Prehire Assessment Solutions:Market Primer

Overview

In a tight talent market, organizations are looking for ways to leverage new andexisting channels more effectively. According to 70 percent of respondents in

Deloitte’s 2019 Global Human Capital Trends report, recruitment remains animportant issue1. From traditional external candidate sourcing platforms tointernal talent pools and the alternative workforce, mature talent acquisition (TA)teams are working to maximize each source to deliver the right candidate at thepoint of need. TA functions have traditionally lacked the data and insightsnecessary to link applicant data to performance and retention. But asorganizations adopt increasingly data-driven approaches to recruitment,technology can help provide the insights needed to effectively evaluate candidates.

Prehire assessment solutions cover a broad scope of candidate evaluation optionsthat can be used to hire individuals for values, fit, and potential. High-performingorganizations that leverage these solutions’ advanced capabilities are betterpositioned to quickly find the right talent for the role and align their TA strategywith HR and business needs. Buyers need to understand which solution categoriesand capabilities are currently available and how these solutions fit with broaderTA team objectives and the factors associated with TA team maturity.

In This ArticleThe current state of the prehire assessment marketaSolution capabilities that can help drive higher talent acquisition maturityaCategories of prehire assessment solutionsa

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MARKET LANDSCAPE

Mackenzie Wilson, Senior Research AnalystBersin, Deloitte Consulting LLP

Denise Moulton, Vice President, Talent Acquisition Research LeaderBersin, Deloitte Consulting LLP

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Prehire Assessment Solutions: Market Primer

The State of the Prehire Assessment MarketThe prehire assessment space is heating up as advanced technologicalcapabilities make their way into solutions, increasing speed and data-gathering accuracy. This market shift is also reflected in changingpractitioner expectations, as Deloitte’s 2019 Global Human Capital Trendsreport also cited that 75 percent of respondents expect technology to playa greater role in assessment activities over the next three years.2

Assessments have traditionally been used as a transactional part of therecruitment process, often incorporated later in the hiring funnel to justifyrather than help inform the selection process. However, organizations arestarting to reconsider their use of assessments to deliver strategic value,leveraging a range of offerings earlier in the process to help recruitersbetter understand the applicant pool and applicants’ potential for successboth within the organization and the particular role. This shift in approachhas coincided with an explosion of candidate matching and rankingsolutions that, while outside the scope of this landscape, also seek toautomate the identification of top prospects, including both active andpassive leads.

Coupled with a well-defined job analysis3 and in alignment with a broaderassessment strategy,4 prehire assessment tools have the potential to helprecruitment teams quickly identify high-quality talent to meetorganizational demand while simultaneously aiding performance andretention.

When considering the use of prehire assessment technology, it’simperative that the solution is evaluated in the context of the broaderrecruitment strategy. Our High-Impact Talent Acquisition research foundthat high levels of TA maturity are correlated with better business

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KEY POINT: Prehireassessment tools can helprecruitment teams keep upwith organizational demandwhile simultaneouslyoptimizing performanceand retention.

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Prehire Assessment Solutions: Market Primer

outcomes. For example, highly mature TA functions realize a 30 percentproductivity advantage and an 18 percent increase in revenue comparedto their less mature counterparts.5 This research also identified five factorsfor building organizational maturity. High-maturity organizations areaddressing each of these factors strategically, consistently evaluating theirtools and approaches to optimize the TA function. The factors also providea meaningful lens through which to assess solution provider capabilities,which can be directly tied to organizational objectives and key businessand talent outcomes.

Prehire Assessment Solutions and the FiveFactors Associated with Talent AcquisitionMaturityFive factors are important in building a mature TA function (see Figure 1)and also key to evaluating prehire assessment solution capabilities.Although a solution provider might not address all of these factors, buyersshould expect a number of them to be addressed as part of their coreoffering.

Talent Acquisition AlignmentTalent acquisition alignment refers to how well the TA function is integratedacross HR and with the business as well as to the strength of therelationships between recruiters and hiring managers in understanding

Figure 1: Five Factors for Talent Acquisition Maturity

Source: Bersin, Deloitte Consulting LLP, 2018.

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KEY POINT: Buyers shouldexpect multiple maturityfactors to be addressed aspart of a solution provider’score offering.

