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Financial Planning > Tax Planning > Tax Loss Harvesting

Finding Better Employees

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For the first time, in the 2005 Study the majority of firms indicated that they use some form of standardized testing to evaluate new employee candidates. More firms were using each form of testing in 2004 than they did in 2003–psychometric testing, technical skills testing, and the most popular, with over 40% of firms using it, personality profiling. But an interesting sub-trend is shown in the chart above: while larger firms are less likely to do no testing at all, they are much more likely to test for technical skills, and to a lesser degree, psychometrics, than personality profiles. These firms are finding that a valid and reliable psychometric assessment tool can significantly offset the loss of productivity, lost time training, and a loss of momentum in a business due to key employees leaving and needing to be replaced. When psychometric tools are used in conjunction with interviews, background checks, ability testing, interest testing, and job matching, a more complete picture of a prospective employee emerges. This process of thoroughly evaluating candidates can greatly increase the likelihood of a good hire.