subject: Why Talent Assessment And Recruiting Relate? [print this page] What are the factors that may limit your organizations use of assessments? Well, surprisingly or not, the recruiting process may be one of those factors.
The validation process is an important factor when setting up a talent assessment solution, because it provides the foundation to find an appropriate pre-hire assessment profile. The strength and width of the labor pool is very important when determining how rigorous you can be in designing that profile. A very stringent or selective pre-hire assessment profile will determine fewer candidates to pass the assessment process, and there are big chances to make it more difficult to fill job openings. Despite this, the candidates should be better qualified to perform well on the job.
To demonstrate this, we chose to present an example taken from a contact center organization. In the following example, two assessment hiring profiles were created based on validity evidence and analysis of the candidate population.
In Profile 1, a 75% pass rate was modeled, while in Profile 2 a 50% pass is modeled. In the first situation, it means that out of every 100 candidates, 75 will pass the assessments and be eligible for hire. Meanwhile, the second situation means that only 50 out of every 100 candidates will pass the assessments and be eligible for hire. In conclusion, the more selective the hiring professional can be, the higher the probability to hire an individual who will perform better.
Now, lets assume that all candidates who pass the assessment process are hired and examine $$ collected per hour we will use it as the performance metric to determine quality of hire.
Under Profile 1 more candidates pass the assessment process. So, more candidates who are potentially low performers are allowed into the talent pool for consideration; however, the trade-off is that fewer candidates can be recruited per job opening because more will pass the process (making openings easier to fill). Hires under this profile show a performance increase of $84.85 dollars collected per hour.
Under Profile 2, the average performance increases because lower performers are eliminated by the assessment process. The trade-off is that in order to reach 100 hires, the recruiting team needs to source 66 more candidates. Hires under this profile show a performance increase of $110.70 dollars collected per hour.
In this example, the hiring team has two options to consider. Both options provide them with a substantial improvement over the baseline performance of employees hired without the use of assessments. However, if recruiting maintains enough candidates at a 50% rate to meet their fill rates, then they have positioned the business to benefit from a potential 30% performance improvement in $ collected per hour.
