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It would be difficult to find a business that does not use Microsoft Office®. According to a National Skills Coalition study, 92% of jobs now require computer skills, so it’s not surprising that a global survey of job postings shows that almost all require MS Office skills.

This is particularly true for Excel. While all MS Office applications are widely used, Excel is easily the most popular. Over 99.99% of businesses worldwide use Excel, which means about 750,000 to 1.2 billion users in over 731,000 U.S. companies.

People entering the workforce are told that Excel skills can qualify them for more jobs and careers, even without a college degree. They also learn that having Excel skills can increase their earning power by around 12% if they demonstrate good proficiency.

Why Organizations Need Employees with MS Excel Skills

Excel skills are in demand because employees throughout an organization–from clerical staff to senior managers—must compile, manage, and store information as part of their job. Using spreadsheets is the easiest way to accomplish these tasks. Spreadsheets are also the easiest way to present data so managers and external stakeholders can easily understand it.

Since hiring has become digital, business leaders often ask how to tell if someone is truly an expert in Excel so they can identify candidates who know how to:

  • Create and format spreadsheets
  • Sort, organize, and classify data
  • Apply popular formulas and functions
  • Enter data accurately
  • Use advanced features like pivot tables macros
  • Prepare reports, analyses, financial statements, and sales forecasts

We tell them the best way to ensure applicants have the required abilities is to use Excel skills tests to screen and hire employees. When they review Excel assessment test results, they can verify that candidates have strong computer skills and data management experience.

What is an MS Excel Skills Assessment?

HR professionals often ask, What is an Excel test for employment?” We tell them a basic Excel assessment test enables recruiters to evaluate candidates’ ability to perform basic Excel functions such as creating reports, using formulas, performing math calculations, and formatting cells (e.g., changing a font, modifying cell and border alignment, and converting a decimal to a percent).

HR teams also use Excel skills tests to assess applicants’ knowledge of advanced features, such as pivot tables, and apply statistical modeling functions to perform regression analyses and create histograms.

How to Assess Technical Skills Remotely

Once employers understand how to use Excel skills tests to evaluate candidates’ abilities, their next question is. “How do skill assessments work in remote hiring?”Since many employees who work offsite need Excel skills, business leaders want to know how Excel assessment tests can help them verify candidates have basic and advanced Excel skills.

We cite the following as examples of how they can use Excel skills tests to identify qualified candidates.

  • Use Pre-Prepared Assessments: Most leading assessment solutions include access to a library of job- and subject-based skills tests. They should have some assessments for basic Excel skills and others for advanced Excel skills, such as candidates’ ability to use important functions like INDEX, MATCH, and VBA LOOKUPS.
  • Include Simulations: Many business leaders see simulations as the best Excel assessment tests because they evaluate candidates’ ability to perform job-related tasks such as setting up macros, creating pivot tables, and financial modeling.
  • Build Customized Excel Assessment Tests: Off-the-shelf Excel skills tests are not always effective because jobs have diverse requirements. As a result, top assessment solutions allow for building customized assessments by modifying a pre-prepared Excel assessment test to add or delete questions or creating an assessment from scratch by selecting questions from multiple skills tests.

For example, if you were hiring a manufacturing operations manager, you could create an assessment using questions from the eSkill Advanced MS Excel Skills, MS Excel Functions, and GMP Quality Manager and include an eSkill Excel Simulation.

When we show HR teams how they can customize Excel skills tests to perfectly match their job roles, they are eager to know more. We get many questions about the types of Excel skills that are required for specific positions. For example, a common question we hear is, “What are the top Excel skills needed for a data analyst?” Another common question asks how to assess a candidate’s skills for engineering positions.

A data analyst needs to be detail-oriented, have advanced Excel skills, and have excellent problem-solving skills. So, you could use an Excel assessment test that measures advanced skills as a foundation and add questions from the eSkill Business Systems Analyst, Attention to Detail, and Management Skills assessments.

Candidates applying for engineering positions must demonstrate that they understand advanced Excel formulas and functions and have the technical aptitude required. So, you could use an Excel skills test that measures advanced skills as a foundation and add questions from the eSkill GMP (Good Manufacturing Practices), Operations Management, and Mechanical Aptitude assessments.

What Are the Problems with Employment Tests for Excel?

In today’s dynamic marketplace, companies need top talent to compete effectively, so they use various tools and techniques to identify the best candidates for each job.  Using assessments such as Excel skills tests is one of their primary tools.

HR leaders say skills tests are integral to their hiring process because they can quickly evaluate candidates’ skills and experience. However, some industry experts have their doubts and cite the following potential disadvantages.

  • Limited Scope and Evaluation: HR industry gurus claim it is not always possible to evaluate an applicant’s suitability using Excel skills assessment tests because their view of candidates is one-dimensional. Skills are important, but a comprehensive evaluation should consider a candidate’s background, including work history, education, and career accomplishments.

They are correct. If employers use only skills assessments to make hiring decisions, they risk hiring candidates who have the right skills and experience but are not a good fit for the job. They might also overlook candidates with valuable skills and experiences that the assessment does not measure. Top assessment solutions address this problem by allowing HR professionals to customize assessments.

