On Monday’s podcast on Pre-Employment Testing for Small Business, we talked with Dr. Jesse Llobet, Industrial Psychologist and President of Psymetrics, who explained that small businesses should start using pre-employment testing for the following reasons:
- Research proves that pre-employment assessments tend to be three to four times more predictive (of how well a candidate will perform on the job) than your standard job interview.
- A lot goes into the creation of professionally developed tests: first the characteristics are identified that need to be tested, then employees are tested and performance data is collected, and an IO (industrial/organizational psychologist) statistically determines and shows how well a test predicts people’s performance on the job.
- Professionally developed pre-employment tests offer an objective and consistent way to compare and assess applicants.
Despite these indisputable business reasons, most small businesses probably won’t introduce pre-employment testing into their hiring practices because there seems to be a high-barrier to entry. What are these barriers?
The High Barrier to Entry into the World of Pre-Employment Testing
First, there’s the complication factor. Implementing one or more pre-employment tests into your hiring process seems complicated, and brings up all sorts of questions, such as:
- What tests should I use?
- What vendor or experts should I contract with?
- What legal issues arise when I use pre-employment assessments?
- At what stage in the hiring process should I use these pre-employment tests?
- How do I integrate the pre-employment testing process and results with our current hiring and recruiting systems?
Jesse, in Monday’s podcast on Pre-Employment Testing for Small Business, actually touched on most of these questions. The last question, is something you can ask the vendor/test-providers that you’re considering.
The second barrier to entry is cost – it seems very expensive to get setup and then integrate pre-employment tests into your hiring process. Small businesses don’t have the funds to do validation studies and pay the high hourly rates that IO psychologists demand – $250 to $400/hour (Why didn’t I become an IO psychologist!?).
Affordable Pre-Employment Testing Options
However, here are affordable pre-employment testing options/providers that small businesses should consider:
- Psymetrics, Inc – This is Dr. Jesse Llobet’s company, which has developed a library of both behavioral/personality and cognitive/skill-related pre-employment assessments. You can listen to our interview with Jesse here.
- Pearson’s TalentLens – TalentLens offers a 6 different personality and cognitive ability/skill-related assessments that can be used to identify talent during the hiring process. Their tests range between $18 to $34 per candidate.
- Wonderlic – Wonderlic offers a healthy mix of cognitive ability/skill-related assessments, and personality/behavioral assessments. When I talked to a sales rep a year ago they ha a $250 setup fee, which is for getting your company setup with an online testing/admin portal. Then the personality assessment was $72.50 per candidate, and the cognitive test was $19.75 per candidate. You can purchase higher quantities of tests for a lower per-test rate.