Recruiters face a number of challenges in

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1 New Types of Employee Assessments Offer Opportunities for Employers and Employees Lisa Bordinat Recruiters face a number of challenges in determining the candidates who will be most likely to succeed within their companies. And with organizations facing significant skills gaps, as well as larger numbers of candidates applying for each open position, the ability to find the proverbial needle in the haystack has become simultaneously more difficult and more essential to organizational success than ever before. Yet, wouldn t it be easier if recruiters could get information like credentials from candidates beforehand, enabling them to readily identify candidates who have already achieved the necessary skills and maybe an endorsement in a particular skill or area of expertise? As assessment providers continue to grow and offer new efficiencies and capabilities, employers can enhance their ability to find right-fit talent and benefit from a highly qualified workforce able to advance company goals. The idea of assessments is nothing new; for decades, organizations have sought to look beyond the resume to reveal not only the hard skills that their candidates have, but also the underlying soft skills, personality traits, and other strengths they can bring to the company. What is new is the way in which companies can utilize assessments to drive candidate behavior and engagement and ensure that recruiters gain the insight they need to find better candidates. But the key to successful hiring is for employers to identify these new trends and assessment methods and understand how they can improve the recruiting process. IDENTIFYING NEEDED SKILLS THROUGH CREDENTIALING Recognizing the effectiveness of assessment testing, today s HR teams that are pressed to do more with less are looking for even greater efficiencies in the testing process. Candidate assessments are so effective in determining the best talent that recruiters often face the burden of having to decide among a high number of qualified individuals. As a result, companies will increasingly seek scalable solutions that enable them to prequalify candidates to further streamline the selection process. One of the most recent developments in the assessment testing space is the use of credentials or badges to validate candidates strengths and expertise in particular areas, which enables recruiters to more easily identify individuals with the attributes that can make them the best fit for the position. Although similar capabilities are already in use on LinkedIn with the site s recommendations feature, these recommendations do not always provide useful information or accurately reflect the strengths of the candidate Wiley Periodicals, Inc. Published online in Wiley Online Library (wileyonlinelibrary.com). DOI /ert

2 Employment Relations Today Candidates can simply ask their connections to give them good recommendations, but no matter how many glowing recommendations they collect, recruiters have no way to qualify those data. However, with a robust method for badging candidates who demonstrate certain skills or competencies, not only can candidates highlight their strengths, but recruiters can more easily and rapidly identify right-fit talent and fast-track those qualified precandidates to the next stage of the talent-acquisition process. This is done during the recruitment process and is fully owned by the candidate. Tests are shorter and more typically focused on one or two critical skills. This is important because it keeps the candidate engaged in the process, and the badges that the skills represent will need to be easily described and understood by both the candidate and the recruiter. Forward-thinking assessment providers are already providing this functionality, delivering short, targeted credentialing assessments for their talent pools. Using such a strategy will help keep top talent engaged with the company, while enabling recruiters to find the best individuals for their roles by searching their candidate base for individuals who have received badges in a particular skill. In a true win-win situation for both recruiters and candidates, candidates can achieve as many badging opportunities as they like. Within this context, the badges are voluntary, and candidates have access to all of them. So instead of getting their connections to vouch for their skills and abilities, candidates can have objective proof of their skills and competencies, which will make it easier for recruiters to find the candidates and give them greater confidence in the qualifications and the expertise those candidates can bring to the organization. ENGAGING CANDIDATES THROUGH GAMIFICATION One of the biggest trends in the talentmanagement space as a whole is the use of gamification. A growing number of companies have successfully added gamification to their application processes and training and development strategies. Gamification has a place in the assessment stage as well. With millennials entering the job market in large numbers, employers must figure out the best ways to engage them. And for a generation that has grown up on video games and socialmedia interactions that encourage them to build connections and garner likes for their posts, many enjoy the competitive aspect that gamification brings to the assessment process. When assessments are presented as a way for the candidate to compete against others and show why they stand out, candidates will be more likely to share information about themselves. As assessments can be a time-consuming process, requiring the candidate to provide answers to dozens of questions, gamification can make the process much easier and more enjoyable. Leveraging gamification in assessments can also help address one of the biggest challenges in engaging millennials, who are often characterized as having short attention spans. As assessments can be a time-consuming process, requiring the candidate to provide answers to dozens of questions, gamification can make the process much easier and more enjoyable. Providing the candidate with a badge upon completion, or providing other immediate insight on their strengths or areas for improvement, is also helpful. Not only will this help give them a sense of 12 Lisa Bordinat

