ROI on Pre-Employment Testing.
This Workforce.com article, Estimating the Financial Value of Staffing-Assessment Tools takes a stab at it. It spells out four back-of-napkin formulas (my favorites!) for calculating ROI. Sources: fewer bad hires, more good hires, reducing turnover, and reducing admin costs.
All four miss the point.
Screening only works if you believe you will always have a surplus of perfect candidates. That your labor market doesn't offer any candidates an alternative to you. That you don't need to compete for talent's attention and commitment.
For most jobs, these assumptions are short term pipe dreams. That aside, screening can burn your employment brand.
Why? Test before hire is rude.
Most screening exams burn bridges with potential employees. Like going out on a blind date only to be frisked for weapons, give blood, take a breathalyzer, consent to your credit being inspected, and ordered to complete a personality test before sitting down for coffee. And without your date consenting to any of the same.
What would you think of the date that behaved that way?
Rude. Insensitive. Control freak. Moved too fast.
And you'd tell all your friends about him.
Because there are too many fish in the sea to put up with that kind of unmannered abuse.


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