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  • Insurance sector - colleagues discussing document - Pearson TalentLens

    HR Challenges in the Insurance Sector

    The insurance sector is facing major HR challenges, compounded by an ageing workforce and a perceived outdated image. With 400,000 professionals nearing retirement, attracting and retaining new talent is essential. Yet only 4% of Millennials are considering a career in the sector, exacerbating the skills shortage. To remain competitive, companies need to modernise their image, promote innovation and offer attractive benefits, while using tools such as psychometric testing to optimise their recruitment process.

  • Meeting of colleagues in the office - Bank and Finance sector - Pearson Talentlens

    HR Challenges in the Banking and Financial Sector

    The banking and finance sector is facing significant HR challenges due to the rapid evolution of the industry and the increasing adoption of AI. By 2024, 87% of banking executives expect major change, but more than half don't feel prepared for it. Furthermore, 65% of financial services employees believe their business will not survive a decade on its current trajectory. An HR approach focused on skills such as critical thinking and an agile organisational structure are essential to attract, recruit and retain the talent needed to adapt and grow in this changing sector.

  • manufacturing industry - employees studying machinary - pearson talentlens

    How to Overcome the Talent Shortage Crisis in the Manufacturing Sector?

    According to the National Association of Manufacturers (NAM), nearly three-quarters of manufacturing executives believe that attracting and retaining a quality workforce is their main challenge. The talent shortage affects many industrial groups, with 10 million jobs vacant in the sector worldwide.

     

    Origins and Consequences of the Talent Shortage in the Manufacturing Industry

    The talent shortage can be attributed to several factors:

    • Aging Workforce: 51% of jobs in the manufacturing sector are held by employees aged 45 to 65 or older. Experienced workers are retiring, and few young talents are stepping in to replace them.
    • Lack of Interest in Manufacturing Careers: The manufacturing industry suffers from a negative image associated with low-paying jobs and difficult working conditions. Only 14% of Generation Z members consider a career in the industrial sector for these reasons.
    • Evolving Technologies and Required Skills: Automation and the adoption of advanced technologies (Internet of Things (IoT), artificial intelligence, 3D printing, robotics) are changing the nature of work in manufacturing. Jobs are becoming more specialized, requiring advanced technical and general skills.
    • Inadequate Education and Training: Training and education programs in the industrial sector are not always aligned with labor market needs, leading to a gap between available skills and those required by employers.
    • Production Offshoring: The relocation of production to low-cost labor countries has reduced the number of manufacturing jobs in some developed countries and made the sector less attractive.

     

    Consequences for Manufacturing Companies

     The talent shortage has significant repercussions for manufacturing companies:

    • Decreased Productivity: With fewer skilled workers available, factories struggle to maintain their usual production levels, affecting production timelines, delivery schedules, and customer satisfaction.
    • Recruitment and Retention Difficulties: Manufacturers find it hard to recruit and retain qualified workers, leading to prolonged vacancies, decreased productivity, and increased costs (loss of revenue, recruitment, and training expenses).
    • Increased Labor Costs: To attract and retain skilled workers, wages and benefits are raised, increasing overall labor costs.
    • Increased Dependence on Automation: Facing employee shortages, many manufacturers invest in automation, which requires significant capital investment and skilled human resources for proper deployment.
    • Safety and Quality Risks: A lack of workers to perform critical tasks (equipment maintenance, quality control) increases the risk of safety incidents or product quality decline.

     

    Strategies to Attract and Retain Talent in the Manufacturing Sector

     Manufacturers can use these strategies to attract and retain skilled workers:

    • Offer Attractive Working Conditions: Provide fair and competitive salaries, appealing benefits, merit-based reward programs, and flexible work options.
    • Provide Training and Personal Development Programs: Help employees acquire new skills and advance in their careers.
    • Promote a Safe and Healthy Work Environment: Ensure the well-being and safety of employee.
    • Foster a Positive Company Culture: Value, respect, and include employees to enhance their satisfaction and engagement.

