Employees are the most important stakeholders of any organization as it is because of them that the organization can function and grow.
And thus, hiring processes are one of the most important activities that take place within organizations. This process takes up a lot of time and effort of the company. It is a long, stressful yet indispensable process of an organization.
Hiring processes usually take place in multiple rounds, candidates successively move to the next rounds after qualifying from the previous one until the last few remaining candidates are hired by the corporate.
Hiring processes usually take place in the following manner:
- Aptitude Tests
- Technical Round (This round tests the candidate’s knowledge of the respective field)
- Group Discussion
- Technical Interview
- HR interview
In the past few years, there has been a huge change in office environments and expectations of employees from their employees and expectations of employers from employees. The present way in which corporates are hiring are not effective and may hamper the organization’s growth.
In this blog, we will discuss three ways in which corporates can simplify their hiring process and help them hire better.
Human psychology has always been a subject of interest for researchers, and many scientists and researchers have tried to come up with various theories about human psychology and is colloquially referred to as the ‘human nature’. They have tried to define various frameworks to define human psychology like Six Thinking Hats, Big 5 Personalities, etc.
Psychometric tests have been derived from such models and theories of human psychology.
A psychometric test is a test designed to show someone’s personality, mental ability, opinions, etc.
During the hiring process, it will be advantageous for recruiters to know the nature of the person in addition to their knowledge of the field.
According to a study by Career Builder, wrong hiring. i.e, hiring the wrong candidate can hamper the organization’s growth. Wrong hiring may cost the organization around US$7000 to US$10,000 for a junior-level to middle-level position or a managerial position.
To prevent this, it is essential for organizations to standardize their hiring process with the help of a psychometric test. Psychometric tests conducted for hiring processes typically evaluate candidates on the following aspects:
- Decision-Making Ability
- Learning new things
- Communication Skill
- Team Skill (Interpersonal Skills)
- Analytical Ability
The test is typically a Multiple Choice Questions (MCQs) based objective test in which the candidate needs to select one option from the available set of 4 to 5 options for each question.
The result analysis is done based on the questions and topics to come up with a mathematical scoring sheet. The score range is used to analyze individual in terms of working style, interpersonal skills, personality (introvert, extrovert) quotient, etc.
Why should corporates prefer Psychometric Tests over Aptitude Tests?
Aptitude Tests have been a popular tool in the recent past to evaluate candidates for entrance exams and hiring assessments alike.
An aptitude test can provide you with an insight into the ability of the candidate in terms of analytical ability, ability to comprehend information, accuracy associated with interpreting information, mathematical or number-crunching ability, and so on.
However, Aptitude tests have limitations. They fail in identifying the various personality or behavioral traits of the candidate.
Psychometric Tests, on the other hand, can help to rectify the shortcomings of the aptitude test. These tests can help you to identify the personality traits of the candidate along with their liking and preferences in terms of working in a team or a client-facing role etc.
Martin Luther King rightly said that “A genuine leader is not a searcher of consensus, but a molder of consensus”.
Corporates these days are looking for employees who are not only experts in their field but also have leadership qualities to lead their team to success and help the organization achieve its goals and grow.
In an organization, leadership is an inter-personal process between the team leaders and team members. It is the relationship between them that affects how efficiently they work together.
Leadership Assessment is a procedure for distinguishing and depicting a person’s unique attributes as they relate to Leading, Managing, and Directing others and how such characteristics fit into a given position’s requirements.
Why is Leadership Assessment important?
The corporate sector is growing. Corporates are growing by the day, spreading their reach across borders and continents. They are growing by market share and in terms of employee strength.
Take the fortune 500 companies, for example, their combined revenue of $ 12.8 trillion amounts to a staggering two-thirds of the United States’ GDP, the world’s biggest economy.
Apart from these fortune 500 companies, there are new companies and start-ups that are mushrooming around the globe. Businesses are also growing around the world. The entrepreneurial spirit is on the rise globally.
It is evident that for corporates to grow strong and stable leadership is needed at its helm.
The relation between corporate governance and leadership is often ignored because, in times of crises, pre-laid corporate guidelines and strategies are adopted. The kind of leadership being provided to the corporate has a huge effect on the governance principles and policies the corporate adopts.
Without inspiring leadership and Good Governance at all dimensions in private, public and civic organizations, it is arguably and virtually impossible to achieve and to sustain effective administration, to achieve goals, to sustain quality and deliver first-rate services.
The evolving complexities and necessities emerging from the steady change in the society, combined with the consistent push for more elevated amounts of efficiency, require viable and moral leadership.
