Survey
Table of Contents
About EmployTest
EmployTest, established in 2006, has become a leading force in pre-employment testing, collaborating with over 6,000 clients, ranging from corporate entities to non-profits and government organizations. Our influence extends across every U.S. state, Canadian province, and spans 17 countries on 6 continents.
Through our assessment platforms, we conduct over 60,000 tests annually, offering a diverse range of validated tests tailored to industry needs. We’ve forged partnerships with top test development companies, providing three distinct test platform options that cater to industry, location, size, and specific topics — ensuring a customized yet standardized approach to pre-employment assessments.
Our commitment revolves around two key objectives. Firstly, we empower Human Resources teams and Hiring Managers with invaluable insights to make informed hiring decisions — guiding clients in selecting appropriate tests, administering them, and aiding in the interpretation of scores throughout the hiring process. Secondly, we provide job applicants with a platform to showcase their skills, abilities, aptitude, and behavioral traits, allowing for a comprehensive evaluation beyond traditional metrics like education and work experience.
By emphasizing actual job-related capabilities through testing, we contribute to fostering diversity based on skills and abilities rather than mere credentials. EmployTest stands as your dedicated partner in navigating the complexities of the hiring process, ensuring smarter and more effective recruitment strategies.
To learn more about our company, visit EmployTest.com.
Executive Summary
During periods of talent scarcity and high attrition, precise skills-matching and job-fit assessments have become critical for effective hiring. This report summarizes the findings of a 2023 survey of recruiters and HR team members regarding their pre-employment testing practices and challenges.
Key findings indicate that a majority of organizations (84%) already utilize some form of pre-employment testing within mid-late stages of their recruiting process, with the results influencing anywhere from 33% to 67% of the final hiring decisions.
Despite proven benefits of assessments, restrictive budgets remain a barrier for wider adoption. Over 60% of respondents spend under $1,000 annually on pre-employment testing tools and services.
At the same time, the top reported hiring challenges are scarce applicants with required hard skills and soft skills. As competition mounts in the battle for talent, organizations that invest in testing to address candidate shortcomings early on will gain long-term savings in time, resources, and turnover costs.
Looking ahead at 2024, this report spotlights two key trends to expect. First, optimized pre-employment tests that cater to specific job competencies will play a more influential role in data-backed hiring decisions. Second, Artificial Intelligence-driven recruiting is poised to grow as more companies recognize AI’s potential to enhance sourcing, screening, and shortlisting qualified candidates amid applicant scarcity.
By personalizing test selection and practicing evidence-based hiring supported by AI talent analytics, HR teams can make smart recruiting decisions even with limited resources. The following sections distill the survey findings and provide actionable recommendations for assessing and validating applicants’ job-fit as efficiently and objectively as possible during 2024’s ultra-competitive hiring climate.
Introduction
The 2024 Recruiting Trends Survey was conducted by EmployTest, distributed to HR professionals across the US working in organizations with employee counts ranging from less than 100 to 2,500. The goal was to benchmark best practices for quality hiring and utilize the data to provide actionable recommendations for recruiters and hiring managers.
With today’s competitive labor market, hiring top talent poses multiple challenges that have intensified in recent years. Using advanced pre-employment tests can help address many of these obstacles through validated skills assessments. This survey was developed to gain quantified insights into the use of testing and uncover remaining barriers to adoption.
Understanding how organizations currently leverage tests, their influence in the process, timing of administration, and impact on key hiring metrics provides a snapshot into the evolving role and value of pre-employment assessments. With intelligent tools like AI also continuing adoption, having current statistics will be invaluable for recruiters looking to enhance their talent acquisition strategy in 2024.
Survey Findings
Use of Pre-employment Tests
Pre-employment testing has become a standard part of the hiring process for most organizations.
use testing
Based on the survey, 84% of respondents currently use some form of skills testing with candidates. Only 16% of companies do not utilize any pre-hire assessments.
Reasons for Not Using Pre-employment Tests
With the majority of businesses leveraging testing, it begs the question: why do some still avoid adopting this best practice? The survey uncovered the top reasons why the 16% of recruiters who skip skills assessments do so:
33% — Too few applicants meet job requirements: for more specialized roles or smaller companies, the perception is there would not be enough candidates to justify the cost.
33% — Previously used unreliable tests: poor experiences with low-quality or inaccurate tests in the past have led to reluctance.