     

    Best Practices for Developing Manufacturing Team Skills

    Here are some effective methods to develop employees' skills in the manufacturing industry:

    • Mentorship and Apprenticeship Programs: Encourage skill transfer and create a collaborative working environment between experienced workers and new recruits.
    • Innovative Training: Utilize online and on-demand learning platforms, augmented reality (AR), and virtual reality (VR) tools for immersive, real-world scenario training.
    • Certifications and Retraining Programs: Enable workers to develop new skills or specialize in manufacturing fields.
    • Continuous Improvement and Innovation Projects: Include identifying and solving workplace issues, proposing, and implementing new ideas and technologies.
    • Skills Analysis Tools: Evaluate employees' current technical and general skills, identify gaps, and develop personalized training plans to acquire necessary skills. Internationally recognized for over 60 years, the Bennett Mechanical Comprehension Test II (BMCT-II) is particularly recommended in the manufacturing industry to assess mechanical understanding. It evaluates the ability to understand and apply basic mechanical and physical concepts, and the key principles behind the operation, maintenance, and repair of machines. It is suitable for a wide range of professions in mechanics, production, and maintenance, helping to analyze a candidate's or employee's knowledge and logical abilities, and identify those with good spatial perception, mechanical reasoning skills, and an aptitude for learning mechanical processes and tasks.

     

    The rapid pace of technological innovation in the manufacturing sector is widening the skills gap. More and more entry-level and intermediate jobs require technical and general skills. It is crucial to identify, evaluate, and develop these skills within the workforce to overcome the talent shortage.

  • Insurance sector - woman talking and discussing document - Pearson TalentLens

    Major HR Challenge for Insurance Companies: Attracting Young Talent to Maintain Their Dynamism

    The insurance sector holds significant weight in the financial industry. Its revenues are projected to reach $7.5 trillion globally by the end of 2025. However, it faces a major HR challenge linked to the aging workforce and the looming threat of an unprecedented labor shortage. According to the United States Bureau of Labor Statistics, 50% of the current workforce in the insurance sector will retire in the coming years, leaving over 400,000 vacancies. Therefore, insurance companies must rejuvenate their workforce to remain innovative and competitive in the market. However, the sector does not appeal to the younger generation, who show little interest in pursuing a career in insurance. What strategies can insurance companies employ to attract, recruit, and retain young talent?

     

    Obstacles to the attractiveness of youth in the insurance sector

    Image problem

    The insurance sector suffers from an unattractive image and reputation among Millennials (born between 1980 and 2000) and Generation Z (born from 2000 onwards). It is often perceived as a conventional, conservative, and uninventive professional field.

    Unfamiliar occupations

    According to a survey conducted by The Institutes, 8 out of 10 Millennials have limited knowledge of career opportunities in the insurance industry. Young people may not have subscribed to insurance policies yet, and they have minimal awareness and understanding of these products.

    Insufficiently competitive salaries and benefits

    Young people are attracted to competitive salaries and benefits, but the banking and financial sectors as well as Tech & IT appear more attractive.

    Lack of flexibility

    Young people seek a work-life balance offered by remote and hybrid work arrangements, but insurance companies do not always guarantee this flexibility.

    Lack of investment in skills development

    Another factor affecting the attractiveness of insurance companies is a gap in the understanding of skills their employees will need in the future. Young people are eager to learn and acquire new skills to remain employable in an ever-changing job market.

     

    Strategies for insurance companies to attract, recruit, and retain young talent

     

    Developing an attractive corporate culture

    Valuing corporate culture, mission, purpose, and emphasizing collaboration, career progression, flexibility, and other benefits are important. Additionally, promoting commitment to sustainable development, which young people are highly attuned to, is a plus.

    Promoting career options in insurance

    The insurance sector offers a wide range of careers (agent, broker, claims adjuster, risk manager, data analyst, cybersecurity expert, etc.). It is important to promote these career options to young people, so they are aware of all the opportunities available.

    Emphasizing technology

    Insurance companies now offer most of their services through mobile applications (claim submissions, video downloads for claims assessment, inspection planning, claims process tracking, etc.) and utilize Artificial Intelligence (AI) to streamline their processes. Promoting the use of technology in the industry can attract tech-savvy young talent.

    Recruiting via social networks

    Social media is important and relevant for the younger generation. Insurance companies can benefit in promoting their job offers, internships, and compelling content about insurance careers on social networks (LinkedIn, TikTok, Instagram).

    Taking care of onboarding

    Once recruited, it is crucial to support and mentor new hires. Having mentors who will help new recruits network and advise them on progressing in the sector is a real asset.

    Investing in training and professional development

    It is essential to emphasize job stability in the sector and enable young people to acquire the skills they need to perform and adapt to market changes, offering them career advancement opportunities.

     

    Millennials and Gen Z have begun to dominate the job market. These dynamic new talents seek the energy and flexibility that many industries offer. It is important for insurance companies to consider their expectations and capitalize on this pool of talent to address their deficits in human resources and skills that threaten their business.

