Employers Shift to Skills Tests Reducing Mis-hires by 67%

By the time Generation Alpha enters the workforce, the traditional résumé and cover letter may become obsolete. Employers are increasingly turning to personality and skills tests as a more efficient and effective way to assess job candidates. This shift is driven by the need to reduce time-to-hire, minimize mis-hires, and evaluate soft skills as artificial intelligence takes over more routine tasks.

According to a recent report, approximately 76% of employers are already utilizing some form of skills test in their hiring processes. These tests, which range from the Hogan Assessments exam to the Myers-Briggs personality test, are proving to be more predictive of on-the-job success compared to traditional résumés. Employers report that 71% agree that testing is more effective in predicting job performance, and 65% find that workers hired through skills tests tend to stay in their roles longer.

Major companies like Olive Garden and FedEx are among those leading the way in adopting these pre-employment tests. Olive Garden uses a personality test distributed by Paradox.ai, which features a series of slides with a blue alien character named Ash. FedEx has also implemented a similar test, which has garnered attention for its unconventional approach. Despite some criticism, these tests are seen as valuable tools for assessing candidates' cognitive abilities, technical skills, and soft skills.

The benefits of using skills tests are multifold. Employers report that these tests help reduce the number of mis-hires by two-thirds and cut down the overall time-to-hire by roughly three-fifths. Additionally, the tests provide a more objective way to rank candidates based on their scores, making the hiring process more efficient and accurate.

As AI continues to automate more tasks, the importance of soft skills in the workplace is increasing. Employers are recognizing the value of assessing these skills through pre-employment tests. About 69% of employers are using soft skills tests this year, compared to 50% using cognitive ability quizzes and 35% using self-report exams. This trend is likely to continue as companies seek to build teams that are not only technically proficient but also emotionally intelligent and adaptable.

While some applicants have expressed skepticism about the effectiveness of these tests, employers remain optimistic. Ryne Sherman, chief science officer at Hogan Assessments, notes that every bit of extra information gained from these tests can have a significant impact on overall productivity. As the workforce evolves, it is clear that personality and skills tests will play an increasingly important role in the hiring process, potentially rendering the traditional résumé a relic of the past.