they are applying for. For instance, a candidate applying for a sales assistant position will be asked to solve a case consisting of sales-related tasks.
The recruitment case usually consists of two – four tasks that will take 30-120 minutes for candidates to solve, depending on the complexity.
The top 5 advantages of Recruitment cases: Why use them?
As we mentioned before, one of the biggest advantages of using recruitment cases is their ability to predict how will the candidate perform in his/her future position. However, by using recruitment cases you can achieve even more than that. Let’s take a closer look at the different perks of this assessment method.
Predict not assume
As we mentioned above, the biggest advantage of case-based screening is the fact that this assessment tool used alongside the GMA (General mental ability test) is the most successful when it comes to the prediction of future job performance. (0.63 points on the scale from 0 to 1)
In comparison with the resumés, where the biggest aim is on previous experience and education, showed a correlation of 0.06 between previous experience and job performance.
It is crucially important to predict how well will the candidate perform the job in question, and that is where case-based screening comes to the game. Prediction based on showcased skill set, knowledge, and approach administrated directly on the tasks similar to the ones performed at the job will provide you with a better overview than just a piece of paper with the keywords and headline resumé.
This leads us to another advantage which is directly influenced by the predictive validity and that is avoided bad hires.
Avoid bad hire
The survey conducted by CareerBuilder shows that nearly three in four employers are affected by a bad hire. Did you know that the average cost of one bad hire is nearly 15,000$? However, 40% of the companies which participated in the mentioned survey admitted that they had spent at least 25,000$, and 25% of them had paid more than 50,000$ for poor hires. How come those payments are that high?
The reason is that employees with bad performance will affect the overall performance of the team which might lead to negative future results. An unhealthy working environment has a negative effect on innovation, employee motivation, results, etc.
And not only that, but bad hires might also increase employee turnover, cause the overall employer brand and morale to decline, and negatively affect organizational culture.
To avoid bad hires, recruiters should focus on having a broad talent pool for every job opening. As well as having a recruitment strategy that will provide them with a realistic preview of the candidate’s skill set, experience, and knowledge.
Keep the talent
As we mentioned before, the talent shortage is challenge companies have to deal with. Korn Ferry conducted another survey with 1,500 leaders around the world, and 66% of them said that there will be a shortage of talent by 2020. However, 95% of them are ensured that their company will not be experiencing any problems regarding the talent shortage.
Let’s use resumés as an example. A lot of people are familiar with the information that the majority of resumés are screened by ATS tools.
Previously, I have seen a post on LinkedIn, from a girl who was applying for a position at Spotify. Therefore, she designed her resumé in a Spotify theme and many people advised her to redo the resumé because it will not make it through the ATS.
We can agree that by using ATS tools, recruiters can actually lose talented applicants. According to CareerBuilder, the average cost of losing a good hire is nearly 30,000$. And that is just because candidates chose a wrong selection of the keywords, or they have focused on the design rather than the keywords.
This is an example of how important it is to use appropriate screening methods that will give everyone a chance to unleash their full potential.
Candidates preserve recruitment cases to be favourable in terms of fairness. In the two most extensive meta-analyses, recruitment cases, have been rated second overall in perceived fairness. How come? The reason is the information provided by the candidates and the company itself. Candidates will usually provide, before the actual solution, nothing but their email addresses. On the other hand, the company will provide candidates with a realistic job preview. That means a company is honest about the job in question as well as the challenges included.
This creates a fair and transparent recruitment process, which creates a foundation for a successful employer brand. And successful and well-managed employer brand is a key to attracting more and more applicants which also creates diversity within your workplace. So, let us dive more into that.
Strenghten your Employer brand
What is an employer brand? Employer brand or employer branding is the perception of your company as an employer between the job seekers, potential candidates, employees, and stakeholders. It is the process of managing and influencing your reputation between the mentioned parties and a picture of what kind of values the company gives to its employees.
According to LinkedIn, 75% of candidates will research a company’s reputation before applying for an open job position, and other researchers discovered that a strong employer brand reduces employee turnover by 28% and cost per hire by 50%.
There is a lot of ways how to build and strengthen your employer brand, however, the hiring process is one of the most important assets of employer branding. Do you wonder why?
The hiring process or recruitment is usually one of the first and most important professional encounters of potential candidates with your company, and it has a huge impact on your employer brand. Therefore, it is important to manage recruiting carefully and with respect. Studies suggest that 61% of employees over the age of 45 have either personally experienced or seen discrimination at work.
As mentioned before, case-based screening is a transparent and fair recruitment process that removes any type of bias from the hiring processes, meaning it eliminates the presence of discrimination. This is a huge asset to your employer brand, since people value and remembers the way how they were treated during the hiring process, despite the fact of they were hired or not.
As mentioned before, case-based screening brings along a lot of advantages. Building your employer brand is one of them, but don’t forget that one thing leads to another, and in the end, the case-based screening will create an actual chain that might result in the positive prospects of your company.