  • Tech-IT Industry - man checking servers-Pearson Talentlens

    Cross Insights on Talent Acquisition and Retention Strategies in the Tech and IT Sector

    With their experience in the Tech & IT sector, working at a digital services company (ESN) and then as a partner at a digital sector-focused headhunting firm for Estelle Calestroupat, currently a Work Psychologist and Key Account Consultant at Pearson TalentLens, and 5 years at Cisco, a globally renowned IT company, for Anna Ballerand, current HR Manager of Pearson France, they have agreed to share strategies to better attract, recruit, and retain employees in this sector.

     

    7 Strategies to Better Attract, Recruit, and Retain Employees in the Tech & IT Sector

    • Strategy #1 - Highlighting Company Culture: Employer branding must align with the company's values and reality on the ground. "To attract Tech-IT talents, a company must assert its difference, its added value," asserts Estelle Calestroupat, supported by Anna Ballerand, for whom it is essential that the company clearly showcases its corporate culture, and its CSR (Corporate Social Responsibility) initiatives. Estelle Calestroupat also emphasizes the importance of developing a managerial culture aligned with the company's values and ensuring it is deployed at all levels of management.
    • Strategy #2 - Anticipating Future Needs: Being visionary and proactive. The tech and IT sector is continually evolving, HR leaders need to work alongside their business counterparts to proactively plan their talent needs in order help reduce skill shortages in the future and reduce the risk of increased pressures on current staff workloads while new roles wait to be filled.  Modelling future business models HR leaders can see in advance any need for training and development giving employees time and the valued investment to develop. 
    • Strategy #3 - Building Internal and External Networks: Creating a community of former employees and a pool of candidates for potential future employees. The value of networking both internally and external to the business cannot be overestimated. Former employees who have felt valued and invested in can be brand ambassadors for your organization and provide a much-needed route for recommendations. Consider networking events from graduate fairs to community groups. 
    • Strategy #4 - Improving Recruitment Processes: "Recruitment processes are often too lengthy and discourage many," laments Anna Ballerand. "Streamlining processes is necessary to increase efficiency and enhance the candidate experience," she recommends. The skills sought in candidates are also evolving. "It's no longer possible to recruit solely based on technical skills (hard skills)," explains Estelle Calestroupat. "Adaptability and learning ability, as well as the ability to analyze complex, multiple, or even contradictory data, having a broader perspective, as well as pedagogy, interpersonal skills, and teamwork, have become strong success criteria in Tech-IT professions. Values and commitment also play an essential role in the alignment between an employee and the company."
    • Strategy #5 - Investing in Training: To address the challenge of skill development, which is even faster in this sector than in other fields, it is important for companies to invest in employee training. "It involves supporting employees both in constantly evolving technical skills to ensure a solid foundation of expertise within the company and to meet the strong technical appetite of some employees (e.g., investing in certifications), and in the development of certain behavioral skills (especially for career advancements in project management, management, or sales)," specifies Estelle Calestroupat. Anna Ballerand gives the example of Cisco, which offers several training initiatives, including renowned technical certifications in the sector. Their "Graduate Program" (recent graduate program) that she herself implemented at the European level is another example, offering several days of training abroad for new recruits.
    • Strategy #6 - Offering Attractive Working Conditions: The Tech-IT sector is known for offering relatively high salaries to its employees. "There is a fierce battle among digital players to attract the best profiles," testifies Estelle Calestroupat. "This power struggle is reflected in salaries and benefits (company cars, bonuses, profit-sharing, installation bonuses for remote work, proposals for company stock options, etc.). "Competition is such that differentiation between various sector players involves offering additional benefits such as greater work flexibility or a recognition program," confirms Anna Ballerand. "In the technology sector, a culture of pure onsite work makes no sense," reminds Estelle Calestroupat. Flexibility in working hours and formats (remote work, hybrid, onsite) is essential.
    • Strategy #7 - Encouraging Career Development: Managing professional advancement. For Estelle Calestroupat, it is important "to support mobility within the company without confining employees to predefined career paths, provide visibility on advancement opportunities, and support mechanisms in place."

     

    An 8th Strategy - Using Psychometric Tests

    To better recruit talents in this sector, support their skill development, and career progression, HR professionals can use psychometric tests: personality and values inventoriesintellectual aptitude testscritical thinking assessment tests, as well as motivation and professional interest questionnaires.

