Ramesh MV, Vice President – Strategy & Growth and Assessments, HirePro, draws on insights from over 4 million data points to highlight the growing role of skills-based assessments in making the right hiring decisions. He also shares the significance of using technology in delivering these assessments, from dealing with falsified resumes and large volumes of applications to accurately gauging candidates on cognitive, communication, functional, and behavioural abilities.
You can also tune in to the audio version on Spotify below
March 2, 2024Sarala VangaPodcastsComments Off on Momentum Episode 2 | Growing importance of assessments and skills-based recruitment
A recent World Economic Forum (WEF) report titled, Putting Skills First: A Framework for Action, attributes the shift to skills-based hiring to the rise of “jobs of tomorrow”. Many sectors are experiencing a demand-supply gap linked to skills caused by the evolving roles of modern workplaces. The WEF report says the world will see a talent shortage in green jobs, AI-based jobs, teaching, healthcare and logistics — these are the jobs of tomorrow. It says a skills-first hiring approach will democratise the job market and boost the talent pool for these jobs of tomorrow.
A McKinsey article titled Taking a skills-based approach to building the future workforce affirms this insight. It says most companies are moving beyond degrees and job titles to focus on skills to help build the future workforce. Both these reports mention one common point. Skill-based assessments broaden the talent pool to include people without access via the traditional approach. Such assessments also ensure a diverse and resilient workforce and aid internal mobility to help bridge talent gaps across the organisation.
Here is an unignorable insight into skills-based hiring from a recent HirePro report:
Candidates chosen after thorough skill evaluations (assessments) outperform other candidates on the job.
A snapshot of findings from the report:
Improvement in performance review scores for candidates chosen via assessments vs. traditional methods across industries:
GCC – 64%
Startups – 46%
IT Services – 73%
BPO (Support) – 87%
These statistics make a strong case for performance enhancement in people chosen through skills-based assessments. Let us decode a few contributing factors to this finding.
1. More accurate role fitment
Skill-based assessments are more accurate, realistic and eliminate wrong hires. The associated assessment insights help with expectation setting while onboarding. Additionally, picking people for specific skills that suit the role results in a better application of skills. It leads to better job satisfaction and improved performance.
2.Ensures a positive work environment
Happy workplaces promote happy employees! When skills become the selection criteria for everyone in a team, there is healthy competition and improved productivity. Also, the team will not have any misfits, disinterested employees, etc., who spoil the team environment.
According to the McKinsey article, “Hiring for skills is five times more predictive of job performance than hiring for education and more than two times more predictive than hiring for work experience.” It further says that employees without college degrees stay with their jobs 34 per cent longer than those with degrees. This retention aspect is an immense boost for organisations. In any team, when constant turnover happens, it can be demotivating and even prove contagious. Skill-based hiring creates a positive environment, aiding enhanced performance.
3. Diversity and innovation
In new-age hiring, organisations rely on tailored AI-powered assessments to implement skills-first hiring. They aid bias removal through data-driven, objective hiring decisions. This approach creates a diverse team where only competencies matter. Many studies have proved that diversity promotes innovation, leading to job satisfaction, increased productivity and profitability. It means happier people with better compensation and incentives, promoting performance.
4. True equal opportunities
Skill-based hiring creates a platform for everyone to perform to their full potential, as degrees and backgrounds do not matter. This approach helps create an equitable workplace where everyone gets respect for their work. Typically, employees treated with equal respect give their best to their job. It aids the creation of a merit-based workplace.
5. Better employee engagement
For people hired via skills-based assessment, the associated insights can help predict their performances. Also, the learning quotient is one of the parameters gauged. Understanding this aspect can help HR set a career growth path at the outset. It helps organisations align their L&D efforts more effectively. Employees work towards achieving their goals with a clear action plan.
A LinkedIn study found that 45 per cent of Indian employees left their jobs due to a lack of L&D opportunities. When finding good talent is tough, planned L&D can be a retention booster, encouraging employees to continue. Also, focused skill development enables seamless internal mobility and redeployment — the need of the hour to bridge talent gaps.
Skill-based evaluations enhance performance in many ways. They also promote equitable and inclusive practices. Overall, they lead to improved productivity and profitability. Clearly, skill-based assessments are the way forward for recruiters.
February 6, 2024Sarala VangaBlogsComments Off on Candidates selected after thorough skill evaluations outperform other candidates on the job. Know why?
