Talent assessments save your company money by hiring and developing the right people. This video helps you identify the best methods to use to assess your talent.
- Everyone wants to hire, promote, and reward the best people, but nobody likes the idea of doing a talent assessment until they understand how assessments can help the business achieve its goals. Organizations who use talent assessments have a 75% year over year decrease in recruiting costs, they're 24% more likely to have a successor for each key position, and they achieve 2.5 times great profits compared to organizations who don't use talent assessments.
We use assessments to improve the quality of hiring, identify high potential employees, line up successors, and identify skill gaps that need to be addressed. It's common for companies to use assessments in hiring, but only 55% use assessments effectively for internal talent. Assessing internal talent means that managers can put people in roles where they can have the greatest impact on their team's performance. Assessments also help identify how ready each employee is for a new role and how to get them ready.
When employees and new hires have the skills needed they're able to drive business performance. So where do you start? Begin by defining the skills the organization and team needs, then choose the right assessments for your company to measure these skills. All assessments need to look at multiple aspects of an individual to evaluate them well, but there are three main types to consider. The first are skill-based assessments used during the hiring process.
For example, an engineering team will test candidates on a specific technology, while a marketing team ask candidates to develop ideas for a specific campaign. Building ways to test a candidate's skill beyond what they say they can do is an important way to hire the right person. You can also assess leader skills using an external firm. They'll take candidates through a series of tests and interviews to help you know if they'll be successful in the role. For internal employees 360 assessments are used to collect feedback from people who work with an individual.
The skills assess in the 360 process should be those skills required to perform the role effectively. The outcome of the assessment is a development plan created to help that individual improve in the areas required. The second type of assessment is done during the performance management process. Companies use many different approaches to performance management, but the purpose is the same, to identify where the employee has strengths that will impact business results, and what's missing or needs to be improved.
An effective performance management process results in a development plan for each employee that ensures they'll improve the skills critical to success. The third type of assessment is typically part of the succession planning process. This assessment is often done during the talent review. During this process multiple leaders from a variety of teams come together to discuss individuals, assess their skills, determine how ready they are for promotion, and what it will take to get them there.
Individuals are assessed based on their skills, abilities, and desire to move up in the organization. Assessments give you the data you need to make the right hiring, promotion, and development decisions. Hiring and building the right skills in your organization ensures that each person has an impact and will help you achieve your business goals.
- Building a successful talent management strategy
- Identifying talent needs and assessing existing talent
- Recruiting and hiring the right people
- Developing employees to meet talent needs
- Implementing a succession planning process
- Focusing on engagement and retention
- Increasing talent visibility
- Creating a strong HR and business partnership
- Designing a high-performance culture