Years ago when company executives talked about managing the employee lifecycle the discussions were reserved for large, Fortune 500 companies. They had the resources and HR departments to administer the programs and do the assessments, training, and development necessary to make the program successful. Small to mid-size companies tried to emulate their larger counterparts but the costs were too high, and the effort usually failed and was set aside.

Today things have changed.  Small to mid-size companies can implement cost effective programs that enable them to select, on-board, train, develop, and retain their employees.  In the long run, these programs save money and improve corporate performance. How is this possible? It all starts with a robust, scientifically validated assessment.

Training the Individual vs The Masses

When you think of a training program your mind probably goes to a room full of employees, someone at the front of the room, or on Zoom talking, and people sitting in their chairs taking notes. The topic was strategically picked by someone in the organization who had some positive experience with the speaker and thought the topic would be beneficial.  This was the old way of doing things before the introduction of people analytics and assessments. It is an example of Training the Masses. The problem is, even if the topic and speaker are great, without using the results of employee assessments to identify areas of need, you have no idea how many in the group need training in this topic.

A few years ago I was asked to speak to a group of 20 salespeople at a company two-day quarterly meeting.  I had done several presentations at industry trade events and the sales manager thought I should share a few of those topics with all 20 salespeople.  When I asked which topics would be most valuable to the largest segment of the group, the manager could not answer the question.  We then decided it would be more valuable, and a better use of company resources, to give all 20 salespeople a professional assessment so we could chart the strengths of each individual and, as importantly, identify areas where development was needed.  Once complete, we had a road map to identify the topics that would have the greatest impact on the team and agreed to address those in future group meetings.  We also were able to identify individuals that needed training in specific areas and addressed those needs on an individual basis.  Tracking this program over a two year period we were able to see a visible improvement in morale as salespeople appreciated the effort the company was putting into their training, a 100% retention rate over the period, and 75% of the outside salespeople improved sales and profit performance year over year in both years the program was in place.  The program also enabled management to stay engaged more often and provided measurable goals for self-improvement in addition to performance improvement.  Communication improved dramatically as everyone recognized their role and how it contributed to the success of the team.

This is only one example of the power and benefits of assessments.  When used properly, assessments contribute to the success of every stage of the employee lifecycle. 

The Five Stages of the Employee Lifecycle  

• Selection
• On-boarding
• Training
• Development
• Separation (Retirement or other) 

In a 2017 CareerBuilder survey, 74% of employers say they have hired the wrong person for a position.  The U.S. Department of Labor estimates the average cost of hiring a bad employee is at least 30% of the individual’s first year earnings.  Other HR agencies argue the cost is greater than 30%.  The same CareerBuilder survey found that the 74% of companies who admit they’ve hired the wrong person for a position lost an average of $14,900 for each bad hire.  Any way you look at it, an expensive mistake.  The best way to increase your chances of success when hiring is to use a rigorous selection process that includes a scientifically validated professional assessment.

Most companies employ a combination of tools when hiring; the resume, reference checks, and interviews are the most common.  If we explore the information gathered in each of these tools it is important to note what is not included.

• The resume is usually the first look you get at a candidate.  This is, hopefully, an accurate list of the candidate’s past and maybe current experience.  It is a somewhat reliable tool to see how long a candidate stayed at past employers and any career progression. 
• Reference checking is another tool we can use to assess how a candidate has done in the past and maybe explore how well they work with others.  We must recognize however the candidates will only list people who they believe will give them positive reviews.  We must also recognize that past employers may be reluctant to give out negative information on a candidate.  Once again, we are dealing with the past.
• Interviews are the first step to getting a better feel of the current state of the candidate.  It is your opportunity to delve deeper into the candidate’s past and how they react to the questions asked and handle themselves in a professional environment.  

If you stop here, you have a fair evaluation of the candidate’s past and current state.  Even if you have several people interview the candidate, which you should, it still doesn’t change the fact that you have limited information about how this employee will perform in the job, with the team, and in the company.  This information can only be obtained using a scientifically validated assessment.

• Adding an assessment to the selection process helps you predict:
  • How good a fit the candidate is for the job?
  • What training the candidate might need to perform well in this position?
  • If the candidate is a team player?
  • The candidate’s ability to fit your company culture.
  • The candidate’s potential for advancement.
  • If the candidate can develop into a company leader?
  • If the candidate has a positive attitude?

Now you have a much more complete picture of the candidate.  And, the results of the assessment, unlike the resume and references, are not sugar coated.  It is an unbiased predictor of how the candidate can be expected to perform in the future.

An additional benefit of using assessments during the selection process is, should you elect to hire a candidate that has been assessed, the assessment results can be used to identify necessary components of the on-boarding process as well as training and development programs.  All can be individualized to meet the employee’s needs and give them the best chance for success in the position they have been hired into as well as future positions in the company.

Assessments are powerful tools and are an essential component to managing the employee lifecycle.  But like all tools, you need to put in the time to learn how to use them properly to unlock their full potential.  Assessments are available for entry level employees all the way to the executive suite.  Implementing an assessment program as part of your selection and employee development plans will help employee performance, employee satisfaction and retention, and contribute significantly to the success of the organization.  Employed throughout the employee lifecycle, scientifically validated professional assessments save time and money as well as helping to eliminate the costs of a bad hire. 

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