Credible research-backed evidence has found a strong positive correlation between employee satisfaction, performance, retention and cultural fit. It seems organisations that emphasise cultural fit during hiring will benefit hugely. Equally, there is a strong likelihood of constant turnover if employees find they do not fit into the company ethos. At a time when attracting and retaining talent is challenging, assessing candidates for cultural fit can save a lot of money, time and effort.
What is cultural fit?
Every company has a unique culture shaped by the company’s core values, beliefs, ethics, attitudes, behaviours, etc. Every organisation expects that the people they hire align with these attributes. An employee who can seamlessly integrate into this culture will be able to perform better. This can only happen when the individual’s personal values, beliefs, ethics, etc., map to the company culture. When this cultural fit is missing, employees can feel frustrated and disinterested. Without a sense of belonging, they may fail to give their best.
Why is it important?
Cultural fit can impact employees’ and organisations’ performance and growth. Insights from Deloitte, published as a video titled Cultural Fit may be Secret to Winning Workforce, suggest embracing cultural fit to counter attrition challenges. The survey found cultural fit the foremost factor in creating a sense of belonging. Many studies have affirmed that people mostly leave their jobs because they find they are misfits. There is a cost associated with their leaving. Hence, there is an onus on recruiters to ensure cultural fit while hiring.
The most effective approach is to streamline the hiring process to assess cultural fit across all stages. Recruiters could start by screening relevant social media of candidates such as LinkedIn to know their professional behaviour traits, associations, etc.
Additionally, here are four tips to ensure candidate-company alignment while hiring.
1. Incorporate and give weightage to employee referrals
Happy employees are an organisation’s best ambassadors. And most employees who have been around for a while will have a good grasp of the company culture. When employees refer candidates, there is already an understanding between the employee and their referral about the company culture. So, the chances of such candidates fitting in are higher. Also, studies show that 45 per cent of referral hires stay longer than four years compared to 25 per cent of job board hires. Also, the cost-per-hire of employee referrals is $1,000 less on average, than other hiring sources. Hence, implementing a strong employee referral program gives multipronged benefits. Also, this approach enhances branding on company rating sites such as Glassdoor.
2. Create customised talent assessments
Recruiters must cooperate with all stakeholders and customise assessments to include comprehensive skill evaluations suiting the role. Some skill assessment options that ensure good cultural fit are psychometric tests, aptitude tests, on-the-job scenario-based tests, etc. These tests provide insights into candidates’ personality traits, approaches, mindsets, etc.. Additionally, recruiters can employ predictive analytics to understand future performance against set company parameters. This strategy can help eliminate mis-hires and save time, effort and cost.
3. Lay emphasis on interviews
To ensure a cultural fit, recruiters must check that interviewers do not work with a standard set of questions. Such an approach will not help in the effective assessment of cultural fit. Instead, the interviewers should interrogate candidates based on insights obtained from the customised assessments. They should also tweak the questions to suit the company’s cultural fit.
Sensitise interviewers to choose questions wisely. For example, open-ended questions can help elicit much information about the cultural fit. Also, if interviews are done via online platforms, various parameters like facial expressions, body language, hand gestures, eye contact, etc., can be analysed further. If organisations outsource interviews, they must ensure the service provider understands their company culture.
4. Internships and collaborative approach
Offering internships can help recruiters observe people in their workplace and give them a good idea about how candidates interact with colleagues, their work ethics, approach, etc. Collaborative interviews with cross-functional interviewers help recruiters reduce bias and make a more informed and balanced decision.
A company’s culture is based on many key parameters that the company identifies with. Therefore, recruiters need to ensure candidate-company alignment for every hire. It has to be an uncompromising criterion. Only then can everyone in a team collaboratively work towards organisational success.
As we enter the new year, the job market is as volatile as ever, subject to stresses and strains from the economy, political moves, and more. In this situation, hiring the right people with an eye on the long term is crucial for the success and growth of any organisation. Traditional hiring processes are often time-consuming, prone to bias, and may not always result in the best talent acquisition. Enter Artificial Intelligence (AI) — a game-changer that is indeed revolutionising the recruitment landscape.
Here are some ways AI can help hiring teams build the right strategies for recruitment and hire the right candidates for organisational success:
Predicting future staffing requirements: AI algorithms are changing the way organisations anticipate their staffing needs. Instead of reacting to immediate openings, AI can predict future requirements by analysing historical data and business trends. Anticipating staffing needs allows companies to proactively plan their hiring strategies, ultimately reducing costs and ensuring a smoother transition for new employees.
