Managers make hiring mistakes more often than they want to admit. A bad hire isn’t always a toxic employee. Sometimes, the new person turns out to be the wrong fit for the job and the company. Unfortunately, these bad hires cost money. Organizations can drastically reduce hiring costs and mistakes by using assessments.

The Pressure to Hire

Despite more candidates being available in the labor market, employers report challenging conditions as they search for the right hire. As they hunt for great candidates, managers know the rest of the staff is picking up extra tasks to ensure that the workflow continues.

Other times, managers worry about budget allocations. They feel pressured to make a hiring decision before upper management removes the position from their department.

These factors result in a rushed decision and, often, a bad hire.

Relying on the Network

Managers know they have the option of asking candidates to take hiring assessments. But assessments take time. So does interviewing.

As a shortcut, managers turn to the sources they’ve used in the past. For example, they’ll ask trusted colleagues for their best recommendations. Or they may consider a candidate recommended by a current employee.

In their desperation to bring in an employee, they miss important details. They may fail to learn that the candidate doesn’t have the right sales skills. Or the candidate might become a very toxic team member.

Negative Team Impact

Before long, the hiring manager may detect arguments in the workplace. Key employees may leave the department or the company. Direct and indirect costs will add up as a result of the bad hire. Our research puts the cost of these bad decisions in the sales department at about $130,000.

Direct Costs

If a manager loses a good employee because of a bad hire, they will incur additional recruiting and training expenses. They may lose a valuable contract because employees failed to engage and work productively.

Indirect Costs

When dealing with the aftermath of a bad hire, managers may spend a lot of time holding staff meetings. As they attempt to improve the sliding productivity, they will likely fall behind in long-​term planning.

Reputation Hit

If too many employees leave the organization in a short time, word gets out. Ex-​employees may post disparaging comments on social sites. At that point, it becomes even more challenging to recruit star employees.

How Assessments Save Money

Businesses are using objective data to make critically important decisions every day. In their ad campaigns, they count how many people open an email. They track how much revenue increases when they run a discounted price. Now they are using the power of objective assessments to weed out candidates who may turn out to be bad hires.

Some organizations rely on personality assessments while hiring. This approach expands a hiring manager’s insight about a candidate. However, a psychometric assessment, such as TeamTrait^TM, goes a step further. This kind of standardized test also measures an individual’s behavioral style, especially in the context of a work setting.

This unbiased data is crucial for making a better hiring decision. The applicant may try to sell themselves as being an effective new business hunter. But the assessment data may indicate that the person is more naturally suited to a customer service role. Getting the job fit right is one way to avoid making a bad hire.

How Assessments Can Improve Job Descriptions

Some assessment tools, including TeamTrait, come with a service to help hiring managers optimize job descriptions. When hiring to replace an employee, the manager can identify which employees have succeeded in the position. A job description can then be written that emphasizes the hard and soft skills gleaned from these employees’ assessments.

This strategy can save organizations money. Instead of writing a generic description, they can home in on the work skills and traits that fit with the position.

Better Interview Questions to Find the Right Fit

While assessment data can help you weed out candidates, you should also use the information to prepare for the interview. The assessment data and the resume may present conflicting data points about an individual. They may claim to be an easygoing team player, but their assessments show they are a perfectionist.

The interview is the perfect proving ground for you to become familiar with the candidate. In this setting, you can obtain critical data by personalizing the questions. The following type of question will require an in-​depth answer from the candidate:

Describe a situation when time or budget constraints prevented you from doing your best work. What was the outcome?

The candidate’s answer will reveal the details of their thought process and their behavior in a less-​than-​ideal situation.

Why Assessments Matter

It’s tempting to rush through a hiring decision to keep a project on track for completion. But without solid and objective data, you could be making a serious and expensive mistake. Using psychometric assessments is one way to reduce the risk of making a bad hire. Don’t skip this important step.

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