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10 Reasons to Keep Using Employee Assessments in 2020

January 9, 2020

10 Reasons to Use An Online Hiring Assessment in 2020

Online hiring assessments have been proven time and time again to be key in enhancing hiring processes across the globe. They are especially valuable in larger organizations that have ample resources and need to hire in larger volumes. We continue to identify reasons online hiring assessments are vital for success as we forge ahead into a new decade. Below, I discuss 10 reasons to continue to use employee assessments in 2020 and beyond! 

10. Data – Data are the new business currency. Well, not exactly, but data collection is becoming one of the top priorities for every business. Why is this? Two words: machine learning. Machine learning has become a vital aspect of any successful organization. However, machine learning does not work well if you don’t have enough data points to support the analysis process. It also helps to have a continuous stream of new data coming in. This will only help the machine learning model get better and better. Depending on test taking volume, online hiring assessments can accomplish these two objectives, large data collection and a steady stream of new data.

9. Legal Protection – If done the right way, an online hiring assessment should provide a validation study that shows the hiring assessment is a valid predictor of job performance, the test content is reliable, and the test does not result in adverse impact against subgroups protected by Title VII of the Civil Rights Act. Having a valid, reliable, and fair hiring assessment will provide your organization with a stronger legal defense should any litigation come knocking at the door.

8. Better Performing Hires – As previously stated in reason number nine, the validation study shows to what statistical and practical extent the test is correlated with job performance. If it is an assessment of high quality, it should show a good correlation between individuals who score high on the test and individuals who also perform at high levels on the job.

7. Reduction in Turnover – As the cause for turnover can come from so many different directions, a high quality hiring assessment should reduce the number of bad hires that could become early exits from the company. It is possible that turnover could increase with an assessment. For example, if an organization has a very bad culture but hires top talent based on assessment results, the top talent will likely have alternate options and decide to leave the toxic environment. Assessment results should be interpreted with consideration of your organizational culture and realistic expectations for top talent to find high job satisfaction. One solution might be to pass on candidates scoring the highest on the test and consider hiring the next level down.

You also might be interested in:  The 5 Biggest Myths About Pre-Employment Assessments

6. Order and Structure – Hiring assessments can help standardize the hiring process and add a level of order and structure to a process that has little or none of it currently. Having order and structure in your hiring process ensures that every candidate is going through the same fair hiring procedure which is helpful for legal defensibility. It can also help relationships between HR and hiring managers – if a hiring manager wants to research an incumbent for a promotion, they can use the assessment report from years prior to determine the progress made since that employee was hired.

5. Company Reputation – Many new simulations and other methods of assessing candidates online can look really awesome and innovative. Candidates being progressed and rejected will take note of the process, and if your organization is testing with the latest and greatest technology, it can not only influence a strong candidate’s decision to accept the job offer, but probably more importantly, it can have a positive influence on the brand perception of those thousands of candidates who are rejected.

4. Organizational Culture – Similar to reason number five, perception is everything. When the first impression of a new company is positive, it sets the tone for the new employee’s life with the organization. The hiring process is one major way that organizations can control their organizational culture.

3. Because Really Successful Organizations are Doing It – Yes, we all know that just because someone else is doing something is not necessarily a good reason to do something. However, if a very successful individual says that her success, in part, comes from a certain way she manages her money, then maybe I want to know more about the way she manages her money. Successful companies have said the same thing about online hiring assessments. It helps them hire good fits for specific roles.

2. Online Hiring Assessments are Getting Better and Better! – Right now there are several different methods used to measure candidate knowledge, skills, and abilities. Self-report behavior/personality, situational judgement, cognitive ability, simulation, and physical ability to name a few. However, this science is continuing to grow and innovate. Gamification is becoming a popular way to make these assessments more exciting. Depending on the target job, there are innovative ways to measure for the best candidates and with the help of machine learning, this area of discovery is only accelerating.

1. It’s Science! – Most of the high-quality hiring assessments are designed and developed by PhDs or master’s level educated professionals. They have studied human psychology and the best ways to measure human knowledge, skills, and abilities through online assessments. The number of studies done to enhance this science is never ending. There are some very clear facts backed by science in this field and one of those is that online hiring assessments, if done correctly, do indeed predict job performance.

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Trevor McGlochlin Trevor McGlochlin is a Research Consultant at PSI. He leads the Financial and Automotive verticals within R&D. He earned a Master of Science degree in Industrial and Organizational Psychology from Florida Institute of Technology. His areas of expertise include selection, employee turnover, organizational development, applied research, and statistical analyses. His analysis work is centered around validation, adverse impact, turnover analyses, assessment scoring, and other data analysis.