Employee assessments are essential tools for every organization that wants to improve performance. Studies show that top talent can increase productivity by up to eight times. However, recruiting top performers is challenging because we are amid a global talent shortage. 

There is a worldwide talent shortage of more than 85 million people according to a Korn Ferry report.Around 77% of employers say they are having difficulty finding qualified candidates.

Implementing a solid workforce development strategy using the right employee assessment tools can lead to a more engaged, productive workforce. Employee assessments help managers evaluate employees' abilities, identify gaps in skills or knowledge, and provide targeted training and development. 

Companies need robust tools to measure competencies, identify growth areas, and enable personalized career progression in today's rapidly changing business landscape. Sporadic performance reviews are no longer sufficient because organizations must regularly assess and develop employee skills to remain competitive. This is where consistent employee assessments are invaluable for empowering workforces.

Why Assessing Employees Is Important

Organizations should implement regular assessments to meet the following goals:

• Recognize Top Talent: Employee assessments can identify your strongest performers with potential for advancement so you can groom them for leadership roles.

• Identify Skill Gaps: Employee assessment tools can diagnose where our employees need further training and development so they can excel in their jobs and keep their skills current.

• Provide Performance Feedback: Managers can set clear expectations by giving constructive feedback on strengths and improvement areas during assessment discussions.

• Facilitate Goal Setting: Insights from employee assessments help managers ensure goals and objectives are aligned with individual development needs and organizational objectives.

• Guide Rewards and Recognition: Assessments can provide documentation that justifies compensation, bonus, and promotion decisions and demonstrates they were based on merit and achievements.

• Boost Engagement: Employee engagement and retention improve because employees know employee assessments lead to growth opportunities.

Types of Employee Assessment Tools

There are many employee assessment tools available to evaluate hard and soft skills:

• Skills Tests: Skills tests measure technical proficiency for candidates who apply for jobs that require competency in specialty areas, such as software, accounting, and equipment operation.

• Simulations: Exercises mimicking real-world tasks reveal abilities in action and decision-making.

• Psychological Assessments: Personality, cognitive skills, and emotional intelligence predict on-the-job behaviors. 

• 360-Degree Feedback: Gathering peer, manager, and subordinate perspectives provides a comprehensive evaluation.

• Performance Appraisals: Annual or quarterly reviews measure execution against goals and expectations.

• Work Sample Reviews: Evaluating writing samples, presentations, reports, and other contributions provides insights.

• Behavioral and Cultural Fit Assessments: These assessments show whether applicants’ motivations are aligned with company values.

Best Practices for Employee Assessments

These are some guidelines to follow that will ensure your employee assessment initiatives drive results:

• Use a variety of employee assessment tools to get a complete picture of competencies.
• Customize employee assessment tools based on the most vital capabilities for each role.
• Make employee assessments a regular, ongoing program. Do not just conduct annual reviews.
• Provide notice and preparation time for skills demonstrations and tests.
• Train managers on consistent, unbiased employee assessment techniques.
• Establish clear rating criteria aligned with job expectations and corporate standards. 
• Share results transparently while maintaining confidentiality.
• Tie employee assessment tools directly to business objectives and the capabilities needed to achieve them.

Mitigating Unconscious Bias 

Unconscious bias will negatively impact talent decisions. Regular skills-based employee assessments reduce bias by providing objective insights into employees’ capabilities. Studies show that unconscious bias creeps into workplaces more than expected. 

Nearly 80% of HR professionals admit that bias affects hiring and promotion decisions by influencing the evaluators’ perceptions. Employee assessments minimize bias by providing data-driven insights and focusing on proven skills and knowledge rather than subjective factors.

The Cost of Hiring Mistakes

All organizations strive to avoid hiring mistakes because they are expensive and negatively impact productivity. If a manager earning $60,000 is terminated, the cost to a company can be as high as $840,000, including hiring costs, salary, benefits, severance, disruption to productivity, and lost business opportunities.

The business also loses what it has invested in the employee. The cost to hire and onboard a new hire can be as high as $240,000. So, if the employee does not work out, it loses its investment and must incur additional costs to recruit and onboard a replacement.

Get Started with Employee Assessments

Organizations need specialized teams that can pivot with industry transformations, and workers want opportunities to expand their capabilities and maximize their possibilities. Comprehensive employee assessments make both possible by enabling HR teams to proactively identify workforce opportunities.

Implementing continuous employee assessments is a smart talent strategy for organizations that want to build a resilient workforce. Assessments provide the tangible insights required to nurture capabilities, improve job fit, evaluate highflyers, and guide personalized development.

Want to learn how employee assessment tools help you improve workforce productivity? Contact us to request a demo.