    They allow them to:

    • Identify individuals most suited to the position and the company's culture.
    • Predict job performance.
    • Reduce turnover rates by fostering better alignment between employees and their work environment.
    • Implement personalized development plans encouraging talent retention.
    • Improve engagement by creating a positive and productive work environment conducive to personal and professional growth.
  • Healthcare-two healthcare professionals walking up stairs in hospital-Pearson TalentLens

    Managing Professional Burnout: Strategies for Healthcare HR Professionals

    Due to increased demand for care, healthcare staff face high workloads, irregular schedules, and stressful situations. This often leads to professional burnout and high staff turnover rates, compromising care quality and job satisfaction. What strategies can be implemented to preserve the mental health of medical personnel? 

     

    Healthcare: A Stressed Sector

    According to the WHO, professional burnout is "a syndrome resulting from chronic workplace stress that has not been successfully managed." Several factors contribute to this:

    Staff shortage: In the medical sector, all positions must be filled to care for patients. Staff shortages result in overtime and increased workloads to manage a higher number of patients, leading to physical and mental fatigue, decreased productivity, medical errors, absenteeism, and departures.

    Innovation: Besides constant advancements in medications and treatments, the medical sector increasingly relies on technology to modernize equipment and surgical techniques. Staff must adapt to these innovations while maintaining transparent and connected patient relations, adding to stress.

    Exposure to risks: Staff are continually exposed to health risks (infections) from contact with sick patients in overcrowded facilities where protective equipment, safe facilities, and prevention measures may be insufficient. Psychological risks also exist due to the emotional burden of the job. Patient deaths or verbal abuse can be stressful and traumatic, influencing staff well-being.

     

    Professional Burnout: A Problem in Healthcare

    Alarming Figures

    According to surveys, nursing has the highest professional burnout rate at 70%. Nurses often feel they can do more than permitted or are unable to provide adequate care due to high patient loads. Overwork triples the risk of professional burnout, leading to intentions to leave the job. About one-third of nurses (32%) consider leaving the profession, while over half of physicians and other healthcare professionals feel exhausted, stressed, and ready to quit due to factors such as staffing shortages, low salaries, mental and emotional strain, job insecurity, inflexibility, and lack of support. 

    Cause and Effect

    Staff burnout results from both staffing deficiencies and high turnover rates, causing a cumulative effect. Burnout affects patients as medical staff struggle with emotional, mental, and physical fatigue, impairing patient relations and care.

     

    Tips to Prevent Healthcare Staff Burnout

    By actively listening to staff, considering their needs, and supporting their learning and career development, HR managers can prevent burnout:

    • Encourage open dialogue to assess well-being, understand needs, and listen to improvement suggestions. Tools like 360-degree surveys or motivation and satisfaction questionnaires for employees or teams are useful for empathy. 
    • Provide recognition and rewards (praise, bonuses, promotions) for highly engaged employees.
    • Invest in training and professional development to keep staff up to date on industry trends, best practices, medical and technological advancements. Motivation and satisfaction measurement tools help tailor career development and training programs.
    • Reduce workload: Use advanced analytics to anticipate care demand and align resources in real-time; rethink roles and processes with new technology (digitization, automation of administrative tasks) to reduce working hours; explore reliable and efficient recruitment methods. Psychometric assessment tests (personality inventoriescognitive ability tests) can assist in this.

     

    "Every member of the healthcare team is crucial to patient outcomes and experiences," says Dr. Lisa Rotenstein, Assistant Professor of Medicine at Harvard Medical School. "It's vital to remember this as we strive to optimize both patient outcomes and our staff's experiences." Healthcare staff burnout is a significant issue facing healthcare facilities and HR professionals in this sector. It is imperative to address it to preserve employee mental health and ensure exemplary care quality.

  • Tech-IT Industry - two colleague working on robotic hand - Pearson TalentLens

    Cross Perspectives on HR Challenges in the Tech & IT Sector

    Estelle Calestroupat, Work Psychologist and Key Account Consultant at Pearson TalentLens, and Anna Ballerand, HR Manager of Pearson France, share a common background: experience in the Tech & IT sector. They have agreed to share their experiences regarding the specific HR challenges in this field.

