Jobs are becoming more skill-based and less redundant as the recruitment process becomes more automated. Moreover, recruiters have the challenge of hiring exceptional candidates on record budgets due to increased competition among organizations to hire the finest staff while retaining profitability.
When you analyze your hiring decisions and spending indicators, you generate a cost of new hire estimate that will help you make better judgments in the future. In addition, these decisions lead to increased efficiency and more precise budgeting. These advantages enable you to boost corporate efficiency and improve the bottom line.
Two recruitment process indicators that assist firms measure their total spending and effort connected with filling a vacancy are cost per hire and time to hire. And in this blog, we will throw some light on the importance of psychometric tests like DISC assessments in reducing both costs per hire and time to hire.
Cost per Hire: Meaning
The average amount of money spent on each new hire brought into the business is the cost per hire. While the premise is straightforward, comprehending the subtleties necessitates a deeper investigation. Not all of the costs of hiring become obvious until you break down the time and resources required to post a job, evaluate applications, and finally, onboard the position’s receiver.
When conducting your calculations, it’s critical not to ignore any future expenditures. Missed figures can lead to missed opportunities to improve in those areas, and you’ll end up with an erroneous cost per hire estimate.
Time to Hire: Meaning
One of the essential recruitment metrics, time to hire, measures the amount of time a candidate spends in your database. The time between candidate sourcing and offer letter acceptance is known as the time to hire. This metric provides actionable insights to improve the recruitment process by eliminating bottlenecks for a better candidate and recruitment experience.
Recruiters must understand that time to hire has a negative impact on the cost of hiring. It is thought that speeding up recruitment leads to a large reduction in hiring costs. Delays in obtaining talents negatively affect corporate performance in high personnel turnover or strong growth in industries.
Fortunately, psychometric assessments prove to be the perfect solution to reduce the time it takes to hire someone and the cost involved without sacrificing the quality of hire.
Ways Assessments Help Reduce Cost per Hire
Let’s first understand what a psychometric assessment means. It assesses applicants’ abilities and personality traits to determine their fit for a specific job. HR managers or hiring experts conduct a psychometric personality evaluation after screening, interviewing, and conducting background checks, and a candidate is chosen mostly based on their qualifications. However, recruiters can also use these tests to learn more about a candidate’s abilities, personality, and aptitude, which is important when making a final hiring choice.
Recruiters can use a psychometric test to assess a candidate’s attitude, behavior patterns, mental reasoning, and personality type. It could mean the difference between finding a great employee and finding someone who doesn’t suit the company’s culture when used as part of a full hiring process.
Here’s how these assessments can help recruiters:
- Automate evaluation processes
Automation is a great method to cut down on hiring time, streamline tasks, and operate more efficiently to save money. Time is money, and organizations can save money by speeding up the hiring process using pre-employment assessments. In addition, you can reduce worker hours by automating the laborious, repetitive aspects of the evaluation process, saving you money and improving your recruiting operations.
- Allow remote hiring
Remote hiring is becoming increasingly popular, especially in the wake of the COVID-19 pandemic, making face-to-face interviews nearly unfeasible for most businesses. Psychometric assessments can be conducted online, minimizing the time it takes to hire, reducing the danger of unconscious hiring biases, making scheduling easier, and lowering hiring costs.
- Create a pool of talented candidates
Building a talent pool of skilled applicants will help you save money on recruitment. This way, if your firm has a hiring requirement, you’ll always have a pool of pre-screened individuals to choose from. In addition, using these assessments help you in screening candidates without assessing each candidate individually.
- Provide recruitment analytics and data-driven insights
Recruitment analytics can revolutionize companies trying to make better, more cost-effective hiring decisions. The results generated from psychometric assessment tests are data-intensive, research-based, being much more reliable. Moreover, using recruitment analytics can improve the quality of hires, streamline operations, and reduce recruiting costs.
Number crunching and data analysis can be a company’s worst nightmare. Having too high or too low data makes it difficult for an organization to keep track. The truth is that understanding your cost-per-hire gives you far more than numbers. As a result, you must consider partnering with reputable solution providers such as Discover Assessments, the world’s first gamified psychometric assessment company. You can detect behaviors and tendencies among candidates and build evaluation activities to further investigate them using the results of our psychometric test.
Contact us to utilize Our assessments can assist you in identifying the best talent for your organization’s needs when determining who to hire.