Streamlining resume screening and candidate matching: Resume screening is a time-consuming task that AI can effectively optimise. AI algorithms quickly scan and evaluate resumes based on predefined criteria such as keywords, relevant experience, and qualifications. This ensures a more efficient and consistent screening process. Additionally, AI’s ability to match candidates with job requirements is a significant advantage. By comparing candidate skills and qualifications with job descriptions, the likelihood of companies finding the best-fit candidates increases.
Eliminating bias in hiring: Despite the best efforts of business leaders and HR teams, bias in the hiring process is a persistent issue. AI can be a powerful tool in reducing this creeping scourge. When trained with the right input data and criteria, AI evaluates candidates solely based on their qualifications and skills, ensuring a fair assessment of all candidates, regardless of factors like gender, ethnicity, or background. This move not only promotes diversity and inclusion but also broadens the talent pool from which organisations can draw.
Enhancing the interview process: AI-driven interview tools are transforming the way candidates are assessed. Such tools analyse candidate responses, body language and sentiment, providing a more comprehensive evaluation. Furthermore, AI improves interview question recommendations by tailoring questions to specific job roles and candidates’ backgrounds. This not only saves time but also ensures a more effective and efficient interview process.
Online interview proctoring: With the rise of remote work, online interviews have become prevalent. However, ensuring their integrity can be challenging. HirePro offers AI-based online interview proctoring solutions that minimise instances of fraud. These systems use technologies such as facial recognition, plagiarism detection, and behavioural analysis to identify suspicious behaviour during interviews, ensuring the interview process remains secure and trustworthy.
Data-driven decision making: AI has the ability to analyse vast amounts of data to identify trends and assess the success of past hires. This data-driven approach empowers organisations to make more informed hiring decisions and structure their teams for maximum efficiency and productivity.
Improved onboarding: AI can enhance the onboarding experience for new hires. AI-driven onboarding systems personalise the onboarding journey for each employee based on their role and skill-set. This accelerates the integration of new hires and enhances their overall experience, ultimately leading to higher retention rates.
Companies that embrace AI in their hiring processes can gain a competitive advantage in the race to land the best, and best-fit candidates. It is not hyperbole to state that AI is not just a tool — it is arguably fast becoming a necessity to shape the future of work, by ensuring organisations have the best talent to drive success and innovation.
The search for the right employee is like exploring for rare treasure. Resumes with boastful achievements sparkle on the surface, obscuring the promising gems beneath. Here is where pre-employment assessments step in as seasoned trackers with keen eyes and unyielding determination. They venture beneath the façade, assessing skills, uncovering knowledge, and gauging potential with laser-like precision.
By sifting through the pile of possibilities and identifying candidates who possess the true makings of a star, pre-employment assessments curate a pool of candidates that elevates your interview interactions. Conversations become rich in substance, allowing you to delve deeper into the nuances of their skills and experience. The result?
No more squandered interview time and letdown of candidates feigning talent.
Pre-employment assessments ensure every step brings you closer to the talent you seek.
Fuelled by AI, these assessments transform into a dynamic powerhouse, boasting a range of sophisticated features and heightened capabilities.
Features of AI-powered assessments
AI elevates pre-employment assessments with an array of capabilities that redefine the hiring experience.
In the world of coding assessments, pre-built questions in a multitude of languages await. Languages like Python and Java come alive in feature-rich coding environments, allowing candidates to showcase their skills in practical scenarios.
But skills go beyond mere coding prowess. AI assessments tap hidden talent reservoirs through functional assessments. Personality traits? Unveiled. Aptitude? Understood. Technical and domain expertise? Revealed!
Assessment formats come in varied formats, challenging minds and capturing potential in diverse ways. Multiple-choice quizzes assess critical thinking, while essay questions invite insightful responses. Video recordings capture communication and presentation skills, and even open-ended tasks like drawing exercises can shed light on problem-solving approaches.
The icing? Cutting-edge proctoring. No more anxieties about cheating, for AI ensures integrity in assessments. Its advanced anti-cheating technology guarantees fair and reliable results, giving businesses complete peace of mind.
AI’s impact on pre-employment assessments
AI has made a significant impact on pre-employment assessments, and its influence is set to grow even more in the future.
