Could your business afford to lose £30,000 from hiring the wrong person?
HRreview.co.uk estimated that it costs over £30,000 to replace a staff member following a bad hire when you take into account the lost productivity from the employee as well as the costs of recruiting their replacement. This is unlikely to put large businesses with hundreds of employees and an annual turnover in the millions, out of business. But can small organisations with less than 10 employees and a more modest turnover afford to make a £30,000 mistake?
Psychometric tests are becoming more widely recognised as an essential selection tool instead of just a luxury recruitment add-on. Over 75% of the Times Top 100 companies in the UK and 80% of the Fortune 500 companies in the USA use psychometric tests. They include them in their recruitment and selection procedures and for good reason – Psychometric testing is saving them money. In fact, Personnel Today estimated that Psychometric Testing can reduce recruitment costs by as much as 30-40%.
Tests offer a fair and objective approach to selecting new employees and can benefit someone who is new to interviewing candidates. This is because they will provide a lot of additional information about the individual that someone without experience at interviewing could miss. (Quite a few Psychometric tools actually create a set of interview questions to help the interviewer. For example, Aspects Styles or Who Cares?).
There are many small employers who think they can not afford psychometric tests. They could be tempted to try skill based tests or to start looking for free tests on the internet. Skills-based tests are a useful way to measure things like typing speed, proficiency with Microsoft office etc. However, they do not give an indication of the way an individual will behave in the workplace or for example, their ability to work with complex information accurately and efficiently.
Can I not just find some free tests on the internet?
Free online tests are nearly impossible to find (A quick google search for “Free psychometric tests” will give you loads of free practice tests – something to help candidates prepare to take a test). A properly designed psychometric test which has been rigorously tested to ensure it measures what it is supposed to and can accurately predict job performance takes trained professionals thousands of working hours to design, test, and refine. This is why it is unlikely that you will be able to find quality tests for free on the internet.
However, this does not mean that small business owners need to spend a lot of money on psychometric tests every time they want to recruit someone. Using your knowledge of the job and the services of trained psychometric testers the fact is that psychometric testing could cost you very little depending on how much you would like to know about your prospective candidates. Click the list of Registered Qualified Test Users who meet the standards set by the British Psychological Society to ensure you are using an expert in the area of testing.
You can use psychometrics to gain a huge amount of information about those last two candidates that you think can do the job and you can’t choose between them. Or to reduce the 30 people that you have shortlisted into the 5 people that you should interview, allowing you much more focused time to interview those candidates that you now know are likely to have the knowledge, skills, motivation and attitudes to perform well if you hire them.
As Chartered Psychologists we know the benefit of using reliable and validated psychometric tests, having worked with many small companies improve the quality of candidates they hire and avoid the costly mistakes of hiring the wrong individual.
For further information contact us.