Pre Employment Tests Can Avoid Bad hires

Business owners could avoid making bad hiring decisions by implementing pre employment tests, according to a new study.

A recent survey from SurePayroll found that three out of four business owners admitted to hiring at least one employee that they later regretted. On top of that, 12 percent of business owners indicated that the mistake resulted in a significant financial loss, or more than $10,000 per bad hire.

The survey concluded that many small business owners are overlooking steps to reduce the likelihood of a hiring mistake. For example, many who admitted to bad hiring decisions said they resulted from a failure to accurately assess an employee's personality, character or skill set.

SurePayroll attributes the growing trend of hiring mistakes to difficult economic times, which have placed a considerable number of highly competitive and eager job seekers into the market. President Michael Alter said the businesses the company talks to say they're seeing more people lying on their resumes or exaggerating skills to get a job.

“In a down economy, small business owners must be especially vigilant when they bring on new employees,” he told eWeek.

Alter said the best way to avoid making a bad hire is by conducting research during the pre employment phase. Employers should use proven, objective screening methods like background checks and pre employment tests.

"For small business owners, the psychological and economic strain of making a hiring mistake can be a massive burden on the company," he said. "What's more, these kinds of hiring mistakes can be reduced or avoided altogether by implementing proper precautionary measures. Investing in pre-employment screening services is worth the small upfront investment."

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