How Skills-Based Assessments Improve Hiring
Interviews and resumes are common ways to hire people, but they don’t always show what a candidate is capable of. Studies show that about 85% of resumes contain false information, and standard interviews are only 50% effective at guessing how well someone will do on the job.
These are the times when skills tests are useful. Companies can make hiring choices based on data, cut down on employee turnover, and ensure they get the best people by testing their real-world skills instead of just looking at credentials or past jobs.
1. Eliminating Resume Inflation and Misrepresentation
Some resumes lie about a person’s skills, leading to costly hiring mistakes. Tests based on skills help:
- Check the person’s real skills before you hire them.
- People who face real-life situations on the job should be used to test them.
- Instead of looking at history or schooling, focus on skills to eliminate bias.
A LinkedIn study shows that skills-based hiring makes job matches 60% more accurate, ensuring that companies hire people who can really do the job.
2. Improving Job Performance and Retention
- When candidates are chosen based on proven skills, they are more likely to excel in their jobs, leading to: Higher output as new hires require less training.
- Less staff churn, which saves time and money on hiring.
- More engaged workers because they are sure of their skills.
When companies use skills-based tests, employee loss decreases by 25%, and success increases by 20%.
3. Reducing Bias and Increasing Diversity
In traditional hiring, people from good schools or well-known companies are often given preference, but that doesn’t mean they are competent. Skills-based hiring looks at what people can do instead of where they come from.
- It encourages a broader range of abilities, which leads to more new ideas.
- It justifies workers who have learned on their own and people who are switching careers.
Skills-based hiring has led to a 17% rise in workplace diversity, which has helped people make better decisions and be more creative.
4. Hire People Faster and Better
Recruiters usually spend weeks going through resumes and interviewing people more than once. Tests of skills:
- Shorten the time to hire people by finding the best ones early on.
- Save time and money by lowering the chance of hiring the wrong person.
- Let the people in charge of hiring make choices based on facts and figures.
According to a study, companies that use skills tests can fill jobs 27% faster than those that use more standard methods.
Conclusion
Skills-based tests are changing the way people are hired by prioritizing skills over qualifications. Businesses can build a better, more capable workforce by eliminating resume bias, keeping employees longer, hiring more people from different backgrounds, and making the hiring process run more smoothly.
Companies that use these tests will be better able to find and keep top employees as more companies hire based on skills.
Our screening services and skills-based assessments improve team effectiveness. Contact us for help with your recruitment process and hiring the best talent.