17% — Cost of tests: budget constraints, with concerns over the expense of quality validated assessments.
17% — Top management does not allow: a lack of buy-in from key decision makers blocks adoption at some organizations.
2024 Hiring Challenges
The survey asked participants to rate major hiring obstacles on a 1–5 scale, with 5 being extremely challenging.
The most significant pain point for HR managers is making timely hiring decisions — rated a concerning 3.5 average, edging out “Confidence in Applicants’ Skills” and “Recruiting Costs,” each rated 3.4. While low applicant volume presents its own difficulties, the most severe repercussions were associated with delayed decision-making.
Budgeting for Testing
The data indicates the vast majority of companies utilizing pre-employment tests invest a modest budget toward their assessment programs.
Nearly two-thirds spend less than $1,000 annually, suggesting they use affordable yet effective evaluations — likely general assessments that screen across broad work-readiness competencies. About 30% of businesses earmark between $1,000–$5,000 toward skills assessments each year, administering numerous role-specific tests to gauge proficiency in specialized skillsets. A small but noteworthy 5% allocate over $5,000 a year — an enterprise-level investment often involving custom simulations based on proprietary in-house workflows.
Impact of Testing on Hiring Decisions
The survey asked respondents to quantify how significantly skills assessments influence their overall candidate selection process.
33–67% of decision
For the majority of companies, pre-employment evaluations play a moderate to major role in determining final hiring choices, confirming their vital value in talent acquisition. A telling 13% indicated assessments more than halfway or fully dictate hiring selections — aligning with best practices, as validated skills data should surface the most qualified applicants.
Stages of Administering Pre-employment Tests
The data indicates companies utilize pre-employment tests at the following stages of the hiring process.
mid-process
The majority (71%) deliver skills assessments during the interviewing pipeline after resumes have been screened. About one-fifth (21%) apply testing after interviews conclude to validate capabilities before extending offers. Less than one-tenth (8%) assess candidates earlier, before human interaction.
AI in Recruiting
The survey data reveals the following viewpoints around adoption of AI tools among recruiters.
While 29% use of AI indicates steady adoption, the majority have not integrated AI-powered recruiting automation. Of non-adopters, 38% remain open but likely desire more proven use cases before buying in. However, one-third show skepticism and some doubt it will impact talent acquisition. As AI mainstreams over the next few years, positive return on investment by current adopters may overcome skepticism.
Discussion
Reading Between the Numbers
Hiring Challenges
Recruiters say the slow pace of hiring decisions is their primary challenge — even more so than confidence in applicants’ skills, low applicant volume, or recruiting costs.
Budget
Most companies spend under $1,000 annually on pre-employment tests. A smaller percentage budgets more than $5,000, showing commitment to customized assessments for their competitive hiring environment.
Impact on Testing Decisions
Test scores significantly influence hiring decisions for most companies. While tests strongly inform, they don’t solely determine outcomes in many organizations, and a small fraction give assessments substantial weight in decision-making.
Stages When Tests Are Administered
Most recruiters use skills assessment during interviews, while a smaller number use tests after interviews to confirm abilities before job offers. A much smaller number assess candidates before any human contact.
AI in Recruiting
AI use is growing, but most haven’t adopted it due to needing more proven cases. Skepticism exists. Success in efficiency and candidate quality may convince the unsure, which shows potential for AI in the future.
Comparison with Existing Literature
A SHRM survey found that 78% of HR professionals say the quality of their organization’s hires has improved due to their use of pre-employment assessments.
A report from Talent Board reveals that pre-employment assessments are highly valued among hiring managers. Employers test for a range of competencies and use assessments for multiple strategic purposes:
Impact of Company Size on Recruiting Practices
Small Organizations
For small organizations, each hire is critical. A single misstep in recruitment can disproportionately impact operations and team dynamics. With limited budgets and less room for error, the cost of hiring mistakes can be huge — not just financially, but also in terms of productivity and morale.
Pre-employment testing becomes a strategic tool, allowing these companies to better predict candidate success. By evaluating core competencies and job-specific skills upfront, small organizations can make more informed decisions, maximizing the likelihood of a good fit and long-term retention.
Midsize & Larger Organizations
Midsize and larger organizations often face a flood of applicants, making the sifting process challenging and resource-intensive, even when using applicant tracking systems (ATS).