  • Potential for Bias: Many HR professionals have heard that using Excel skills assessment tests can introduce bias into their hiring and lead to discrimination. Their concern is valid, and a Bright Talk survey shows that 79% of HR professionals agree that unconscious bias affects recruitment and succession planning decisions.

On the contrary, assessments help organizations minimize unconscious bias by focusing on candidates’ skills and abilities and reducing the emphasis on resumes, applications, and interviews. However, this is only true if they are thoroughly validated. If they are not validated, they can inadvertently favor certain demographic groups while disadvantaging others.

The best assessment solution providers contract with subject matter experts to create, test, and validate all pre-prepared assessments. As a result, the Society for Human Resource Management (SHRM) reports that 23% of HR professionals said skills testing helps them improve hiring diversity.

  • High Cost and Lack of Resource: Many business and HR leaders express concern about the time and effort required to implement an assessment solution and train their teams to create valid and reliable Excel skills assessment tests. They wonder whether allocating resources to other aspects of their hiring, such as conducting interviews and checking references, would make more sense.

HR professionals are relieved to hear that the implementation process can be quite easy. Many assessment solutions can be deployed within an hour or two. Top solution providers also assign a dedicated assessment expert to each client to help them create assessments like Excel skills tests.

  • They also learn that assessments help them reduce recruiting costs and conserve resources. They can automatically identify top candidates by reviewing assessment results and scores instead of manually reviewing resumes. This saves them hours, decreasing time-to-hire.
  • Attrition During Hiring: Using multiple assessments is better than using none, but requiring too many may scare off applicants and increase time-to-hire. Studies show that 71% of applicants drop out of an application process if it is too complicated or takes too long.

Top assessment solutions include customization options that allow HR teams to choose questions from different assessments. This means recruiters can create a single assessment that covers all aspects of a job instead of requiring candidates to complete multiple tests.

  • Candidate Anxiety: Skills tests make some applicants anxious and uncomfortable, especially if they have limited experience with employment assessments. They fear that if they are nervous, it will hurt their performance and could lead to inaccurate results that do not show their true abilities.

HR professionals know that many candidates underperform on assessments and do better in interviews. So, they consider other factors while screening applicants. For example, some include simulations in assessments or use video response questions to get a comprehensive view of candidates’ capabilities.

Excel Skills Tests Are the Key to Better Hiring

When the right people are in the right jobs, everything runs smoothly, and things get done. A McKinsey study shows high performers are around eight times more productive than average ones.

If you launched a project that would take three years to complete and replaced 20% of the average performers on the project team with top talent, the project would take only two years if the new team members were 400% more productive and less than a year if they were 800% more productive.

The following scenario shows how Excel skills assessment tests can help you identify the best candidates and avoid hiring mistakes.

Emily, the HR manager for an electronics manufacturer, needed to fill a supply chain manager position. The person would coordinate manufacturing and sales operations and oversee shipping and logistics.

The person would work in a fast-paced department, so she looked for candidates with advanced Excel proficiency and operations management experience working in a dynamic environment.

She posted the job and received many responses, some of which sounded promising. She created a shortlist and scheduled interviews with the most promising applicants, and Jeremy emerged as the top candidate. His resume listed operations experience at a few similar companies and the advanced Excel knowledge the job required.

Paul, the department director, interviewed Jeremy and agreed he was the best candidate. Emily called his references, and they all gave him excellent reviews. So, Paul offered Jeremy the job, and he accepted, but Paul had no idea of all the problems yet to come.

It soon became apparent that Jeremy was not qualified for the job. He had worked for other companies and held positions in the operations department. However, the job he had been hired to do required much more extensive experience than his previous jobs. So, he exaggerated his experience on his resume to increase his chances.

He took a long time to create reports because he did not know how to use essential Excel formulas and functions. His reports also contained critical mistakes that caused operations and logistics-related problems. This resulted in production shipping delays, where several orders were for key customers. Paul and Emily met with Jeremy and provided training to help him “climb the learning curve” more quickly. Unfortunately, nothing seemed to help.

The problem reached the boiling point when one of the company’s biggest customers complained about a late shipment. If Sydney, the VP of Sales, had not intervened, the company would have lost the customer. So, Paul was left with no alternative—he had to terminate Jeremy.

This company did not use assessments and relied on resumes and interviews to make hiring decisions. They learned the hard way that these are not best hiring practices since over 77% of applicants embellish their qualifications on their resumes and during interviews.

Jeremy would not have been hired if the company had required applicants to complete assessments, including an Excel skills test. The results would have shown that he did not have the abilities needed for the job. 

Get Started with Excel Skills Tests to Improve Hiring

Employers that use Excel skills assessment tests as part of their hiring can identify outstanding talent quickly, which improves hiring quality and reduces recruiting costs. Many eSkill clients have cut hiring costs by around 70% and time-to-hire by about 60%.

Are you ready to learn how Excel Skills Tests can help you improve hiring outcomes across your company? Contact eSkill to request a demo.

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