The typically used recruiting process at most employers, resume screenings, phone screenings, and unstructured interviews are ineffective predictors of job performance because candidates are often screened based on subjective versus objective criteria. In fact, the use of such methods often results in 1 in 2 candidates ending up as poor-fit hires within 18 months of being hired.
Tests that are job-related, reliable, and valid predictors of job performance are objective and remove any human biased in the hiring process.
Other assessment methods such as unstructured interviews can be inconsistent and unfair because interviewers can ask different questions to different candidates and some of these questions may not even be job related. Tests, by contrast, are standardized and administered in the same way to all candidates. If they’re crafted according to strictly job-related criteria, they give everyone the same opportunity to succeed.
Tests can save you time if you use them at the appropriate places in your recruiting process. For example, you can use a short 10-minute test to test every candidate that applies for your job. You can then focus your resume and phone screening on candidates that perform well on this test. After your resume and phone screening, you can then re-asses the shortlisted candidates through a longer 30-minute test and only invite candidates that perform well on this test to an interview.
Tests that are job-related and reliable can be predictive of the future job performance of a hired employee. For example, the correlation between unstructured interviews and job performance has been shown to be 0.38, whereas for General Mental Ability (GMA) tests, it’s been shown to be 0.51. Therefore, using tests as a part of your recruiting process helps hire better employees.