“Companies who use pre-employment assessments are 24% more likely to have employees who exceed performance goals” (Source: Aberdeen Group)
Pre-employment testing is a screening tool employers use to standardize and strengthen the hiring processes. Many companies use tests during recruitment to evaluate candidate skills, knowledge, personality, job fit potential, and other attributes before making a final hiring decision. This article discusses how a pre-employment testing process allows employers to improve hiring practices, reduce turnover, and improve workforce performance.
What is a Pre-Employee Test?
A Pre-employment test is an employment screening tool used to judge a potential hire’s skills, knowledge, and capabilities. These tests can range from job knowledge tests to emotional integrity or cognitive ability assessments.
Here are examples of types of pre-employment tests used by recruiters:
- Personality tests
- Behavioral assessments
- Cognitive ability tests
- Technical knowledge tests
- Role-based tests
- Remote work assessments
- High-potential identification
- Learning agility assessments
- Language proficiency tests
- Background checks (i.e., criminal record checks.)
Employers choose tests based on relevance to their company and the position being filled.
What is the purpose of Pre-Employee Tests?
Employers use pre-employment tests to introduce objectivity into the hiring process. These tests aim to provide all applicants with concrete, reliable, and standardized (objective) results. The aim is to ensure recruiters make informed and defensible hiring decisions.
What Does Research Tell Us about Pre-Employment Testing?
Research by various organizations has found that pre-employment testing has yielded these outcomes:
- 82% of businesses are currently using some form of pre-employment tests in their recruitment process. (Source: SHRM)
- Recruiting managers who utilize pre-hire assessments in their recruitment process report 36% more satisfaction with their final (hiring) decision. (Source: SHRM)
- Companies that use pre-hire screenings report a 39% lower turnover rate (Source: Aberdeen Research)
- Organizations that use pre-hire assessments are 24% more likely to have employees who exceed performance goals. (Source: Aberdeen Research)
Companies Utilizing Pre-Employment Tests
Type of Test: Cognitive ability tests, personality questionnaires, and situational judgment tests.
Effectiveness: Google’s hiring process is well known for its rigor and efficacy in identifying candidates who possess strong technical skills and fit well within the company culture.
The use of these tests helps reduce turnover and ensures employees can handle the demands of their roles, contributing to Google’s high levels of innovation and productivity.
IBM
Type of Test: Cognitive ability tests, skills assessment tests, and personality questionnaires.
Effectiveness: IBM uses these tests to align potential and current employees with the company’s evolving technology and market needs.
The company’s strategic use of employment testing allows for effective workforce planning and development, facilitating ongoing adaptation to industry changes and maintaining a competitive edge.
AT&T
Type of Test: Customized skills tests, personality assessments, and job knowledge tests.
Effectiveness: AT&T employs pre-employment tests to ensure candidates possess the necessary competencies and to identify areas for employee development.
This targeted approach allows AT&T to effectively manage its training programs, resulting in better-prepared employees and a more agile response to industry demands.
5 Questions to Help Employers Decide if Pre-Employment Testing is A Good Option
Here are five questions employers should consider when deciding whether to implement a pre-employment test or not:
1) What specific skills or competencies are critical for success in the roles we are hiring for?
This question helps identify whether particular skills, knowledge, or abilities are essential for the job that can be effectively measured through pre-employment tests.
2) Does our organization find it difficult to retain talent? Do we have high turnover rates in certain positions?
Pre-employment tests are a good tool to consider if retention issues or high turnover are an ongoing problem. For example, testing can help ensure candidates are a good fit for the role and company culture, potentially reducing these problems.
3) How effective is our current hiring process in selecting suitable candidates?
Evaluating the current hiring process’s effectiveness can reveal if improvements are needed—such as the addition of pre-employment tests—to enhance decision-making and candidate selection.
4) Can we accurately predict job performance based on interviews and resumes alone?
If predicting job performance from interviews and resumes is challenging, pre-employment tests can provide additional data points to make more informed hiring decisions.
5) What is the cost implication of implementing these tests versus the cost of a bad hire?
Comparing the cost of pre-employment testing with the potential costs associated with hiring an unsuitable candidate (like rehiring, additional training, and lost productivity) can justify the investment in testing.
Limitations of Pre-Employment Tests
Pre-employment testing does have limitations: First, they may not capture a candidate’s full potential or soft skills like leadership and creativity, which are crucial in dynamic roles.
Secondly, the risk of test biases exists, potentially disadvantageous to candidates from diverse backgrounds if not properly designed.
Lastly, over-reliance on testing can lead to overlooking valuable personal traits and experiences. For instance, tests may not accurately measure situational adaptability or real-time problem-solving.
Final Comments
Pre-employment testing can improve hiring practices by providing objective data for decision-making. Employers should balance these tests with evaluations that assess soft skills and personal experiences to avoid overlooking important candidate qualities, such as problem-solving skills or situational adaptability. Moreover, thoughtful implementation of these pre-employment tests can improve workforce quality, increase job satisfaction, and reduce turnover rates.
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