For you as an HR leader, one of the biggest priorities is to recruit top candidates. So, you carefully craft job descriptions, post available positions, and screen applicants. Once you shortlist candidates, you interview the ones who are best qualified. The best candidate wins, and you extend an offer.
That’s how the process works in a perfect world. Unfortunately, the world is not perfect, so the best candidate does not always win. There are two reasons why. The first is ambiguous or undefined hiring criteria, and the second is unconscious bias.
How Ambiguous or Undefined Criteria Negatively Affect Hiring
Hiring teams can only make good decisions if they understand which skills and competencies candidates need. They also need clear guidelines for rating applicants consistently and fairly.
The first step toward achieving these goals is to conduct a thorough job analysis to create a job description that accurately describes the skills and experiences applicants need to perform the job successfully. This is important because job descriptions with inaccurate and undefined job requirements lead to hiring mistakes and can make your company vulnerable to discrimination lawsuits.
The next step is to create a validated skills assessment test that all applicants must complete. When you review the results, you can identify the top qualifiers and eliminate those lacking the necessary skills and experience.
In the past, you could rely on the information candidates listed on resumes and provided during interviews. Unfortunately, this is no longer possible since over 70% of applicants lie on their resumes and exaggerate their qualifications during interviews. Basic skills assessment tests provide measurable data that proves which candidates really do meet job requirements.
How Unconscious Bias Can Taint Hiring Decisions
Being biased means making snap judgments about people, which can be deliberate or unconscious. An example of deliberate bias would be deciding not to hire a candidate because of who they are. For instance, if a Hispanic woman was clearly the best candidate for a COO position, the hiring team could decide not to offer her the job based on her gender, race, or both, regardless of her qualifications.
Unconscious bias means favoring candidates because you share common interests and experiences. For example, a hiring team member might be partial to a candidate who attended the same university as they did. If they enjoy skiing, they might favor an applicant who also likes skiing and has gone to some of the same resorts.
Both deliberate and unconscious bias result in hiring decisions that are irrational and unfair. Bias also causes lower employee morale and productivity. A Deloitte study showed that 68% of U.S. employees feel workplace bias negatively affects productivity, and 84% say it affects their mental health.
Business leaders agree that workforce diversity positively impacts business performance and leads to greater innovation and skill-sharing. It also improves productivity and results in increased revenue. Studies show that diverse teams make decisions that deliver 60% better results and also make better business decisions in 87% of cases.
How Basic Skills Assessment Tests Prevent Bias
Using basic skills assessment tests can eliminate bias in hiring. All applicants complete the same test, answer the same questions in the same order, and are evaluated using the same criteria.
Traditional, unstructured interviews allow bias to enter into hiring decisions, so if a skills assessment test includes questions that applicants must answer orally, organizations use video response questions to conduct structured interviews.
In an unstructured interview, interviewers and candidates meet face-to-face and engage in small talk. Hiring team members typically ask questions like, “What are your greatest strengths?” and “Where do you see yourself in five years?” Questions like this cause bias because the conversation differs for every candidate. So, the conversation can go in any direction, which leaves the door open for bias.
Structured interviews minimize the chance of bias because candidates have no direct contact with hiring team members. Applicants listen to the questions, record their answers, and upload them. Hiring team members rate each candidate’s answers using defined criteria, and their scores and comments are recorded automatically. Some organizations even turn off the video so hiring team members cannot see the candidates and can only listen to their answers.
Get Started with Basic Skills Assessment Tests
The quality of the talent you hire affects your bottom line and your ability to maintain a competitive edge. According to a McKinsey study, if you replaced 20% of the average talent on a project team with top talent to work on a three-year project, it would take the team less than two years to complete the project if its members were 400% more productive and less than a year if they were 800% more productive.
The study also showed that if a competitor hired talent that was 20% better than yours, the company would beat you to market even if it started work on the same project a year or two later.
Are you ready to learn how basic skills assessment tests can help you ensure consistency in your hiring process? Contact eSkill to request a demo.