3 Summer 2014 accomplishment, but it will also show that the company appreciates the time the candidate spent taking the assessment. ENSURING ALIGNMENT THROUGH JOB ANALYSIS Regardless of whether organizations use assessments in a traditional way or leverage new approaches, any effective assessment strategy needs to ensure a clear understanding of the critical components of the job that drive success; a comprehensive job analysis is the best way to accomplish this. The process entails measuring the knowledge, skills, and personal characteristics required for success in each position. By hiring to the detailed job requirements rather than the subjective whims of recruiters or hiring managers, the company can ensure that the assessment strategy selected adds value and that it is legally defensible. At the same time, employers can better understand the drivers of success for their positions as well as the critical skills and competencies their organizations need. The job analysis also helps to identify the appropriate assessment tools for finding qualified talent, and the company can start its journey toward an effective assessment practice. Organizations typically have the notion that tests can measure everything and will lead them to the perfect hire. However, no test can tell the hiring manager everything, so the company must use its job analyses to determine the most important aspects for each specific job and then decide what to measure. That is why selecting the right test for what the organization needs at a certain point in time is so critical. Once the right test is in place and there is some proof of how effective the test is, the company can start documenting return on investment and measuring the effectiveness of its assessment strategy. LEVERAGING DIFFERENT TYPES OF ASSESSMENTS Companies today have a wide range of assessments they can utilize to help them hire the right talent, including skills-based assessments, personality assessments, and cultural-fit assessments. Historically, skillsbased assessments have been the easiest to implement and will continue to be the major focus in the marketplace, yet more organizations today are moving beyond skills assessments and increasingly leveraging other tests, such as cultural-fit assessments, to determine whether a candidate will fit in with the organization. There is also growing use of specific job-type assessments, such as assessments that can determine a candidate s customer focus for service-oriented jobs. Historically, skills-based assessments have been the easiest to implement and will continue to be the major focus in the marketplace, yet more organizations today are moving beyond skills assessments and increasingly leveraging other tests, such as cultural-fit assessments, to determine whether a candidate will fit in with the organization. Increasingly, employers are looking for assessments that help them find people who will be best suited for their organizations. Companies that must search through hundreds of candidates for their open positions, and thus require larger assessment processes, typically focus on behavioral and cognitive tests that measure job fit, rather than some of the softer skills that can be indicative of New Types of Employee Assessments Offer Opportunities for Employers and Employees 13

4 Employment Relations Today success. However, organizations seeking an individual who knows a particular area of knowledge or expertise tend to stick with skills-based testing. Although staffing organizations have traditionally relied solely on skills testing to measure their candidates, this type of assessment is no longer enough for most positions. This is because the question is no longer just about whether the candidate has the technical skills to excel in the position because they can be trained and developed to gain those skills. Instead, the question is whether the candidate is going to add value to the organization. A high-energy, creative organization will be looking for people who fit in with that culture, in addition to having the needed technical skills and experience. Another major trend is the growing use of job simulations, whereby candidates are tested on how they react to real, on-the-job challenges and situations. Such simulations allow for more job-specific, knowledge-based testing that can provide key insight into a candidate s potential that other assessment methods cannot deliver. As simulation tests can be designed specifically to meet the most unique needs of the company, they can better show how a candidate will react on the job, rather than just identifying their general skills. And although assessments for organizational fit are incredibly popular now, providing an overall snapshot about a candidate s abilities, it can be difficult to measure the effectiveness of these tools. GREATER FOCUS ON IDENTIFYING ROI As the economic downturn and sluggish recovery have caused many organizations to pay more attention to their budgets, companies are increasingly looking at their expenditures and the return on investment (ROI) that their various systems and solutions deliver. As a result, HR teams are under greater pressure to demonstrate the effectiveness of their processes, including assessment testing. Not only does having a clear understanding of the effectiveness of the program help to determine its value, but it can also help to gain executive buy-in and ensure continued investment in assessment solutions. As such, more organizations are actively seeking to measure the impact and effectiveness of their assessment programs. As this trend continues, it is important to keep in mind that the costs and associated ROI are all relative to the specific company Assessments can provide insight into a wide range of factors, beyond simple turnover rates to analytics on the amount of time it takes for a new employee to get up to speed, performancemanagement data, and other financial indicators. and its industry. For example, high-volume hiring organizations such as call centers can see turnover rates between 50 and 150 percent, depending on where the center is located, its compensation rates, the complexity of the associated roles, and other factors. With such a high level of turnover, the cost for each hire is greater than in other workplaces, requiring call centers to adopt strategies that can minimize turnover and ensure that they employ the people most likely to be successful and remain with the company. When call center managers can show the executive board the financial data to confirm the value of assessments, such as by demonstrating how turnover has decreased and how employee tenure has increased, it is easy to see the ROI of using assessments. 14 Lisa Bordinat

