principals know it. Hiring is hard because both sides are in the dark. Not only is it expensive, time consuming and inherently uncertain, it is hard because the Hiring Manager doesn't know what candidates are the right fit and the candidate doesn't know what companies are the right fit.
But hiring is not hopeless. Like any consequential business decision, it has been exhaustively studied. The companies with the most successful hiring practices are the ones who learn which metrics and processes reliably help to predict performance and quickly identify the metrics and processes that are complete wastes of everybody’s time.
This is the science behind hiring. When trying to figure out who would be the best hire, your key questions must be answered by reliable information. Is the candidate able to do X? How did the candidate perform in Y? Does the candidate really want to do Z? Data analysis can give you more accurate answers, and has demonstrated to mitigate risk.
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To assess a candidate and obtain reliable information, you need to put numbers to value. In the case of recruitment, formulaic assessments will give you battle tested insights on behavioral tendencies, quality of past work, and level of existing skill.
There are thousands of assessments out there, but most can be divided into three categories: behavioral assessments, skills tests and reference checking.
Behavior Assessments measure personality. In an interview you will learn anecdotal details of a candidate’s behavior. Behavioral assessments provide a more comprehension measure for job fit and company fit. What personalities have thrived in your company culture? You need to know this. What personalities perform best as the Administrator or Accountant? Behavior assessments tell you.
Skills Tests measure the level of a specific expertise. Try asking a candidate how good they are at Cost Accounting? All answers will range from OK to the best. There is no confirmation of their rank in the range of people with this skill. Skills tests quantify where their skill sits amongst everyone else in the market, it's quantifiable.
Reference Checking measure the performance of past work. Reference checks should gather more points of view than the three phone numbers candidates have brought to job interviews for the last 50 years. In a phone reference you get the overarching impression by a fan of the candidate; there is conflict of interest. Top reference check assessments gather data from a more encompassing sources to share a 360 degree report of a candidate’s past work.
Notice a theme? Assessments measure. Assessments put analytics behind more points of views than just the interviewer to predict the likelihood of succeeding in any job for any company.
The Aberdeen Group found that assessment data – while crucial across many critical company decisions – was most crucial in the decision of “who to hire.” This is the point where you have a candidate’s basic professional information and have met with him or her for a short period of time. You need more reliable information to make such an important decision. The Aberdeen study found that assessment data was a better indicator of who to hire than it was in deeming who is high potential, who to interview, and who is promoted.
While the evaluation of candidates is both an art and science, there are cold hard facts on every candidate’s behavioral preference, reference checks, and skills test.
Candidate assessments, and in turn who to hire, depend upon measurement. Investing a small amount to measure any of what a candidate is able to do, how a candidate has actually performed, and which tasks a candidate is motivated to perform, will go a long way toward increasing profit per hire.
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An easy reference document covering the whole process from scoping the Job Description for upcoming vacancies, right through to making better job offers than your competitors and sealing the deal, and every step in between. Written by Accounting firm Partners, HR/People Management professionals within the accounting and bookkeeping sector and drawing on established and emerging best practice in selection techniques in Australasia, the UK and US, you can have access to a wealth of practical recruitment and selection knowledge and links to external expertise and reusable templates whenever you need it.
About the Authors
Giles Pearson FCA was a PwC Partner for 18 years before jointly setting up Accountests.
Steve Evans has a whole career dedicated to enabling employers to attract, recruit, develop and retain talented individuals and teams, with particular expertise in candidate testing and assessment before setting up Accountests.
Accountests deliver the world’s only online suite of annually updated and country-specific technical knowledge tests designed by accountants for accountants and bookkeepers. www.au.accountests.com