Great governance and inspiring moral leadership are the fundamental necessities for a corporate to be viewed as successful.
Hence, it is essential that while hiring candidates should be screened for leadership abilities as well.
The goal of this assessment is to enable organizations to boost their leadership: finding the correct leaders and putting them in positions where they’ll succeed and drive business.
The benefit of assessing candidates for leadership is that they can thus be allotted the right positions for the complete utilization of their potential.
It is because of this process that the most deserving and best candidates are hired. Competent leaders are the key to an organization’s growth and success.
Workplaces are changing. Employees are not happy with the work they have to do. Generational influences and the booming economy are also putting stress on corporates and making it hard for them to hold on to talented employees.
According to some reports, as many as 83% of employees are unhappy and want to leave their jobs.
To tackle this problem, finding the right leaders is the solution. Employees are likely to stay back of their leaders to specify their job duties, roles and how they contribute to the success of the organization.
Using AI to simplify Hiring Assessments
Artificial intelligence and machine learning have taken the world by a storm. AI has penetrated deeply into our lives, even when we don’t realize it. From smart virtual assistants to food delivery apps, to social media apps and search engines, AI is being used everywhere to enhance and personalize user experience.
Artificial Intelligence and Machine Learning have applications across industries and sectors. AI is being used in healthcare to predict various cancers and in the agriculture sector to predict harvest output and climatic conditions.
AI is also being used to conduct assessments in a simplified and hassle-free way. AI brings precision to the hiring process. Thanks to the various algorithms and technologically advanced computers of today, AI can analyze loads of data. This helps in analyzing a large pool of candidates and making better decisions.
Automating the hiring process with AI also brings efficiency. This helps recruiters assess candidates at a much earlier stage and conduct consistent hiring assessments, without bias.
Using AI recruiters can also conduct video interviews of candidates. This will help both, the organization and candidates by conducting interviews on short notice and saving time. Artificial Intelligence and Machine Learning can analyze the video and also detect if the candidate has used any unfair means while appearing for the interview.
How corporates are overlooking resumes with AI
One of the major problems with resumes is that it does not effectively convey the personality of the candidate to recruiters, which as discussed above is one of the essential parameters of hiring today.
Another problem with resumes is that often candidates lie on them, to make them look more impressive and thus it becomes hard for recruiters to distinguish between a genuine resume and a resume which is not entirely true.
A survey from career builder found that 56% of hiring managers have found candidates blatantly lying on resumes about their skills and abilities, at times very liberally.
Another issue with resumes is that they can cause unintentional bias among recruiters. Even the fairest and open-minded recruiters are prone to bias by factors like sex, gender, age, and college attended.
AI-powered hiring assessments like cognitive assessments can help recruiters understand whether candidates will be able to learn and perform duties expected of them for the job and be successful.
These tests will thus help remove the bias from the hiring process and make it a fair process. Additionally, these tests will also help recruiters save a lot of time.
52% of hiring managers feel that the hardest part of recruiting is identifying the right candidate (or candidates) from a large pool of candidates.
Machine learning can also be used to screen resumes and shortlist the ones which are suitable for the job. Manually screening resumes takes up a lot of time and becomes stressful when there are a lot of candidates. Machine learning can do this task within minutes.
Artificial Intelligence and Machine Learning can also be used to access and scrutinize the HR data and standardize the hiring process in terms of candidate’s knowledge, experience, skills and requirements for the job.
This will result in happier and productive employees, which in turn will result in the growth of the organization and increase in its revenue. This will also help in preventing employees from switching over to other organizations for better prospects or better work culture.
To sum it up...
Work cultures and wok environments around the world are changing, and so are expectations of employees from their employers. The present way in which corporates hire employees lacks in identifying the personality of the candidate. This can not only hamper the growth of the employee, but also the growth of the organization.
Hence it is essential that corporates incorporate psychometric assessments in their hiring process to understand the employee and find a suitable position for them. Similarly, leadership assessments are key to hiring the right candidates who will lead their teams to success and contribute to the organization’s growth.
Lastly, using AI to automate the hiring process will help recruiters save a lot of time and efforts. AI will also help bring precision and efficiency to the process.
One of the major advantages of using AI for hiring will be removing the bias by factors like sex, gender, university attended that may come with humans. AI-assisted hiring will ensure that the hiring process is fair and free of bias. Machine Learning will also help in shortlisting qualified candidates from a large pool of applicants by analyzing their resumes.
These three ways will ensure that your company hires the right employees who are happy with their jobs, resulting in your organization’s growth and increase in revenue.