The perfect job candidate is getting harder and harder to find. Unemployment rates are at a historical low, and there are now more job openings in the US than there are available workers. This makes it exceptionally challenging for employers to find and attract the right talent for any given job opening. Whether the skills gap is to blame, or if companies are being unrealistically demanding with job requirements, the result is that many companies will need to make some compromises in order to fill their open positions.
More and more companies are beginning to offer financial wellness benefits to their employees – 84% of large- and mid-sized businesses now offer some form of financial wellness perks, a figure that keeps climbing. This isn’t just a random trend. With reports that 53% of employees are stressed about their finances, and student loan debt at astronomical levels, modern day workers are feeling the pressure of their financial situations. Businesses are also starting to recognize that it's in their best interest to provide perks that help to alleviate some of that stress so that employees can do their best work.
Every business, from tiny startup to Fortune 500 company, wants to attract and retain the most talented employees possible. In fact, in a recent survey of our customers, we found that “better quality of hire” was the highest priority for the great majority of employers when it comes to hiring. But as with anything of great value, it often comes at a cost.
For years, employers have struggled with a mismatch between the skills they’re looking for in prospective employees, and the skills that job seekers are bringing to the table. This “skills gap” hasn’t budged and is only exacerbated by relatively low unemployment. According to the Society for Human Resources Management (SHRM), there are now more jobs available (6.7 million) than there are unemployed Americans (6.3 million). This makes finding the perfect employee with the right set of skills even more challenging.
Pre-employment tests are one of the most powerful ways to predict job success and drive better quality of hire. However, candidate assessments are only able to drive these results if the right tests are being administered for your positions.
Companies decide to administer pre-employment tests for a ton of different reasons, from improving quality of hire to reducing employee turnover. The great thing about pre-employment testing is that it’s one of the most predictive factors for job success, especially when compared to other hiring factors. Cognitive aptitude tests, for example, are twice as predictive as job interviews, three times as predictive as work experience, and four times as predictive as education.
The last thing any employer wants to deal with is an employee who routinely fails to follow rules. Disciplinary problems in the workplace can take a number of forms, from absenteeism and tardiness to theft and fraud. These fall under the umbrella of what are called Counterproductive Work Behaviors (CWBs). Anyone who has ever made a bad hire knows the high cost of those hiring mistakes, not just in terms of money but also productivity, morale, and sometimes even your company’s reputation.
Unconscious bias is an unavoidable part of any hiring process, but that doesn’t mean there aren’t ways to reduce its impact on your final hiring decision. Unconscious bias refers to those subconscious attitudes that all people have towards other peopled based on anything from race and gender to wealth and age. It’s important to remember that unconscious bias isn’t necessarily intentional or malicious, but that it can lead to negative hiring outcomes for certain groups, most frequently minorities and women. And there’s a ton of data out there showing how the sum of these biases lead to negative outcomes in the hiring space.
A company’s offer acceptance rate is a fairly simple metric – it essentially provides an indication of how likely a candidate is to accept an employment offer. In a sense, it can be a proxy for the success of your recruitment process. Many companies don’t necessarily track this metric rigorously, mostly because you can often get an intuitive sense of whether or not your organization’s offer acceptance ratio is good or bad. However, if you start to feel that the offer acceptance rate is on the low side, that is the perfect time to start tracking it so that when you do make positive changes to your hiring process, you can quantitatively measure how the offer acceptance rate improves over time.
Paid parental leave is a major perk that a company can offer to attract talented job candidates. The United States is still one of the few countries that has no national mandate for paid parental leave, which puts the responsibility on companies to offer it as a “benefit.”