Jun 20, 2014

More organizations than ever before are recognizing the benefits of using assessments to evaluate candidates’ skills and knowledge as well as cultural fit. But, most still struggle with providing evidence that assessments can deliver real benefits to a company’s bottom line.

In fact, according to Aberdeen Group’s 2014 Assessments report, “Just 14 percent of organizations indicate that they have data to prove the positive business impact of their assessment strategy, whether pre- or post-hire.”

The companies that do use data to determine the ROI of their assessments have a couple of things in common.

A tangible link to employee performance

First, these Best-in-Class companies surveyed by Aberdeen create a tangible link between assessments and the ultimate performance of the employee. In fact, a full 55 percent of “Best-in-Class” companies link pre-hire assessments to employee performance, compared to just 27 percent of “Industry Average” companies and 15 percent of “Laggards.”

The Best-in-Class companies don’t just use assessments to determine the best-fit of potential employees, though. What truly differentiates these companies is their ongoing use of assessment and performance data throughout an employee’s career – 51 percent of Best-in-Class organizations link post-hire assessments to ongoing performance.

When companies continue to benchmark employee performance against assessment data, the value of their assessment investment is proven.

When it comes to measuring assessment value, Aberdeen recommends adopting a “trust but verify” mindset. In other words, companies should corroborate their gut feeling and anecdotal evidence that their assessments are working with the hard data that proves they have hired the best-performing employee for the position.

How to measure your success

Consider taking these steps to measure the success of your assessments:

  1. Use the data already available. Companies should leverage the HR metrics they already track, like employee turnover and performance. By looking at what constitutes a top performer, companies can better determine what to look for during an assessment.
  2. Partner with the right company. Selecting an assessment provider who offers the latest in innovative technology and selection process science is critical. Companies must look for a solution that can be configured to their specific performance needs and that can be integrated with existing ATS and HRIS systems.
  3. Connect to the bottom line. Effective assessments can be linked to improvements in employee performance and reductions in turnover. Companies can use measurement data to demonstrate the business performance gains that can be achieved through best-practice assessments.
  4. Reassess the assessments. Making even small changes to the selection process can result in large, measurable gains in a company’s overall performance. Companies need to regularly evaluate the assessments they are using to ensure they are in line with changing market demands, the expectations of the talent they seek, and other trends that may affect the usefulness of the assessments.
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