The business benefits of using assessments

Although IO Professionals are well-versed in the scientific basis of psychometric assessments, especially in terms of prediction of fit-to-role, business end-users may not always be as familiar with the true benefits of assessment.

While it is important for IO Professionals to popularise scientific findings about predictive validity of assessments, it is sometimes equally important for us to be advocates of the business benefits of using assessments in the workplace.

Recently, our best-of-breed assessment product partner, cut-e (an Aon company) has released several research results that shed light on this important question.

  • Identification of high potential candidates: HiPo candidates were 40% more likely to be identified using online assessments.
  • Assessments affect the bottom line: A technology company using online assessments experienced a 36% increase in revenue and a 42% increase in profit because of better selection practices
  • Selecting better sales staff using assessments: Using online assessments helped increase sales in the same organisation by 18%
  • Graduate selection using assessments: Online assessments used for graduate programme selection resulted in a savings of 260,000 euro in a technology company.
  • Apprenticeships and learnerships: A mobile telecoms company managed to increase apprenticeship completion from 88% to 95% by using online assessments for selection of candidates.
  • Time-to-hire efficiency: A electronics retail company reduced their recruitment time per candidate by an average of 5 hours, a total savings that translated into 390,000 euros!
  • Less reliance on expensive recruiters: Because of more accurate pre-screening of candidates using assessments, the same company was able to reduce their reliance on recruitment agencies, a savings per year of 975,000 euros.
  • Reduction of bad hiring decisions: Ultimately, using assessments means that managers and talent decision-makers make less mistakes in their hiring decisions. The retail company mentioned above was able to save around 4 Million euros as a result.
  • Better engagement and retention of talent: A company in the home security industry experienced better retention and engagement of staff because assessments helped them identify potential hires who would leave within the first 4 months of employment.

The above examples are typical of the real-world benefits companies accrue by using scientifically robust, well developed assessment products.

Over and above the psychometric power of such tools, it behoves IO Professionals to have business metrics such as these at their fingertips as well, especially when faced with sceptical end-users.

For more information on how we can help you make better talent decisions with assessment products such as the cut-e suite, drop us a line at