How behavioural assessments can transform employee retention strategies

2:40 What should you be doing to improve employee retention?

Employee retention has become a critical focus for many organisations, especially considering the high costs and time investment associated with hiring. Losing an employee soon after hiring not only leads to financial losses but can also disrupt business operations. The desire to retain top talent is not new, but traditional methods like interviews may fall short of predicting employee longevity. This is where behavioural assessments come into play, offering a scientific and reliable way to measure the fit between a candidate and the role or organisation, ensuring better retention rates.

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The Problem of Employee Turnover

One of the most frustrating challenges for organisations is employee turnover. The hiring process itself is costly—organisations invest significant time, effort, and resources into finding the right talent. However, once hired, if the employee does not stay for a substantial period, it can be a significant setback. The long-term cost of frequent employee turnover is immense, affecting not just the bottom line but also the productivity and morale of the remaining staff.

Organisations, therefore, are increasingly focused on hiring employees who not only possess the necessary skills but also fit well enough to stay long term.

The concept of employee lifetime value comes into play here—balancing the quality of the hire with their potential longevity in the organisation. Essentially, businesses are not only asking "How good is this employee?" but also "How long will this employee stay?".

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Limitations of Interviews in Predicting Retention

While interviews remain the most popular tool for assessing candidates, they have clear limitations when it comes to predicting employee retention. Interviews can be somewhat effective in determining a candidate’s qualifications, but they provide little insight into how long that individual will stay with the company.

The main issue lies in the nature of interviews: candidates are naturally inclined to present themselves in the best possible light.

When asked whether they see themselves staying long-term, most candidates will respond affirmatively, regardless of their actual intentions. This is not necessarily dishonest—it’s simply the way interviews work. After all, no candidate wants to jeopardise their chances by admitting they might not stick around.

Unfortunately, being good at interviews does not correlate with the likelihood of staying in a role for a long period. While a candidate may excel in answering questions and demonstrating skills, retention is influenced by factors like organisational fit and long-term satisfaction—elements that are difficult, if not impossible, to measure in a traditional interview.

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The Role of Behavioural Assessments

This is where behavioural assessments come in as a powerful tool for organisations. Rather than relying solely on interviews, which only offer a partial picture of a candidate, behavioural assessments delve into the personality traits and behavioural tendencies that indicate how well a person will fit both the role and the organisation.

Every job role has an ideal personality profile. For instance, think about the characteristics of a successful salesperson. They are likely to be extroverted, industrious, and resilient. These traits not only help them excel in their job but also increase their job satisfaction and reduce their likelihood of leaving the role.

A candidate who lacks these traits might find the role stressful, unfulfilling, and ultimately unsustainable.

Similarly, organisations themselves have unique cultures and values. A person who does not align with the organisational culture may feel out of place, disengaged, and unsatisfied with their job, which can lead to early departure. Just as a role requires a specific behavioural fit, so too does the organisation. Employees who do not mesh with the company culture are less likely to feel loyal, engaged, or satisfied, making them more likely to leave.

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How Behavioural Assessments Work

Behavioural assessments offer a scientific approach to predicting both role fit and organisation fit. Unlike interviews, which rely heavily on the candidate’s ability to self-report, behavioural assessments measure specific characteristics that are critical for success in a particular role or organisation. These assessments allow hiring managers to:

Identify Key Traits: Offer easy access to qualified experts like business psychologists and psychometricians.
Measure Fit: Conduct validation research to ensure the tools are effective within the specific context of the organisation.
Predict Retention: Provide clear and ongoing communication post-sale, ensuring that the HR team is never in the dark.

By applying this method, companies gain a clearer picture of whether a candidate is likely to stay in the role long-term. This method moves beyond simply relying on what a candidate says during an interview, instead providing objective data on their behavioural tendencies.

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Advantages of Behavioural Assessments Over Interviews

One of the most significant advantages of behavioural assessments over traditional interviews is their ability to capture data that is more predictive of future behaviour. While interviews can highlight a candidate's skills and experiences, they are often less effective at gauging whether the individual will thrive in a particular environment over the long term.

With behavioural assessments, organisations can isolate the behaviours and traits that matter most for success in a specific role. These assessments provide insight into factors like:

Resilience: How well does the candidate handle stress and setbacks?
Industriousness: Does the individual have the drive and motivation to consistently perform at a high level?
Cultural Alignment: How well does the candidate's personality align with the company’s core values and culture?

These assessments also remove much of the subjectivity inherent in the interview process. While interviewers may inadvertently favour certain candidates based on biases or gut feelings, behavioural assessments offer a more objective analysis of a candidate's fit for the role and organisation.

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Enhancing Retention with Data-Driven Insights

When organisations integrate behavioural assessments into their hiring process, they are able to make more informed decisions based on data-driven insights. This approach allows companies to optimise their recruitment strategy by focusing not just on the immediate skillset of the candidate but on their potential for long-term retention.

In a competitive job market where turnover is costly and disruptive, behavioural assessments offer a reliable and scientific way to ensure that new hires are not only qualified but are also more likely to stay and contribute positively to the organisation over time.

In conclusion, while traditional interviews still have their place in the hiring process, they are not sufficient on their own to predict long-term employee retention. By incorporating behavioural assessments, organisations can significantly improve their ability to hire candidates who are both qualified and likely to remain with the company long-term, ultimately saving time, money, and resources.

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Final Thoughts

Organisations today are under immense pressure to retain talent, and the traditional methods of interviewing and gut instinct are no longer enough. Behavioural assessments offer a powerful, data-driven alternative, helping organisations hire employees who are more likely to stay engaged and loyal. In an era where employee retention is more important than ever, utilising behavioural assessments could be the key to ensuring the long-term success of your hiring strategy.

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FAQs

What is a behavioural assessment?

A behavioural assessment is a tool used to evaluate a candidate's personality traits, work preferences, and how they fit within a particular role or organisation. It measures key traits that can predict job performance and retention.

How do behavioural assessments improve retention?

By identifying whether a candidate’s personality and work style fit with the role and the organisation, behavioural assessments help predict how long they are likely to stay and thrive within the company.

Can behavioural assessments replace interviews?

No, but they can complement interviews by providing more data about the candidate’s fit for the role and the organisation. Together, these tools offer a more comprehensive view of the candidate.

What traits are typically measured in a behavioural assessment?

Traits such as resilience, industriousness, extroversion, cultural alignment, and stress tolerance are commonly measured, as they are often critical to job performance and satisfaction.

Are behavioural assessments suitable for all roles?

Yes, behavioural assessments can be tailored to any role by focusing on the specific traits and behaviours that are most important for success in that position.