Pre-employment testing helps to efficiently filter the candidate pool, reducing time to hire. Tests objectively identify candidates who meet the specified qualifications, streamlining the hiring pipeline so the vast number of applications is distilled down to the most capable — protecting the quality of new hires.
Comparison Ratings & Unique Value Proposition
4.7 / 5
EmployTest has received an exceptional rating of 4.7 stars out of 5 on Capterra’s Pre-Employment Testing Software review, surpassing Testgorilla, TestDome, and HR Avatar. “Ease of Use” and “Customer Service” are the reasons EmployTest stands out. While there are two providers with higher ratings than EmployTest, their services come at a much higher cost.
EmployTest is dedicated to offering reliable, budget-friendly, and flexible assessment services while ensuring top-notch quality — empowering HR teams with high-quality validated assessments and test customization options unlike any in the industry.
EmployTest offers valuable resources to assist HR teams in creating the business case to upper management for the use of pre-employment testing, including an ROI Calculator, planning tools, and free test samples.
Pre-employment Testing & AI: Projected Impact on Hiring
The survey statistics reveal meaningful adoption trajectories for pre-employment testing and AI that may soon position both solutions as talent acquisition powerhouses.
A majority of companies now use test results to make up to 67% of hiring decisions. Tests effectively predict job performance beyond just resumes — as more organizations realize these benefits, reliance on testing will keep increasing. Also, 70% give tests during interviews to see skills in action, revealing abilities beyond qualifications on paper.
Almost 30% now use AI to streamline hiring through data and automation. Many are hesitant about AI despite the promise of efficiency, but if early adopters see tangible benefits, widespread adoption may happen quickly. Assessments and AI analytics seem poised to drive hiring — but selling skeptical teams requires proof that these innovations optimize hiring in real business settings. The data signals that future is coming soon.
Implications for HR Practice
The 2024 Recruiting Trends survey findings suggest several tangible takeaways for HR departments seeking to improve talent acquisition results.
Efficiently Allocate Testing Budgets
To make the most of a limited budget allocated for pre-employment tests, it is essential for hiring managers to use their resources effectively — incorporating a wide selection of pre-employment tests at the appropriate stages of the hiring process.
Test Before You Interview
While multi-stage testing offers comprehensive evaluation, initial assessments through pre-employment tests aid in objectively screening candidates before face-to-face interviews. This approach saves time and enables HR managers to objectively compare candidates.
Sell Hiring Managers on the Benefits of Testing
Educate hiring managers on the significance of tests, which often constitute 1/3 to 2/3 of hiring decisions. Pre-employment tests assess who can perform the job, not just those with experience or education credentials — managers who solely rely on work history may overlook hidden talent.
Engage with Previous Applicants
Insufficient applicants remain a key challenge. Reconnect with past candidates to target them for current job openings — previous applicants are more inclined to reapply, especially if they experienced a positive hiring process.
Experiment with AI on a Trial Basis
While some are skeptical about AI in hiring, many have already adopted it and are considering expanding its use. Test low-cost AI solutions in small pilot programs initially — if successful, scale up; if not, the investment is minimal.
Conclusion
The findings of the 2024 Recruiting Trends Survey offer valuable insights into the current state of pre-employment testing and its impact on hiring decisions. The widespread adoption of pre-employment testing highlights its effectiveness in addressing hiring challenges and improving talent acquisition strategies.
However, some organizations face barriers such as cost concerns and unreliable tests. Educating stakeholders on the value of pre-employment testing can encourage greater adoption and enhance talent acquisition outcomes.
AI tools are gaining traction in recruiting, and while many recruiters remain skeptical about their impact, they are likely to enhance efficiency and data analytics in the future.
Pre-employment testing plays a significant role in making timely hiring decisions by providing objective and reliable data. Administering tests earlier in the recruitment process can also be beneficial in identifying qualified candidates who might otherwise be overlooked.
To meet the growing demands of recruiting, choose a pre-employment testing partner that can help streamline the hiring process through high-quality and validated assessments. By investing in a reliable pre-employment testing partner, businesses can improve their recruitment efforts and make informed hiring decisions.
Source: EmployTest 2024 Recruiting Trends Survey — “What to Expect From Pre-Employment Testing in 2024.” To learn more about the services and products offered by EmployTest, visit EmployTest.com or follow EmployTest on social media.