Real-World Ways Talent Assessment Benefits the Business
Talent assessment can improve hiring quality.
In general, talent assessments are great for hiring and helping to develop your existing teams. But in reality, there are more concrete, measurable business benefits that come with using talent assessments. When talent is optimized with assessments, the company’s bottom line increases.
How Talent Assessments Work
Talent assessments are often used during the hiring process to identify the best possible person for a given role. While good recruiters and HR professionals can do a decent job of identifying which candidates will make the best employees, without assessments, their efforts can be skewed by personal biases or preferences. Assessments use objective criteria to identify the top candidate for each open position.
Talent assessments can also be used with existing employees to help with strategic planning and hiring from within. By evaluating the current staff, managers can identify skills gaps that may need to be filled for optimal functioning. They can also identify which current staff members would be best suited for promotion.
Another reason to use talent assessments with existing employees is to better understand what motivates and engages them. Without motivation and engagement, employees are more likely to leave the company for another position elsewhere. Many companies have reward programs and other resources to improve engagement and retention, but these programs are pointless until you know what drives your employees. Assessments can be an effective tool for uncovering employee motivation.
Talent assessment improves a company’s bottom line.
Talent Assessment Benefits
When the benefits of talent assessments are discussed, the focus eventually turns to the company’s bottom line. Talent assessments benefit a company’s bottom line because when hiring becomes more efficient and successful, it saves companies a lot of money. It also saves them time, which as they say, is money.
Talent assessments help reduce employee turnover, because they allow hiring teams to proactively determine that a candidate has the skills and the cultural fit for the job. The cost savings will be thousands of dollars per position with this one improvement alone. Longer retention also saves money that would need to be spent hiring a replacement.
“Employment experts have stated that it costs a company between 100 and 200 percent of an employee’s base salary to replace a person. While there was some debate over what that exact number is in a company, this spreadsheet product finally allows companies to determine their actual costs” said Bliss. Gately added, “If you accept that the cost of turnover is 150% of base salary and a company looses 100 people a year at an average base salary of $50,000, the cost of turnover equates to $7.5 million dollars! That figure will surely get the attention of the CEO.” ~Dr. John Sullivan, Head of the Human Resources Management Program at San Francisco State University
Also, hiring better quality talent will translate to increased productivity. Better employees will not only get more done, but they will also make more money for their companies. Productivity increases directly benefit a company’s bottom line.
Cognitive and behavioral assessments are a company’s best chance for improving their talent and seeing real-world benefits that come from those improvements. When companies can come to a deeper understanding of their employees with the help of assessment tools, they will be able to function better as a company, which can lead to other real-world benefits that can also impact the company’s bottom line—sometimes dramatically.
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