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Prehire Assessment Solutions: Market Primer

role requirements. This is critical because, according to our High-ImpactTalent Acquisition research, more than two-thirds of high-maturity TAteams are deeply integrated with talent management, compared to 16percent of low-maturity TA functions.6 Prehire assessments have a role toplay by incorporating business needs into the assessment design,proactively flagging high-performers, and incorporating benchmark datato bridge the gap between selection and performance / retention.

Personalized Talent JourneyCreating a positive candidate experience that’s consistent with theorganization’s employment brand is key. The assessment process shouldreflect role expectations and also be a clear extension of the candidate’sjourney. Each stage in the recruitment process is an opportunity forengagement and relationship-building with candidates,7 and, whileassessments have traditionally had a negative candidate perception (oftenseen as onerous and impersonal), solution providers are offering creativesolutions that make the experience of completing an assessment moreenjoyable. Solutions offering a seamless experience that is customized toreflect and reinforce the organization’s culture and brand are wellpositioned to support this factor.

Strategic RecruitingStrategic recruiting relates to talent acquisition’s ability to anticipate theneeds of an organization. Through deep integration and understandingenterprise talent strategies, TA is able to refine its practices and developeffective sourcing strategies that align with current and future needs.Having an effective assessment enables the TA function to operate moreseamlessly and also refines selection to include factors such as fit,potential, values, and skills. Additionally, capabilities to tie performanceand retention data back to candidate results are key to this factor, as 90percent of high-maturity TA teams encourage hiring for long-termpotential.8

Example: Winning the War on Talent—InternalMobility

A recent report suggested that roughly three-quarters of workers planto remain with their current employer no longer than five years.9Employers can no longer afford to ignore this unsettling truth: theymust focus on finding, developing, and retaining their top talent orrisk losing them to other organizations offering better opportunities.

Given the healthy job market, employment opportunities abound, andworkers are willing to make bold moves for increased personal andcareer development. Workers want to see a clear path where skills aredeveloped, new capabilities are nurtured, and work is meaningful inexchange for a longer-term relationship with their employer. Fororganizations, it signifies recoding the prevailing norms about internal

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KEY POINT: Solutionproviders are offeringcreative solutions toenhance the assessmentexperience.

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Prehire Assessment Solutions: Market Primer

Data and AIAs organizations continue to incorporate more advanced data capabilitiesand other emerging technologies into their core business functions, TAteams are also exploring the use of technology-enabled solutions toenhance their delivery offering. When leveraged effectively, these tools canhelp deliver a competitive advantage, as high-maturity TA functions arefour times more likely than low-maturity teams to incorporate advancedtechnology into their process.10 In the prehire assessment solution market,this may include capabilities such as advanced data and analytics, smartranking or matching, and immersive experiences like virtual or augmentedreality.

Capability DevelopmentThe recruiter’s ability to continuously regenerate their skills and buildcapacity is essential for organizations to grow in TA maturity. This factor isparticularly important for high-growth or niche industries where domainexpertise empowers more effective sourcing and engagement. Certainprehire assessment solutions are poised to facilitate this development withfeatures like administrator feedback, guidance and training, and skill- orindustry-specific tests or question sets.

Categories of Prehire Assessment SolutionsToday’s market offers a wide range of assessment solution categories tomeet the needs of different organizations and teams. Assessmentofferings can support a specific role or industry, leverage out-of-the-boxassessment suites, and / or incorporate custom assessment building tools.In addition to the capability offerings and alignment with specificorganizational objectives, each solution should also be assessed on therigor of its approach toward validity and compliance. To better understandthe range of options available, our research separated assessment formand function. Although we’ve decoupled these components to explain thesolutions market, they are interconnected and should be consideredholistically when selecting a provider.

Prehire Assessment Functions Prehire assessments can be used to evaluate a number of differentaspects of a candidate. Organizational preferences and role requirements

talent mobility and leveraging assessment technology to identifyopportunities for talent development and movement across theenterprise. Organizations that learn to optimize assessments forinternal mobility will change the narrative about how talent is nurturedand deployed, thus creating a culture that attracts talent.

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KEY POINT: The use ofadvanced technologicalcapabilities can deliver acompetitive advantage forTA functions.

