How can businesses with narrow margins benefit from using pre employment testing?
You might believe that pre employment testing is only of benefit to large national or multinational companies with big budgets and high margins. Nothing could be further from the truth, because it’s often the businesses with narrow margins and tight budgets who really benefit from using a pre employment assessment during the recruitment process.
In today’s competitive marketplace, many companies, particularly those that are in the retail industry, have very narrow margins and need to keep all of their costs down, including their labour costs. This seems to preclude the additional costs of pre employment testing, however it has been shown that an investment in the hiring process can lead to greater profitability in the long run.
Pre employment testing equals greater profits
When you see companies with low margins generating higher than average profits, you can pretty much guarantee that they have invested their time and money in hiring the right people for their company. A personality assessment and other psychometric tests, used during the recruitment phase, have been clearly shown to help employers find the most suitable people for their business, giving them an edge on their competitors and a positive impact on their bottom line.
A pre employment assessment identifies candidates who are matched perfectly to specific roles within an organisation. When an employee is happy in their work and feels supported and appreciated by their employer, they are unlikely to leave for greener pastures.
A lower turnover and higher retention rate is often the result of a successful recruitment phase, characterised by pre employment testing. Happy and content employees lead to increased sales and profits for the company, ensuring that the company’s investment in the recruitment process was very profitable.
On the other hand, employing the wrong people for your company, leads to higher turnovers and lower retention rates, due to disgruntled employees looking for better working conditions elsewhere. Staff who do not feel happy in their work and have no loyalty to the company, don’t work at their best, resulting in average sales, slim margins and mediocre profits.
All of this can be turned around by a simple investment in the recruitment process, using pre-employment tests, such as a personality assessment and other aptitude tests to employ the right people for your company. This creates a positive cycle leading to higher margins and profits, rather than a negative cycle leading to narrow margins and returns.
To find out if pre employment testing can help your business become more competitive, call us on 07 3535 1220 or send us an email.
