What Is Skill Inventory? Pros and Cons of Pre-Employment Skill Testing

What Is Skill Inventory? Pros and Cons of Pre-Employment Skill Testing

Sugandha SrivastavaNovember 16th, 20236 min read

Having the right employees is paramount to a company's success, as it hinges on the assumption that these employees possess the necessary skills and qualities. High-caliber employees can serve as the cornerstone of a prosperous company, while poor hires can potentially lead to its downfall. Selecting the wrong candidates can create substantial challenges for an organization, underscoring the importance of a careful and thorough hiring process.

To ensure that your company attracts the best candidates, you must take extra precautions during the recruitment process. It's imperative to identify individuals who can perform their roles exceptionally well. This is where pre-employment skill testing comes into play.

Pre-employment skill testing is an increasingly prevalent strategy adopted by hiring managers. It has consistently demonstrated its efficacy in enhancing hiring accuracy, reducing hiring-related costs, and expediting the time it takes to fill positions. According to a survey conducted by the American Management Association, nearly 90 percent of companies that employ pre-employment testing indicate that they are unlikely to hire job seekers whose test results reveal deficiencies in fundamental skills. This underscores the value of pre-employment skill testing in selecting candidates who are best suited for the job.

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What is Skill Inventory?

A skills inventory is a resource employed by Human Resources departments for the purpose of monitoring and cataloging the skills and capabilities possessed by their workforce. It entails creating a detailed record of the skills and abilities of each employee, serving the purpose of pinpointing their strengths and areas for improvement. Additionally, it aids in aligning employees with suitable job roles, recognizing training requirements, and crafting career development plans.

Purpose of Skill Inventory

A skills inventory serves as a means to recognize and monitor the skills and competencies of an individual or a collective group. It aids in evaluating both strengths and weaknesses, pinpointing areas where enhancement is needed. Furthermore, it can be utilized to uncover potential training and growth prospects, and to align individuals with roles or responsibilities that align with their specific skill sets and capabilities.

10 Reasons For Pre-Employment Skill Testing in Hiring

For those who may have reservations about incorporating pre-employment skill testing into their hiring process, here are ten compelling reasons that might persuade you:

  1. By utilizing pre-employment skill testing, you can effectively weed out as much as 50 percent of unqualified applicants during the initial screening phase, substantially reducing the risk of making a bad hire.
  2. This approach can cut down up to 90 percent of the time spent on extraneous elements in the hiring process, which directly contributes to the cost-saving aspect of recruitment.
  3. Research indicates a remarkable 75 percent increase in satisfaction among hiring managers who employ pre-employment skill testing.
  4. Implementing well-designed assessments can potentially double your success rate in hiring the right candidates for your organization.
  5. Streamlining the hiring process by eliminating time-consuming tasks allows you and your team to focus on more critical activities, thus enhancing overall productivity.
  6. Utilizing pre-employment skill testing can significantly enhance the probability of selecting high-quality candidates for your job openings.
  7. Pre-employment assessments aid in achieving the ideal job fit between applicants and the positions they're being hired for. Matching the right individual to the right job results in increased employee satisfaction, heightened productivity, and reduced employee turnover, which can be a costly issue for any company.
  8. While pre-hire assessments might occasionally face legal challenges, companies can mitigate their legal risk by ensuring the validity and reliability of these tests, avoiding disparate impacts on minority or protected groups, and consistently applying tests to all candidates.
  9. Are pre-hire skill testing unfair to candidates? No. Pre-hire skill testing offers all candidates an equal opportunity to demonstrate their qualifications beyond their resumes through standardized tests, enabling job seekers to find their "perfect job" more effectively.
  10. Pre-employment Skill Testing and Screening Software minimizes the influence of personal bias and subjective opinions in the hiring process, promoting more objective decision-making. Making hiring decisions based on scientific test results can offer protection against potential lawsuits should an unhappy applicant file a claim.
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Pros And Cons of Pre-Employment Skill Testing

The debate surrounding the effectiveness of pre-employment skill testing in finding better candidates is a valid one. Hiring someone without testing does not guarantee that they are not the best candidate, and similarly, conducting tests does not always guarantee that the candidate selected is definitively the best one.

There are multiple facets to consider in this context. Pre-employment skill testing serves as a valuable tool for gaining deeper insights into candidates. It helps in evaluating their applied skills, communication abilities, and various other relevant attributes. Through a series of well-crafted questions and assessments, you can construct a more comprehensive profile of each candidate. This additional information can provide you with a higher level of confidence in your hiring decision.

On the other hand, if you forego these assessments, you might have less information about the candidate, which can be perceived as a risk. Without testing, you may not have a complete understanding of their abilities and characteristics, making it harder to make a fully informed decision.

Final Thoughts

In essence, pre-employment skill testing is not a definitive answer to the question of who the best candidate is, but it significantly enhances your ability to make an informed decision. It provides valuable data that can help you gauge a candidate's suitability for a specific role and reduce the uncertainty associated with hiring. Ultimately, the choice of whether to use pre-employment skill testing depends on your organization's specific needs, the nature of the job, and your confidence in your hiring process.

Essential "skills" or "competencies" are typically consistent across various job roles. Attributes such as attention to detail, time management, cognitive thinking, problem-solving, and learning agility are universally valuable in the business world. However, the selection of assessments (tests) should be tailored to save time and money during the screening process, ultimately identifying candidates who are an excellent fit for the specific job.

Pre-employment skill testing offers distinct advantages to the hiring company. It enables the recruitment of individuals who not only align with the job requirements but also fit well within the organizational culture. Additionally, these tests prove to be cost-effective and efficient. They typically require only 20-30 minutes for completion, making them a time-efficient option. If you aim to secure the best candidates for your job openings, incorporating pre-employment testing into your hiring process is a logical choice.

Consider exploring Intervue's pre-employment testing software, designed for assessing candidate skills. It offers a wide range of over 200 ready-to-use skill tests and the flexibility to create custom tests. Intervue's online testing software streamlines the hiring process, allowing you to identify high-quality candidates while minimizing administrative complexities associated with hiring.

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