Saving on talent management with reliable assessments

In today's job market, attracting, developing, and retaining talent is key. Talent management is essential to control costs and maximize employee potential. Reliable tests and assessments play a crucial role in this process. They not only help you make better decisions but also save on significant cost drivers. How? We explain in this blog.

The costs of poor decisions in talent management

A bad decision in attracting or developing talent often costs companies much more than they realize. These costs include not only recruitment expenses but also productivity losses, training costs, and turnover. Research shows that a bad hire can cost up to 150% of the employee’s annual salary.

How assessments improve talent management

1. More effective talent recruitment

Using reliable assessments provides objective insights into candidates’ qualities. This helps you make better-informed decisions, leading to:

• Fewer mismatches and lower turnover costs.
• Faster and more efficient hiring processes.
• Higher satisfaction among new hires.

2. Improved team dynamics

Personality analyses, such as Everything DiSC, offer insights into how employees collaborate. This enables you to create better-functioning teams, resulting in:

• Increased productivity.
• Fewer conflicts.
• A more positive work environment.

3. Targeted talent development

Assessments help you identify areas with growth potential. This allows for targeted development programs, which result in:

• Lower training costs.
• Greater employee engagement.
• Improved internal career growth opportunities.

4. Reduced absenteeism

Tools like stress profiles can identify burnout risks early. By intervening in time, you can prevent absenteeism and the high costs associated with it.

Concrete figures: A practical example

Imagine an organization with 250 employees experiencing an annual turnover of 10%, with 5% due to poor hires. With an average annual salary of €50,000 and a loss of €15,000 per poor match, the annual cost is €180,000. By using reliable assessments, this can be reduced to €90,000. The cost of assessments (€10,800 per year) results in annual savings of €79,200.

The value of quality tools

Choosing high-quality tests and assessments is essential. Cheap tools often lack scientific backing, making their results unreliable. Opt for proven methods such as Everything DiSC or PXT Select, which provide consistent and valid insights.

How to integrate assessments into talent management

Want to use assessments effectively in your organization? Follow these steps:

• Define clear goals: Do you want to reduce turnover, improve collaboration, or develop talent?
• Choose the right tools that fit your organization.
• Provide training on interpreting and applying results.
• Monitor impact and evaluate regularly.

Conclusion

Reliable tests and assessments are a valuable investment in talent management. They not only help you save costs but also improve the quality of decision-making, collaboration, and talent development. Want to discover how your organization can benefit? Contact us and try one of our assessments.

Making the right choices today saves thousands of euros tomorrow.