It’s self-evident that selecting people who are better at doing a job, whatever that job is, will have an effect on your bottom line. There’s also plenty of research that supports the idea that psychometric tests and questionnaires, amongst other assessment techniques, can give a significant boost to your ability to spot winners. But, how can you show the benefits in terms of hard cash and/or reduced staff turn-over?
A number of psychometric test publishers and occupational psychology firms have started to produce Return on Investment (ROI) calculators. These can be used to estimate the financial gains achieved by increasing the quality of hires, and also provide a guide to the likely reduction in staff turnover. If you want to know how they work, or would like to try putting your own figures through, try one of these:
- SHL group: http://www.shl.com/uk/results/roi-calculator/
- PreVisor: http://www.previsor.com/results/calculator
- Learn Purple: http://www.learnpurple.com/free_stuff/calculators/
- Mentis Consulting: http://www.mentis-consulting.com/roi.asp
You’ll also find a very readable and insightful article from Talent Q here: Introduction to Measuring the ROI of Assessment.