Proving and Improving Your Hiring ROI with Talent Assessments

Hiring costs are high and getting higher: the average cost per new employee was $4,700 in 2022, according to SHRM research. Those costs are even higher for more experienced contributors and leaders — and once you factor in soft costs, it can run around three to four times the salary of the open position. 

Small wonder then, that HR leaders are looking for ways to maximize their hiring ROI. Many overlook one of the best ways to do this: by including talent assessments in their hiring processes. Not only will your recruitment ROI be maximized with this one tool, they offer a host of other benefits to your organization as well. Here are the top perks of including talent assessments in your hiring process. 

1. Validating Hiring Decisions 

Bad hires are costly mistakes, but it can easily happen, especially when candidates aren’t honest on their resumes. Talent assessments help you more accurately determine what skills a candidate truly has so you can make the right choice the first time. 

Plus, if you use Cangrade’s Pre-Hire Assessments, you can use results from one 14-minute assessment to match applicants to all of your open roles, even ones they didn’t apply for, to find the perfect fit. 

2. Encouraging Internal Mobility Opportunities 

Internal mobility is a great way to boost your retention rates and fill open positions with the wonderful people your organization already has, whether it’s with a promotion or a lateral move. Identifying the people who are best suited for those opportunities can be challenging — unless you use Pre-Hire Assessments to catalyze your employee mobility strategy. By testing your existing employees, you can easily predict their fit for lateral moves or promotions.

By giving employees the opportunity to grow at your company, you won’t force them to leave to boost their careers and be faced with the bill for hiring their replacement and adding to your recruiting ROI. 

3. Identifying Development Pathways 

Your recruitment ROI is about more than just getting people into jobs, it’s also based on keeping them around for the long term. One of the most effective ways to do that is creating better pathways for career development and growth. 

Talent assessments provide a big assist here as well — they can identify the skills employees need to further their careers and grow them however they prefer. By identifying development priorities and what motivates your employees to succeed, you’re encouraging those valuable hires to stick around and grow with your company. 

4. Improving Your Candidate Experience 

Candidate experience is a surprisingly critical part of maximizing your hiring ROI as well. If you’re finding that your top candidates decline your offers frequently, you might be missing out on the best talent which decreases the potential productivity of your workplace. 

Speed is a major metric for the candidate experience these days, and talent assessments can help make your hiring process faster by narrowing the pool of potential candidates more quickly. Also, candidates prefer hiring experiences that seem fairer and more equitable even if they don’t get the job, and talent assessments contribute to this feeling because they’re objective. 

5. Accurately Predicting Candidate Success and Tenure

If you could predict how likely an employee was to stay at your company for more than the median 4.1 years of tenure, that would allow you to maximize your hiring ROI by offering roles to the people likely to stick around. Hiring and turnover are both expensive, after all, and having higher retention rates is better for both employee morale and your bottom line. Using the right talent assessments can deliver these benefits so you can supercharge your talent search and acquisition efforts. 

Altogether, these hiring and talent assessment tools will ensure that you can increase your recruitment ROI as well as candidate and employee satisfaction.