“I started using the right hiring tools and have improved my bottom line.” President, Engineering Company
Companies everywhere must focus on strategies to improve team performance and revive their bottom line. Today, more than ever, there are many qualified job candidates seeking employment. But one bad hire can hurt a company’s retention, revenues, and results.
It starts with hiring and selecting the right employees for the right job … aka job fit, the first time. The challenge is too many companies spend more time evaluating equipment and systems than focusing on using the right tools and hiring practices to find and attract the right people who will use these systems.
“It is not experience that counts, or college degrees or other accepted factors – success hinges on fit with the job.” (Source: Harvard Business Review, Vol. 58, No. 5)
Today, more than ever, collecting objective data by using the right assessments for hiring and selecting the right employees will determine your company’s success and revenues.
Cost of Poor Hiring Practices
As a leader, you know your turnover rate. In fact, you may be proud that it is below industry standards. Yet, the truth is, you do not know how the actual costs of your current hiring practices impact your bottom line. (Think of the client you just lost and the intangible costs!)
Now is a great opportunity to calculate the cost of a bad hire, and how much it costs you to promote the wrong person, or lose a talented team member. When you do this, you will realize you’re losing money each and every quarter, even though your bottom line may be acceptable … not great … just OK!
Not All Assessments Are Created Equal
Not all assessments are designed for hiring and selection purposes. For example, AI‑powered personality quizzes are not validated for pre‑employment or promotion use. Using assessments that have not been statistically validated for pre-employment and selection purposes can get you in legal trouble, and have you rely on subjective, not objective data. Also, the wrong assessment will cause you to hire the wrong person for the right job OR hire the right person for the wrong job.
Why? People are like icebergs: they only let you see what they want you to see and what you don’t see under the surface is often far more significant and costly.
Using the wrong assessment or no assessment at all, allows candidates to tell you what you want to hear not what you need to hear. (Note: most hiring managers miss lies, misinterpret facts, and fail to listen to what a job candidate is actually saying. Deep diving using the Rule of 3 can discern the truth and overcome these issues, if you are listening.)
For example, candidates will…
- Talk about the skills and talents they don’t use appropriately. (Or, haven’t used ever.)
- Share achievements they didn’t accomplish. (Team work v. individual contributions.)
- Win the job offer and not be the same person that shows up to work. (Or, ghosts you!)
These avoidable hiring mistakes will hinder your ability to revive your bottom line, and improve your retention and results.
Use the Right Assessment to Ensure Job Fit
You would not use a screwdriver to put a nail in the wall. The right tool is a hammer. Using the right assessment tools are no different.
There are over 3,000 assessments in the market today. Most do not meet the Department of Labor’s 13 Guidelines for Using Pre-Employment and Selection Assessments (See: Testing and Assessment: An Employer’s Guide to Good Practices, Department of Labor).
How do you choose the right assessment to determine job fit and core values?
There are two options:
- Read the DOL’s 13 Guidelines (citation noted two paragraphs above) and review the technical manual for each assessment. A qualified assessment will have a technical manual showing statistically that it meets the validity and reliability guidelines and all other requirements for pre-employment and selection purposes. The key is to ask for the technical manual and refuse to use an assessment for pre-employment and selection purposes without one.
- Talk with an assessment expert to guide you through the process.
When you take the time to select the right assessments and use them as directed, they work and will positively revive your bottom line.
*Source: “Hire Amazing Employees: How to Increase Retention, Revenues, and Results!”
©Jeannette Seibly, 2015-2026
Jeannette Seibly is a Talent Advisor, Leadership Results Coach, and Business Author with over 33 years of experience guiding people to empower themselves, transforming workplaces into places that work, and shaping leaders who truly lead.
Do you have questions about how to use qualified assessments to get the best results? Contact me to understand the power of objective data.