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New Research: Pre-Hire Assessments

I am excited about a new research report, that we published this week on the assessment market. It is an exciting time to consider assessments and today, companies have better options to make data-driven decisions around talent. One case study that we featured in the report is Proctor and Gamble ( a ModernHire client). I was impressed with the company’s ability to balance science and validity with the candidate experience. This year, P&G announced an initiative to donate a liter of water to every candidate who applies for a job. If you aren’t following P&G or the incredible work of their I/O psychologists and talent team (including Daniele Bologna), I highly recommend it.

Below is the case study from the Future of Pre-Hire Assessments report:

Procter & Gamble (P&G) is an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, founded in 1837 by English-American William Procter and Irish-American James Gamble. It specializes in a wide range of consumer products in six core categories: Beauty; Grooming; Health Care; Fabric & Home Care; Baby & Feminine Care, and Family Care.

As a Fortune 500 company with roughly 95,000 employees, P&G wanted to improve its talent acquisition process in order to reduce the number of steps and expand the use of assessments beyond campus recruiting. It embarked on a journey to improve selection with a more engaging assessment experience and improved reporting and scoring.

The Goals:

Procter & Gamble’s objectives were to deploy a new assessment for sales to reduce time-to-fill while providing an assessment that would enable quality hires. P&G also wanted to provide candidates with a “Day in the Life” experience.

The Strategy:

Through a partnership with Shaker, P&G was able to provide candidates with a Realistic Job Preview that would measure problem-solving, the ability to integrate information, customer service, teamwork, and relationship-building. Candidates were presented with a series of cognitive questions, scenarios, and prioritization sequences.

Beginning in July 2017, P&G began the job analysis that included focus group interviews and questionnaires, a pilot program to validate the assessment, and ongoing monitoring and refinement.

The Results:

P&G was able to achieve the following results:

Expand the funnel of diverse and highly qualified talent by 7%.

Shorten the interview process by ~2.5 months

Cost savings of 80% per assessment

Enhance candidate experience by reducing time needed

The report also features a case study from Comcast and new data and trends to think about in assessments.

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Assessments: You Have Better Options

I have been covering the assessment market for the past 15 years. And to be honest…I have done a less than stellar job. Looking back on research from 2005 makes me want to cringe. We are still talking about the same trends, the same providers, and the same challenges. Companies continue to invest heavily in assessments (some close to $2 million) and assessments continue to frustrate recruiters, hiring managers, and candidates. Not much has changed. Overall, most companies feel that assessments are not short enough, not predictive enough, and not candidate-friendly enough. If you have ever taken an assessment, you get it. It is a test and most people don’t like tests.

But the conundrum that companies face is that assessments actually provide tremendous value when used correctly. In an era when everyone wants less bias and more science, assessments are a proven model. In research we conducted earlier this year, assessments are one of the top three investments for talent acquisition leaders and an investment that 30% of companies believe has the greatest impact on quality of hire. It is a market where most companies want to increase their budgets. Unfortunately, they need better options.

Last week, when most of the talent acquisition community was focused on the acquisition of Glassdoor, HireVue announced its own acquisition of MindX– a game-based assessment provider. It is not HireVue’s first acquisition but it may be the best to date. HireVue is establishing itself as a strong contender in assessments and providing companies with exactly what they need…a better option. This acquisition represents a shift in the assessment market where companies are no longer at the mercy of traditional providers.

We are publishing a major piece of research on assessments this month and some of the trends we are seeing include:

–          Experience vs. Validation: The assessment market is not a startup market. Companies need providers with validated solutions and I/Os on staff. Many times, this commitment to validation comes at the expense of a positive experience. The next generation of assessment providers will provide both a positive experience (shorter assessments that are more candidate-friendly) and trusted data and solutions.

–          Lack of Awareness: Most enterprise companies invest heavily in assessments but most have limited knowledge of the providers that play in this market. The assessment market is not small by any means but the number of providers with brand awareness are few and far between. It creates a feeling of “meh” around assessments. Companies have a hard time leaving a provider that they are not satisfied with when they do not know what options are available.

–          Increased Demand for High-Volume: Most companies are increasing their investment for assessments for high-volume positions to help them narrow the funnel and attract quality hires. This is a shift from the heavy investment in custom assessments for executive level positions of the past.

–          Game-based assessments: Companies want game-based assessments for their most critical roles and see value in a better candidate experience and the ability to predict future performance.

We will publish our latest assessment research this month. We have interviewed many talent acquisition leaders this year and feel confident that we will do a better job addressing the real challenges and opportunities in this market.