     

    A Dynamic Sector in Full Expansion

    Estelle Calestroupat and Anna Ballerand agree that the Tech & IT sector is highly dynamic and constantly evolving. While this trend isn't new, it has accelerated significantly in recent years. "Technological innovations are constant. New products, services, and solutions emerge continuously to meet the changing needs of users," notes Anna Ballerand. The attraction to this sector is undeniable. "It no longer appears reserved only for a few experts. The new generations are comfortable with technology and digital tools; it's part of their daily lives, which draws them to work in this field," adds Estelle Calestroupat.

     

    HR Challenges in the Tech-IT Sector:

    • Talent shortage and volatility: The Tech-IT sector is not immune, like many other sectors, to candidate shortages. "The demand for qualified IT professionals often exceeds the available supply, making talent acquisition and retention highly competitive," says Anna Ballerand. Estelle Calestroupat agrees, confirming that "although the number of candidates is growing, recruitment needs are increasing even faster." She warns that "companies in the sector must rethink their approach to recruitment, management, and employee training. Those who succeed will have a real competitive advantage."
    • Skills obsolescence: The rapid evolution of new technologies requires continuous training. Anna Ballerand emphasizes that "keeping staff skills up-to-date can be a challenge for HR in terms of continuous training and professional development."
    • Need for inclusion: The Tech-IT sector faces challenges regarding inclusion. "Companies need to implement strategies to encourage variety in their teams and address underrepresentation of women and minorities," suggests Anna Ballerand.

     

    The Increasing Use of Psychometric Tests to Assess Skills

    The skills sought in the Tech-IT sector are varied and necessarily depend on the context, the company, and the position. "All these elements require, as with every recruitment process, an analysis of expectations," recalls Estelle Calestroupat before specifying that "generally, there will be expectations in terms of technical skills/knowledge (or at least an inclination towards new technologies), adaptability/learning ability, analytical skills, and transversal skills (such as organization, rigor, teamwork, communication, etc.)."

    To assess these skills, HR professionals can rely on personality and value inventoriestests of intellectual aptitudes, and tests of critical thinking. "Psychometric tests allow either the evaluation of a candidate's strengths and areas for development in relation to the expectations of a position, as in the case of an assessment during recruitment, or to accompany an employee in becoming aware of their comfort zones and areas for improvement (self-awareness, understanding of their functioning) in a developmental logic," says Estelle Calestroupat.

    Their advantages are numerous, adds Anna Ballerand:

    • Finer selection of candidates: Evaluating candidates' cognitive abilities, personality traits, and behavioral skills helps select individuals most suited to the position and the company's culture.
    • Prediction of job performance: Identifying candidates' strengths and weaknesses enables recruiters to predict their performance and make more informed hiring decisions.
    • Reduction in staff turnover: Matching employees' skills and personality with the job and company requirements reduces turnover rates.
    • Professional development: Understanding employees' development needs leads to personalized development plans that promote talent retention.
    • Improvement of employee engagement: Recruiting individuals whose values and personality are compatible strengthens team cohesion and fulfillment in a positive and productive work environment.

     

    Estelle Calestroupat has worked in the IT and new technologies sector for over 10 years. Initially, she worked internally at a digital services company in project management (defining competency frameworks and building evaluation processes), training for recruiters and recruiter managers, and operational recruitment (recruitment and internal mobility) for manager, sales, and bid manager profiles. She then collaborated with a headhunting firm specializing in the digital sector, again focusing on sales, bid managers, project managers, and managers.

    Anna Ballerand spent 5 years at Cisco, a globally renowned IT company, responsible for recruitment and employee and manager training support, implementing social benefits, conducting professional interviews, and promoting campaigns such as Great Place To Work®.

  • Retail Industry - two colleagues working together at the till - Pearson TalentLens

    Psychometric Assessments: A Means to Reduce Turnover in Retail

    The retail sector has long been associated with high turnover rates. It hovers around 60%, meaning that more than half of the staff is likely to change within a year, according to McKinsey. It is imperative for companies operating in this sector to refine their HR practices to optimize employee retention because high turnover rates have significant impacts on their commercial performance. They can rely on psychometric assessments for this purpose.

     

    Turnover Rate: A Key Performance Indicator

    The turnover rate (or employee turnover) is a key performance indicator (KPI) that quantifies the rate of voluntary or involuntary departure and replacement of personnel within an organization during a specific period. It assesses the stability of its workforce and its overall health.

    A high turnover rate often reflects employee dissatisfaction, inefficient recruitment or onboarding processes, and any potential organizational issues within the company.

    Conversely, a low turnover rate reveals employee satisfaction, effective talent retention strategies, and a pleasant work environment.

