There are great candidates looking for work but how can you differentiate them from average candidates?
Tony Alessandra, founder and chairman of Assessments 24x7, spoke with attendees of the Dave Yoho Associates’ 2022 Growth Mastery Summit last fall about how to use the popular DiSC assessment to avoid hiring the wrong candidate for your construction company. Alessandra has more than 40 years' experience in business, marketing and public speaking, and is a prolific author, with 27 books translated into over 50 foreign language editions.
How much does the wrong hire really cost?
Employee turnover costs a company time and money. According to Alessandra, in a 60-day period, the total cost of an incorrect salesperson hire—including commissions—is $38,000.
“Factor this over an entire year,” he said, “and you will understand how critical a proper hiring methodology is.”
Why doesn’t the traditional method of hiring work as well?
Alessandra said that traditional interviews have a 14% success rate in identifying the correct people for a role—that’s a one-in-seven chance of hiring the right person.
“Interviewees are seeking to make the interviewer like them,” he said. “And most resumes are like balance sheets without the debits.”
Many interviewers make up their minds to hire or not within the first five minutes of an interview, based on their “gut.” But Alessandra said there is a better way to make the decision:
1. Benchmark selection and hiring strategies
To hire both for your company’s needs and a candidate’s strengths, Alessandra holds that you need to replace guesswork with insights.
To do this, create a statistical analysis of your workforce using online assessments, such as the DiSC assessment. This will help you differentiate between high and low performers and begin to understand the core differences between the two.
Developing this benchmark also gives a starting point for future candidate selections. Alessandra said this data can reveal key qualities and job responsibilities to be included in job listings to attract the right candidates.
He also notes the importance of supplementing assessment data with job experience, education, references, interview results and aptitude information, so you gain a full picture of a candidate in addition to what the assessment shows.
2. Use independently tested assessments to reduce risk
Independently tested accuracy of an online assessment is particularly important, according to Alessandra, because it ensures the trust and confidence of assessment users. It ensures the scientific accuracy is safeguarded and that results are accurate.
Alessandra used Dave Yoho Associates’ DiSC assessment as an example, pointing out that it has been certified by the Assessment Standards Institute, an organization that works to promote the effective use of tests and assessments through the development of industry standards.
3. Implement assessments as a regular part of every interview
As a business owner or leader, you need to identify candidates with high probability of becoming top performers and minimize the risk of hiring poor performers. Assessments point you in the right direction and, according to Alessandra, help expand the applicant pool to include candidates who may have limited experience directly related to the role, but who have a high probability of success.
Identifying these “hidden gems” early in the process, Alessandra says, reduces overall turnover and helps correctly align individuals with the proper training and management responsibilities.