This is a story about how our pre-employment testing software — Toggl Hire — helps us save time and money.
Staff turnover is one of the biggest financial waste in many companies, and a lot of the time, it comes down to a poor hiring decision. Pre-employment testing can help make hard hiring decisions easier, saving you time and money in the process.
Some studies (such as CAP) suggest that the total cost of losing an employee can range from tens of thousands of dollars up to 213% of annual salary for highly educated executive positions. For example, the cost to replace a $100k CEO is $213,000.
There are several steps that can be taken to keep strong employees engaged and happy at the company. But in order to lower turnover rates, it’s also important for businesses to ensure that they are hiring the best candidates for the job, individuals who have the needed skill set and will be more likely to stay and grow with the company for an extended period.
How can you know that the candidates applying have the skills you need in the position?
1. Test before you buy
Pre-employment skills testing is gaining popularity fast as it increases accuracy, reduces costs, and speeds up time to hire. And recent research across industries also shows that these tests are good predictors of performance.
We have been using “test-first” approach for years now and we are not looking back, because screening actual job-related skills before reviewing resumes or conducting interviews enables our managers to make rational decisions that are based on objective variables. It also helps fight unconscious bias, and promote diversity in the workplace.
2. Never waste time reading resumes again
Before you roll your eyes and proclaim “but resumes are the only way!”, hear us out.
Reading resumes as the first step in the hiring process is a colossal waste of time. Yes, it is good to get an idea of a candidate’s background and experience, but it is impossible to fully vet all applicants this way as the initial stage, since you might be getting hundreds at a time.
Using a skills test first allows you to quickly identify out the most qualified and knowledgeable candidates, giving your hiring direction. Then, you can get additional, contextual information on this shortlist of candidates from their resumes if you so wish. Us personally, we don’t even look at resumes at all, and to be honest, we don’t miss them. But everyone is different, so do what feels righ for you!
3. Remove the hidden costs of screening
Screening résumés is a long and tedious process. Many expensive mistakes can be made here in wasting too much time for wrong candidates.
Here’s a breakdown of the savings from using Toggl Hire for filling just one position, if average staff time is worth $40/hr to your company.
More reasons to adopt pre-employment testing:
- Lower barrier to applying
- Engages greater number of candidates
- Gives a fair shot to all candidates
Toggl has had more than 40,000 applicants over the last years and out of them we have hired 50+ talented people —with only one person overseeing the hiring process.
Ready to reinvent your hiring? Try Toggl Hire for free.