     

    The Proven and Hidden Costs of High Turnover Rates

     Understanding and analyzing the turnover rate is a strategic imperative. It directly impacts the company's finances and indirectly affects its operational effectiveness.

    • Costs of Departure/Recruitment: On average, turnover costs in the retail sector represent 1.5 to 2 times an employee's annual salary, according to Built In. Each time an employee leaves the company, the recruitment, onboarding, and training process must be restarted, and human and financial resources must be allocated to ensure their replacement. The departure of an employee can also entail severance payments. Furthermore, the time it takes for vacant positions to be filled and new employees to become operational, the workload for existing employees may lead to overtime payments, directly impacting the company's financial costs.
    • Loss of Production: Turnover affects operational continuity, team cohesion and productivity, and company performance. Constant staff turnover can lead to dissatisfaction among existing employees, even encouraging new departures. Turnover, in this sense, can lead to decreased employee engagement, especially if it is high, and impact on the customer experience and sales due to a loss of service quality.
    •  Negative Impact on the Company's Brand Image: Employees who work in a company with high turnover are unlikely to recommend it to others as a place to work or even to use its services or buy its products. The company loses attractiveness.

     

    The Role of Psychometric Assessments in Employee Retention

    Psychometric tests explore personality, assess abilities, identify motivations, interests, and values of an individual.

    • Personality Inventories: They assess personality traits, which are behavioral tendencies and interpersonal characteristics related to relationships with others (leadership, sociability, cooperation, empathy, etc.), emotional management (stress resistance, flexibility/adaptability, etc.), work approach (reliability, attention to detail, regulatory compliance aspect, success/effort, perseverance, initiative, etc.), and mode of thinking (innovation, analytical reasoning, independence, etc.).
    • Intellectual Aptitude Tests: They provide information on numerical, verbal, spatial, and mechanical skills as well as the ability to solve complex problems and the ease of learning. They also assess critical thinking (ability to quickly grasp key aspects that will impact any decision, distinguish assumptions from facts, evaluate arguments in favor of possible actions, and draw conclusions that will lead to objective decision-making).
    • Motivation and Professional Interest Questionnaires: They provide information on an individual's motivational state, sources of motivation/demotivation, professional interests, needs, and values to better support them in developing their career plan and make them feel fulfilled professionally within the company.

    In recruitment, psychometric tests allow retail companies to:

    • Gain in-depth knowledge of a candidate's potential, beyond their resume.
    • Secure recruitment through concrete and reliable information provided.
    • Ensure the candidate's profile matches the job requirements and reduce turnover.
    • Enhance the candidate's experience by identifying their strengths and areas for improvement.

    In development, psychometric tests allow them to:

    • Identify and develop the potential of their employees.
    • Identify their skills for better development.
    • Support internal mobility.
    • Better understand each staff member to improve their employee experience.

     

    To reduce their turnover rates, retail companies must rethink their talent acquisition and retention strategies. The use of psychometric tests allows them to recruit individuals whose profile aligns with the company's culture and the position to be filled, ensure they have the necessary skills, and evaluate those that are useful to develop to encourage them to stay and evolve within the company for as long as possible.

  • A group of co-workers brainstorming - Pearson TalentLens

    Do You Know the Financial Impact of Your Most Recent Unsuccessful Hire?

    Recruit talented employees & eliminate the cost of hiring the wrong candidates.

    According to research conducted by CareerBuilder in 2016, the average cost of hiring the wrong employee amounts to $17,000. However, based on a study from the U.S. Department of Labor in 2021, this figure can escalate to as high as $240,000, depending on the company and role.

    On average, the total costs to lay-off an unsuccessful hire and recruit a new hire is 30% of the annual salary. Consequently, making the correct hiring decision becomes imperative. But how can HR and hiring managers ensure they select the right candidates? Below are strategies to avoid making poor recruitment choices and avoid the financial ramifications of an unsuccessful hire.

    Preventing Unsuccessful Hires

    Traditional recruitment processes often involve a straight forward formula where people apply on a vague or generic job description. Afterwards, several applicants are chosen for interviews, and one candidate is selected soon after. However, what may have initially appeared to be a suitable fit can swiftly turn into a hiring mistake. It can turn out that the new employee doesn’t possess critical skills that he or she claimed to possess. Or their personality, values and behaviour turned out not to match with that of their colleagues.

