Are your hiring practices old school?
By Drew Fortin
When it comes to human capital management – hiring especially – many businesses double down on the same old candidate selection tactics only to wonder why things don’t work out. And yet, if you ask them how long they typically spend looking at a resume and preparing for an interview, most of them will tell you that it’s less than the time it takes for them to grab lunch at their local fast food joint. This drive-through approach to hiring can end up costing a lot of money if the new guy or gal doesn’t work out – up to 5 times an employee’s first year of compensation.
Luckily, there’s a way to smarter hiring by incorporating an improved HR methodology with data and the tools that help to decode the human. Let’s face it. Human beings are complicated. We don’t come with instructions. So in order to increase our hiring success rates, we need a better way to predict learning aptitude and workplace behavior beyond what we can gather in unstructured interviews. Though we try to determine those things in interviews by drilling down on education, knowledge, skills, and experience, a structured interview is only 6% predictive of workplace performance. Interviews alone are not going to give us the information we need.
Did you know that by incorporating a behavioral assessment into your hiring process, you can increase your odds of getting it right by almost 4 times, to 23%? Similarly, if you use a cognitive assessment in conjunction with structured interviews, you can increase your predictive rate to 27%. But check this out: Add all three together – behavioral and cognitive assessments along with a structured interview – and you increase your ability to predict workplace performance by 51%.
Once you understand what predicts someone’s behavior and their cognitive abilities, you can use that data for hiring, developing leaders, team building, engagement, ensuring that your employees are in the right jobs, and as a result, your business will grow and start performing at maximum velocity.