Here are some key ways AI is transforming the hiring process:
Increased efficiency and speed
Automated scoring and analysis: AI can significantly reduce the time it takes to evaluate assessments, freeing up recruiters for more strategic tasks.
Streamlined workflows: AI automates repetitive tasks like scheduling and candidate communication, making the process smoother and more efficient.
Global reach: AI-powered assessments are conducted remotely. This opens up access to a wider pool of talent beyond geographical limitations. However, this vast influx also brings a tidal wave of evaluations, which again, AI can handle efficiently.
Enhanced accuracy and objectivity
Reduced bias: AI can help eliminate unconscious bias by focusing on data-driven insights and objective criteria. This leads to fairer and more inclusive hiring practices.
Deeper insights: AI can go beyond traditional skills and qualifications to assess soft skills like communication, teamwork, and problem-solving. This provides a more complete picture of a candidate’s potential.
Improved candidate experience
Personalisation: AI can personalise assessments (adaptive assessments) to individual candidates, making them more relevant with each click. This leads to higher completion rates and better quality data.
Interactive formats: AI can create gamified or immersive assessment experiences that are more engaging and enjoyable for candidates.
Real-time feedback: AI can provide immediate feedback to candidates throughout the assessment process, helping them identify areas for improvement.
While AI brings many benefits, it is important to be aware of its limitations and potential pitfalls. AI should be used as a tool to inform your decisions, not make them. Human judgement and ethical considerations remain paramount.
AI is poised to revolutionise pre-employment assessment tests, pushing the boundaries of efficiency, accuracy, objectivity and candidate experience. While not devoid of challenges, this technology presents compelling opportunities for the future of recruitment. AI-powered assessments not just help fill a position but contribute to building a team of future-proof talent.
Have you heard about Voice of the Employee (VoE) tools? It was one of Gartner’s three most common AI use cases in HR and recruiting, even in 2019. HR leaders use Voice of the Employee analytics to improve employee engagement, a key focus area to improve productivity and retention. Traditionally, organisations have relied on structured surveys to understand employee feedback and concerns. However, not every employee is comfortable sharing their input this way, even if it is anonymous. AI-powered VoE tools make it all seem so easy and seamless. They leverage Natural Language Processing (NLP) and other AI techniques to detect, analyse and report on employee attitudes and sentiments. They do this by analysing various employee communication channels to understand any discontent, pain points, etc.
Organisations use these insights to tweak their corporate culture, shape leadership strategies and make restructuring decisions. In many ways, AI is helping HR listen to the voices of employees, who may not otherwise openly express their feelings. When voices go unheard, it results in attrition. The VoE tools are just one example of how AI is empowering HR through people analytics.
The other two use cases mentioned by Gartner are talent acquisition and HR virtual assistants. From 2019 to 2024, we have seen how these Gartner insights have only gained more traction. Talent acquisition has adopted AI extensively, with immense benefits for all stakeholders. Affirming this trend is an insight from a recent Society for Human Resource Management (SHRM). It says one in four organisations plan to start using or increase their automation or AI use in recruitment and hiring over the next five years.
AI in modern HR and recruiting: A statistical perspective:
Let us glance at a few more findings from this SHRM study to understand how AI is shaping HR transformation. One finding says nearly one in four organisations use automation/AI to support HR-related activities.
And in which areas does HR implement AI/automation currently?
Recruitment and hiring: 79%
L&D: 41%
Performance management: 38%
Productivity monitoring: 18%
Succession planning: 8%
Promotion decisions: 4%
Clearly, hiring is the HR area where AI is making maximum inroads. However, no aspect of HR is untouched by AI except — the human touch!
Let us explore the role of AI in HR a bit more deeply. It will give us some insights into how AI is helping reshape hiring journeys by transforming assessments and interviews.
AI in hiring — Tools that drive efficiency
AI-powered tools are redefining hiring efficiencies across all stages of hiring. 85% of SHRM survey respondents agreed it saves time and improves efficiency. At the hiring onset, AI is helping recruiters generate better job descriptions that attract the right talent pool. The multitude of resumes that recruiters have to screen to find candidates for successive rounds is a painstaking task. Integrating Applicant Tracking Systems (ATS) into websites can improve sourcing. Resume parsing tools plough through applications to identify suitable ones in a fraction of the time it would take for a human being. They highlight relevant keywords, work experience, and education to improve efficiency and outcomes. Automated scheduling helps eliminate communication lag, a significant pain point for most candidates.