    The primary challenge in a recruitment process is subjectivity. Quite often, HR and hiring managers ask questions like 'What are your main weak points?' and receive responses such as 'I work too much’ or ‘I’m a perfectionist’. This reveals nothing about the actual skills required for the job." If you realise that nearly 60% of unsuccessful hires fail due to an employee's inability to meet the expected level of performance, it becomes crucial to have a clear understanding of the required skills right from the start to avoid hiring disasters. To tackle this, you can consider the following:

    1. Clearly define prerequisite and trainable skills 

    Prerequisite skills are essential for the role which candidates should demonstrate during the interview as they won't be trained after hiring. They can range from general qualifications like prior experience in a specific field to specific expertise in a particular software program. On the other hand, trainable skills are those that employees will learn on the job, requiring some level of proficiency but not necessarily prior experience.

    2. Avoid open-ended interview questions that provide little insight

    Ask questions that will make candidates showcase their prerequisite skills instead of open-ended questions that provide little insight. For example, a question like “What experience do you have with working with this CRM software?” will provide you more valuable insights than “What do you do when you have a conflict with a colleague?”. Once the skills have been demonstrated, you can delve into other questions if necessary. However, there is no point in asking them with candidates who cannot prove their ability to perform the required work.

    3. Transform subjective 'soft skills' into objective criteria.

    When it comes to qualities like "cultural fit" and being a "team player," the interpretation typically vary across companies. To make these soft skills more objective, you can break them down into specific components. So clearly define the qualities you seek in a team player or cultural fit and assess whether your candidates possess these concrete traits. Structure interview questions that allow you to evaluate these components in your candidates as well.

    4. Make use of psychometric tests

    Psychometric tests for recruitment can be used to objectively measure a range of crucial skills, such as:

    • Numerical skills: the ability to carry out arithmetic computation and reason with numerical data.
    • Verbal skills: the ability to reason with concepts framed in written and spoken words.
    • Abstract skills: the ability to solve unfamiliar problems and learn new things quickly.
    • Critical thinking: the ability to separate facts from assumptions, to evaluate these and to draw the right conclusions.
    • Personality traits and values: measures whether personality traits (such as dominance, responsibility and recognition) and values (such as achievement, orderliness and goal orientation) of a candidate will likely match with the values and culture of the company. Personality tests that are very useful for recruiting

    Psychometric testing enables the HR and hiring manager to see if ability and personality are closely aligned with the environment, company, and role. Insights into aptitude, skills, personality, and motivation are essential to select the very best candidates and to develop and guide your workforce throughout their career at your organisation.

    5. Review candidate’s digital credentials

    Digital credentials – often in the shape of a digital badge – provide proof of someone’s learning achievement. These are issued by an educational organisation following a learning experience, such as the completion of a (digital) course or the successful passing of an exam. Such credentials are valuable as they can support or question the skills a candidate claims to possess.

    6. Don’t rush!

    Approach the hiring process gradually instead of hastily filling an open position. Although your team may be stretched thin with one or more employees short, remember that an unsuccessful hire won't solve the problem. Opting for a quick hire might provide temporary relief but will ultimately bring you back to square one. It's crucial to prioritize quality over speed, so take the necessary time to find the right candidate and sidestep the expenses associated with a poor hiring decision.

    7. Withhold subjectivity until the end

    Despite the various ways to make an objective hiring decision, you may have two candidates possessing pretty much the same skills, values, and personality traits. In such situations it can be inevitable to make a final decision that is based on subjective grounds like representation or shared personal interests. It is important that such decisions are made only at the end of a recruitment process, so it is certain that the selected candidate possess the required skills and has the desired personality and values.

  • Women talking on phone-recruitment-pearson talentlens

    8 Tips to Optimize Your Recruitment Process

    It's never too late to improve your recruiting process. Follow these 8 tips and best practices to improve your recruitment and hiring decisions. 

    The methods and means used for recruitment differ from one company to another. However, most HR professionals agree that mistakes in the recruitment and hiring process can have serious negative effects on the organization. Recruitment issues should therefore not be underestimated in terms of work climate, motivation, productivity and financial impact. To help you limit the risks and find the right candidate, let's define bad recruiting practices and explore our top tips for successful recruitment.

    What is bad recruiting?

    For various reasons, recruiters sometimes make recruitment errors: incomplete job description, imprecise missions in the job offer, etc. Sometimes it's the candidate's profile that does not correspond to expectations: lack of skills, or conversely, too qualified. Another scenario is recruiting an employee without having formally assessed their soft skills: here, the recruiter relies on their intuition and somehow skips the different stages.

