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Good selection methods are critical to helping organizations limit the risks involved in hiring decisions. Hudson publishes its views on how organizations can improve their selection processes: A new light on selecting candidates.

The organization’s perspective

Organizations pay attention primarily to their own interests when looking at their selection processes. It is not just about having the right person in the right position, but also about maintaining or increasing performance, improving retention and increasing job satisfaction. To ensure that the “right person is in the right place”, organizations have to establish a selection process that has the highest possible reliability and predictive validity in order to guarantee that their hiring decision is indeed the right one.

Organizations look at the cost, but do not always see the real value

Research conducted by the Hudson R&D Centre on 254 companies of all sizes shows that companies often tend to opt for interviews and reference checking – drastically overestimating the predictive value of these rather cheap approaches – and much less frequently choose to use assessment tests like personality questionnaires, reasoning ability tests and simulation exercises; underestimating the predictive value of these instruments.

Very often, cost considerations play a major role in their approach. However, the potential cost implications of a wrong hire makes it very important to look for selection procedures that guarantee a better outcome in terms of the overall value of the procedure.

Pain reduction

Assessment tests can indeed reduce the ‘pain’ of a wrong hire. Statistical data show that the correlation between using the medicine Ibuprofen and pain reduction is 4 times smaller than the correlation between test scores and job success. Therefore, if taking medicine to reduce pain seems obvious, using assessment tests in the selection process should be evident as well.

The candidate experience

Organizations pay less attention to what candidates actually experience when they apply for a job. However, the war for talent and the scarcity of good applicants on the market has raised awareness of candidates’ concerns; how candidates experience the selection process, and how this process impacts candidates’ perception of the hiring organization.
The fact that the candidate experience during the selection process shows correlations of .30 to .45 with variables such as perceived efficiency, organizational attractiveness, recommendation intentions, offer acceptance intentions and product purchase intentions, is a major finding that should prompt all hiring managers to thoroughly examine the selection procedures they have in place.

Where an organization’s and candidate’s interests can meet each other

Research conducted worldwide clearly indicates that the attitude of candidates towards different types of selection tools is quite nuanced. Candidates keep a very open attitude towards every type of instrument, especially if the instrument is offered at face value because it gives jobseekers the sense that they will have an objective chance to show what they are capable of, and that the process will be fair for every potential candidate.
Although candidates are in favor of interviews, they are quite open to professional personality questionnaires and reasoning ability tests, and even more so to business simulation exercises. This clearly creates a situation in which organizations have the chance to develop solid and predictive selection procedures that are based on instruments with a high added value for both parties.

Research shows that both candidates and organizations value a professional and (cost-) efficient selection process, in which efficient on-line, job-relevant and fair (pre-) selection methods are used to sift out candidates that have little or no chance of being hired and to provide information for an open communication with applicants. Hudson uses the tremendous amount of experience it has built up to advise organizations on how to improve their selection processes accordingly.

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Hudson has more than 35 years of experience and is the undisputed market leader in the HR consultancy sector. Every day, the Hudson HR experts use all their specialist knowledge regarding the recruitment, interim management, development, coaching or compensation of employees to support our customers so they can achieve their ambitions.