When it comes to interviews, AI can improve efficiency by leaps and bounds. AI-powered video platforms can help conduct live and interactive interviews seamlessly. It also gathers many data points about the candidate based on their facial expressions, body movements, etc. These data points are analysed to provide valuable insights into the personality traits of the candidates. And if you opt for a credible interview platform like HirePro, you are assured of compliance, security and hiring integrity. The HirePro platform has built-in online proctoring features which can detect most forms of cheating that candidates indulge in during online interviews.
The AI efficiency story is depicted statistically below through a few insights from the SHRM study to bring home the point.
52% say they use AI automation for candidate searches.
64% say AI tools automatically filter out unqualified candidates.
38% say AI tools provide % matches or ranking for each applicant, etc.
44% say AI improves the ability to identify top candidates.
AI in assessment — Tailored assessments are the way forward
Assessments are a key part of the hiring process, even though the skills being assessed and the approach have changed considerably over time. Soft skills and personality assessments are now considered as important as technical skills to suit the demands of contemporary job roles. Also, resumes have become passe, and hiring focuses on tailored skill assessments that provide a holistic view of candidates’ competencies to ensure best fits. Insights from a recent HirePro report affirm that 85 per cent of job seekers lie in their resumes, while 56 per cent claim skills they barely know. No wonder recruiters have lost faith in resumes and have changed their tactics!
AI’s data-driven insights help recruiters make better hiring decisions objectively. Some of the added benefits are reduced bias in the hiring process and improved retention of the candidates chosen. 30 per cent of the SHRM survey respondents said AI tools improved their capability to reduce bias in hiring decisions. A recent HirePro report found a 78 per cent bias reduction in hiring when using tailored assessments. That candidate chosen through such assessments outperformed other candidates on the job was the icing on the cake!
AI in HR automation — Improved experiences
Customer experience (CX) is a major factor that drives business decisions these days. In hiring, this translates to candidate experience. Whether an applicant gets hired or not, a good hiring experience leaves a lasting impression. A seamless hiring experience that is fast, convenient, and aids candidates to showcase their skills effectively is a must. And it is AI that is a recruiter’s biggest ally in achieving this goal. AI even elevates onboarding experiences by making them paperless, speeding up the relevant checks, and rendering customised induction programs to make candidates feel welcome.
While hiring is one side of the story, HR has to craft positive employee experiences to ensure retention. This is where the Voice of the Employee tools mentioned earlier are bringing about a silent revolution! Also, according to Gartner insights, HR virtual assistants are now playing a key role in shaping employee engagement. This tool responds to employee queries 24*7, helping identify and measure talent metrics, and streamlining process workflows. These measures lead to improved and transparent performance management, customised L&D propositions, better career paths, and enhanced employee satisfaction and retention. Overall, these AI interventions aid better Employee Value Proposition (EVP) and branding, making the job of recruiters a tad easier.
Is everything rosy?
So, is everything genuinely so hunky dory for recruiters if they adopt AI and HR automation? As with every technological advance, there is cause for concern too. While on the one side, AI helps reduce bias, algorithmic or systemic biases can hinder or mislead selection. Here are a few issues expressed by the SHRM study respondents.
19% have experience of AI accidentally overlooking qualified candidates.
11% have experienced a lack of transparency in the AI decision making process.
3% have experienced AI biases.
The top concern about AI-powered hiring automation is the lack of human touch. Nothing can replace that and human wisdom in making the final decisions. Some privacy concerns also exist about how AI will use confidential information. It is, therefore, crucial to find the right recruitment automation partner who can balance AI with human insight. The SHRM study found that a whopping 92 per cent of organisations using automation or AI to support HR-related activities source some or all of these tools directly from a vendor.
The need of the hour is to ensure that people do not become mere data points generating insights. As the LinkedIn Future of Hiring 2023 report observes, recruiters must learn to make AI work well for them. The report adds that Generative AI will free recruiters from repetitive tasks. Given this, it is for recruiters to use their time wisely on tasks that only humans can do like listening to candidates, generating warmth and goodwill, etc.
And this is where the HirePro philosophy comes in. It has an all-inclusive platform for fearless hiring, the human way! Talk to us to explore our range of customised services that can help you leverage the benefits of AI while ensuring the human touch remains intact.