    What are the consequences for the company?

    The consequences of bad recruiting are sometimes not felt until a couple months after a hire has been made. An employee who does not share the values ​​of the company can become a disruptive element in a team and be a source of demotivation over time. Moreover, their lack of involvement can negatively impact the productivity of the team and organizaiton.

    The direct consequences of poor recruitment are also an increase in turnover, or even an increase in work stoppages. In the long term, the cost for the company is significant: cost of another recruitment process for the same role, cost of possible replacement and training of the new employee, drop in productivity, consequences on the rest of the team if certain tasks are to be distributed, etc.

    8 Tips for an Effective Recruitment Process

    It's never too late to improve your talent acquisition and recruitment processes. Here are a few tips:

    1. Create an Accurate Job Description

    One of the reasons for poor recruitment is the lack of clarity about the responsibilties and the skills required for a position. As you write the job description for an open role, be sure it includes the precise responsibilities, the environment and the working relations within the team and organization, the candidate profile sought (level of training, experience, background, skills, etc.), and the relevant success metrics for the role. An accurate job description defines the ideal candidate profile for both hiring managers and recruiters, simplifying sourcing and improving communication between the entire hiring team.

    2. Write a Transparent Job Post

    Now that you've written an accurate job description, it's time to post and promote the open position. In addition to the responsibilities, skills, and experience required, it's best practice to also include work location (in-person, hybrid, fully remote), type of employment contract (part-time, full-time, contractor), and the expected salary range for the position. To further improve the candidates experience, you can also include detailed information about the stages of the recruitment and hiring process at your organization. Once you have all that information, promote the job internally on your company's intranet, as well as externally on popular job boards such as LinkedIn, Indeed, and Glassdoor.

    3. Don't Overlook the Importance of Your Employer Brand

    Now more than ever, emplyees want to work at organization that share similar values as them. To help attrach the right profile of candidates, companies should promote their values and culture across the various channels that make up the candidate lifecycle, including the careers website and social media. Portraying corporate/social values, business projects, team outings, employee testimonials showcases the attractiveness of your employer brand and contributes to a positive candidate experience.

    4. Prepare for Job Interviews

    Besides the interviewer not showing up, nothing is more frustrating for a candidate than facing redundant questions from different interviewers. Interview preparation ensures a shared understanding of the ideal candidate profile. A well-prepared interview team builds trust and encourages candidates to share their experiences and motivations. To implement this best practice, develop interview guides that specify the attributes or skills each interviewer should assess, include useful questions, and incorporate a standardized scoring rubric.

    5. Assess All Skills

    Before making a hiring decision, it's essential to assess all their skills. This includes soft skills, hard skills, as well as attributes like personality and learning style preferences that impact individual and team culture and productivity. To do this, use tools like psychometric assessments to measure cognitive, behavioral, and interpersonal skills. You can use separate assessments to measure each area.

    6. Make Objective Hiring Decisions

    Your recruitment process and the tools you employ throughout the candidate journey should improve decision-making for hiring managers by gathering objective data. By using precise job descriptions, pre-employment and psychometric tests, well-informed interviews, and standardized candidate scoring criteria, you can identify the candidate who aligns best with the role and the organization. Additionally, this approach helps reduce biases that may emerge when making judgments based on intuition or interview interactions.

    7. Reply to All Applicants

    HR should promptly inform all candidates of their application status. Failing to respond, even to candidates who were not selected for interviews, can damage the company's image and employer reputation. Encourage interested applicants to consider future roles within the company and wish them luck in their job search. For candidates who were interviewed but not selected, consider providing constructive feedback that could benefit them in their future interviews.

    8. Refine Your Onboarding Process

    The initial days and weeks within the organization can significantly impact the employee's overall experience. Effective onboarding should encompass various activities and topics to ensure a seamless transition into the new role. These elements include orientation, introduction to the company history and culture, access to essential resources, familiarity with policies and procedures, clear role definition, mentorship and buddy systems, open feedback and communication, performance expectations, and focused training. A well-structured onboarding process not only helps new hires feel appreciated and engaged but also equips them for success in their roles, benefiting both the individual and the organization. It lays the groundwork for a positive and productive working relationship.

    Optimize Your Recruitment Process with Pearson TalentLens

    Learn how Pearson TalentLens pre-employment and psychometric assessments can help empower your recruiting and hiring teams with the right talent insights.   

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