5 Summer 2014 In the age of Big Data, the right metrics can build the business case for new or continued investment in particular solutions. Assessments can provide insight into a wide range of factors, beyond simple turnover rates to analytics on the amount of time it takes for a new employee to get up to speed, performance-management data, and other financial indicators. As a result, HR teams can demonstrate the difference in performance between employees hired after an assessment against those individuals who weren t assessed before joining the company, further highlighting their value. LEVERAGING ASSESSMENTS BEYOND THE RECRUITING STAGE As highlighted in a January 2014 report from Aberdeen Group on the value that assessments bring to small and medium businesses, titled Assessments: The Secret Sauce of the SMB Talent Lifecycle, author Mollie Lombardi makes the case for the use of assessments beyond the recruiting stage. More companies have recognized that assessments are beneficial not just in finding the right talent, but also for making other key decisions throughout the talent life cycle. For instance, by conducting assessments of the current talent base, the company can better identify its high-potential employees and ensure that they are put on the right track toward leadership. Assessments are also useful in providing training and development, giving managers clear visibility and insight into the skills where their employees may need additional development. The value of using assessments throughout the talent life cycle is clear; according to Aberdeen s research, top-performing organizations also extend the use of assessments to succession planning, leveraging the insight provided to ensure that the best internal candidates are advanced through the company. In fact, Aberdeen has also found that the vast majority of best-in-class organizations (87 percent) use assessment data when selecting individuals for a succession plan, compared with 73 percent of other companies. Additionally, as the needs of the business evolve over time, so, too, does the profile of a successful employee. Conducting posthire assessments can help ensure that talent is aligned with changing business goals and priorities and enable the company to provide appropriate training and development opportunities today and well into the future. ACHIEVING ORGANIZATIONAL SUCCESS WITH ASSESSMENTS Conducting assessments of job candidates provides recruiters and hiring managers with the ability to look past the words on a resume and identify the inherent skills, attitudes, and knowledge of their job applicants. Conducting assessments of job candidates provides recruiters and hiring managers with the ability to look past the words on a resume and identify the inherent skills, attitudes, and knowledge of their job applicants. Yet as demand for these solutions rises and the provider market expands, it is crucial for employers to leverage the right assessments that can truly improve their talent-acquisition processes. No longer should hiring decisions be based on personality assessments alone; the most successful companies recognize that a mix of skills, behavior, and cultural-fit assessments can provide a fuller picture of the candidate, lead to better-informed hiring decisions, and increase ROI. New Types of Employee Assessments Offer Opportunities for Employers and Employees 15

6 Employment Relations Today As the use of assessments continues to rise, companies increasingly recognize the value they bring throughout all stages of talent management. By using assessments periodically throughout the tenure, and not just for the recruitment process, the company can ensure that its staff has the skills needed to meet organizational goals, while the use of credentialing will ensure that they identify high-performing individuals with proven skills needed to meet current and future objectives. Equipped with the valuable insight assessments provide, the company can hire the right people up front, give them appropriate development throughout their careers, and foster a highly qualified workforce with the competencies to drive continuous success. Lisa Bordinat is senior vice president of Assessment Solutions at Findly, the on-demand talent market leader and a Symphony Technology Group (STG) company. She has more than 20 years of experience working with business leaders to understand issues, identify appropriate solutions, and create high-impact systems that increase an organization s ability to leverage talent and improve business outcomes. She may be contacted via at lisa@findly.com. 16 Lisa Bordinat