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The “Hidden” Cost of Resumes and What You Can Do About It

The “Hidden” Cost of Resumes and What You Can Do About It

Human resource costs can be reduced by replacing traditional resume screening with a pre-hiring assessment

Many businesses might not be fully aware of the underlying costs and implications of relying heavily on resumes during the recruitment process. While it’s common for a majority of decision-makers to prioritize resumes as their primary screening tool, this method can not only be costly but also may not yield the most accurate view of a candidate’s suitability for a role. Studies indicate that resumes don’t always provide an accurate representation of a candidate’s true abilities or their likely job performance.

So what are the real costs associated with using resumes, and if they aren’t the most effective and efficient method, what alternatives can businesses explore?

What Resumes Really Cost You

Considering that a poor hiring choice can cost a significant amount of the employee’s first-year salary, it’s also worth reflecting on the potential costs of relying solely on resumes. Here’s how resumes hurt your hiring budget:

Spending Time on Screening

Reviewing a single resume is quick, taking only a few seconds. However, going through hundreds can consume several hours. If a talent acquisition specialist earns $60,000 annually and dedicates 5% of their time to screening resumes, that equates to a $3,000 yearly expense. Is this truly an efficient allocation of their resources and funds?

Interviewing the Wrong Candidates

The process extends beyond just screening resumes. Allocating resources to advance candidates based solely on their resumes can lead to inefficiencies. When candidates progress to in-person interviews only to find out they’re not a good match for the role, it results in an unnecessary expenditure of both time and financial resources for the organization.

Passing on Great Candidates

While a candidate’s resume might not always capture their full potential, their actual performance on the job can be exceptional. This discrepancy represents an opportunity cost. By overlooking such individuals, organizations may later recognize gaps in the team’s skill set, realizing the value of the talents they previously bypassed.

Searching for an Alternative

Recently, cognitive ability and personality assessments have gained significant traction in the hiring process. These tests, commonly utilized in early recruitment stages, provide insights into a candidate’s strengths and weaknesses, aiding in evaluating their suitability for a position. By relying on these assessments, employers can make informed hiring decisions rooted in concrete data rather than mere assumptions. Let’s delve deeper into the efficacy of these testing methods.

Cognitive Ability Tests

Cognitive tests evaluate a candidate’s skills and capabilities. It’s essential to choose a test tailored to the specific requirements of the position you’re hiring for. This approach ensures a better prediction of a candidate’s real-world job performance. For instance, tests like verbal or abstract reasoning can gauge a candidate’s ability to process information and apply logic. Alternatively, practical exercises, such as in-tray tasks, simulate actual job situations. An example would be a receptionist tasked with responding to sample emails and organizing incoming work priorities.

Personality Tests

Personality tests assess distinct individual traits, aiding in evaluating a candidate’s suitability for a role. For instance, when hiring a customer support specialist, a candidate with a problem-solving mindset might be more desirable than one who prefers strict structures and struggles with unexpected challenges. While both candidates might possess the required knowledge, the ability to handle pressure and devise innovative solutions sets them apart. A personality test can provide insights into these attributes. 

Combining cognitive and personality tests in a single unified tool offers a comprehensive assessment, enhancing the accuracy of predicting job performance. Specifically, Bryq offers a unique assessment tool that is able to achieve this comprehensive evaluation in just 20 minutes, while ensuring a user-friendly experience.

Why Are Tests A Better Candidate Screening Method?

Unlike resumes, which rely on candidates’ self-reported achievements and experiences, tests provide an objective measure of an individual’s abilities and traits. Resumes can sometimes present information in a way that best suits the applicant’s narrative. In contrast, tests offer standardized metrics, ensuring that each candidate is evaluated based on consistent criteria.

Here are the main benefits of using cognitive and personality tests in your recruitment process:

Bias Reduction

When all candidates take the same test for a specific role, the hiring process is standardized, promoting fairness. Since these tests are typically administered online, evaluators only see the test results, ensuring no prior knowledge about the candidate influences the decision. Bryq has further enhanced the objectivity of the hiring process by introducing a blind screening tool.

Performance Improvement

Cognitive ability tests are reliable indicators of job performance. Incorporating them into your hiring process ensures more informed decisions. Furthermore, these tests can be tailored to evaluate specific skills relevant to the position in question. Instead of inferring qualities like time management from a candidate’s past experiences, you can directly assess them through targeted tests and base your decisions on concrete results.

Efficiency of Resources

During the interview stage, unqualified candidates will have already been filtered out, ensuring you only meet those aligned with the role’s requirements. The time and resources saved can then be redirected to vital tasks, such as identifying candidates who resonate with your company culture or enhancing your employer brand.

Turnover Reduction

A bad hire can be costly for both the company and the employee, who might feel discontented and consider leaving. By integrating personality tests to evaluate a candidate’s alignment with the role, the hiring process becomes more refined. Leveraging these assessments from the beginning increases the chances of a successful hire and increased retention in general.

In today’s competitive job market, the hiring process is more crucial than ever. Traditional methods, like relying solely on resumes are costly and have shown limitations in predicting a candidate’s true potential. The financial and operational implications of a poor hiring decision underscore the need for a more comprehensive approach. 

Today’s advanced tools, including cognitive and personality assessments, offer a clearer and more objective insight into a candidate’s fit for a role. Bryq’s assessment platform stands out in this area, efficiently evaluating both cognitive skills and personality aspects in a user-friendly manner. To understand the benefits of Bryq in the hiring process, we encourage you to schedule a free demo with our team!

Do you want to see how Talent Intelligence helps you create the Future of Work?

Book a meeting with our team today to find out!

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