As I have conducted psychometric testing in most parts of the world, I have been intrigued as to why the USA has done much less testing when hiring new people. Most major companies in Europe, Africa, and Asia conduct very through batteries of personality, skills, and interest testing to maximize the success rate of their hiring investments. The main reason for this difference in approach around the world, other than getting the best person for the job first time, is because it’s hard to remove a bad placement due to the labor laws and unions that protect the workforce. Getting stuck with a bad placement could take years of production and revenue loss in those protected labor environments. In the USA it has traditionally been very easy to let someone go at any time and for any reason, even at a senior level, so the need to test more thoroughly has been seemingly unnecessary. This old approach is however very short-sighted in that it adds an unnecessary element of financial, productivity, and reputational risk. Current research shows that:
- The cost of a bad hire can reach up to 30% of the employee’s first-year earnings — US Department of Labor
- 74% of companies who admit they’ve hired the wrong person for a position lost an average of $14,900 for each bad hire — CareerBuilder
- Bad management hires cost $240,000 in expenses related to hiring, compensation, and retention for most senior positions — The Undercover Recruiter
For a fraction of the cost, literally a few hundred dollars, you can get the right person in the right seat as we work with you to profile the competencies needed and then do the right testing to match the best people for your key positions. Throughout my career, I have used all of the major tests multiple times and know which are the most effective and so Wilford Scholes uses the best in practice tools to ensure you have the information you need to select the best people. This approach is proven to dramatically reduce staff turnover and improve productivity. Contact us for a free consultation to explore how we can have an impact on you.
BY COLIN WILFORD