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Prehire Assessment Solutions: Market Primer

often dictate the types of assessments that are leveraged. Our researchincluded the following assessment functions:

Personality. Measures an individual’s personality traits.•Behavioral. Measures how an individual will likely behave in certain•scenarios.Skills Validation. Measures proficiency with regard to specific job•skills.Capability. Measures enduring human capabilities and cognitive•ability as well as the capacity to apply both to particular contexts.Culture. Measures an individual’s ability to operate successfully•within a specific organizational context.

Organizations—particularly in specialized industries like technology orhealth care—are continuously looking for a way to verify resume and workexperience. Not surprisingly, our study revealed that skills validation is themost commonly available assessment function, with an average of 48percent of providers offering support across the four prehire assessmentforms.

Prehire Assessment FormsThe assessment forms are the methods to collect information. Anindividual assessment may consist of a single form or combine multipleforms to serve one or more purposes. The following assessment formswere explored in our survey:

Questionnaire. Standard question sets (e.g., multiple choice, free•response, true / false).Gamification. Game-based activities or challenges.•Simulation. Replication of work environments or scenarios.•Observation. Assessment of how a worker performs in an actual•job function.

According to our research, the most common assessment form continuesto be the traditional questionnaire, with an average of 61 percentavailability across the five functions. The most widely available categoryacross form and function is the culture questionnaire, with 68 percent ofproviders offering this type of assessment. Given that our High-ImpactTalent Acquisition Research has found that high-maturity TA teams are alsoassessing for values, fit, and potential—in addition to skills andcompetencies—this data point underscores that the market is able tomeet this need. At this stage, the standard questionnaire is the dominantmeans of assessing culture, but providers may start to build outcapabilities across the other forms, too.

ConclusionAs organizations continue to look for ways to deliver a competitiveadvantage in the search for talent, prehire assessments will become anincreasingly important tool to identify and retain top performers.Advanced data and analysis capabilities have the potential to be gamechangers for the TA function, tying performance and retention data backto assessment systems. When it comes to fully understanding business

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Prehire Assessment Solutions: Market Primer

and talent needs, highly mature TA teams are deeply integrated within HRand the organization. TA teams that leverage prehire assessment solutionscan provide the data and insights necessary to adapt strategies whenneeded and influence a shift in focus from filling a role to accessing theright talent for the organization.

Key TakeawaysAPrehire assessment solutions evaluate competencies,•knowledge, and / or behaviors, which can be used to hire forvalues, fit, and potential.Advanced technological capabilities are increasing the speed•and accuracy with which organizations are able to identify toptalent.The five factors of TA maturity may be leveraged to•understand the practices that are most predictive ofperformance and how they correlate to the use of certainassessment technologies.Organizations that learn to leverage assessment technology•can create a culture that attracts and retains talent, winningthe war on internal talent mobility.Prehire assessment solutions can be categorized by function•(what they measure) and form (how they measure).

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Prehire Assessment Solutions: Market Primer

Endnotes2019 Global Human Capital Trends: Leading the social enterprise—Reinvent with a human focus, Deloitte Consulting LLP and Deloitte1.Insights, 2019.2019 Global Human Capital Trends: Leading the social enterprise—Reinvent with a human focus, Deloitte Consulting LLP and Deloitte2.Insights, 2019.For more information on how to conduct a job analysis, see Defining Job Requirements for Employee Selection.3.To learn more about building a full-scale assessment strategy, reference Developing an Assessment Strategy: Choosing and Configuring4.Assessment Tools Checklist.The Talent Acquisition Maturity Model, Bersin, Deloitte Consulting, LLP / Robin Erickson and Denise Moulton, 2018.5.Six Key Insights to Put Talent Acquisition at the Center of Business Strategy and Execution, Bersin, Deloitte Consulting LLP / Robin Erickson6.and Denise Moulton, 2018.For a more detailed look at candidate relationship building, see Facilitating Engaging Recruiter Interactions and Prehire Assessment(s).7.The Talent Acquisition Maturity Model, Bersin, Deloitte Consulting, LLP / Robin Erickson and Denise Moulton, 2018.8.Talent Retention Report 2019, iHire, October 2019, https://www.ihire.com/employerlp/2019-talent-retention-report?p=y.9.Six Key Insights to Put Talent Acquisition at the Center of Business Strategy and Execution, Bersin, Deloitte Consulting LLP / Robin Erickson10.and Denise Moulton, 2018.

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Publication Date: January 28, 2020