42% of companies do not assess their employees’ talents: SHRM-MeritTrac report

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Companies not assess employees’ talents: SHRM - MeritTrac report

• 45% of companies that use assessments, validate impact using of data SHRM

Bangalore, 12 October, 2016 – MeritTrac Services Pvt. Ltd., in collaboration with the Society for Human Resource Management (SHRM) has released a report on the talent assessment in India at SHRM India Annual Conference & Exposition 2016 recently.
The research, conducted through a survey on 131 organizations across the country, was meant to evaluate usage of scientific assessment during recruitment and workforce development. The findings reveal the state of adoption of talent assessments and its reasons clearly suggesting that there is tremendous scope for introducing practices that can enhance the available talent quality and its pipeline.

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Despite the large number of qualified candidates in the working age group in the country, the employability rates are still tottering at the 25% mark. This calls for the need for businesses to understand who they are hiring and to be more vigilant regarding their fitment to job as well as to the organizational culture.

The objectives of SHRM-MeritTrac study on the talent assessment were:

• To provide insights into testing and assessment practices in India in the Talent Acquisition and Talent Management space
• To provide insights on challenges organizations face in the usage of online assessments/testing, with the intent to develop better assessment tools as per organizational needs
The research was conducted through a 19 item survey administered on a highly representative set of organizations that constituted participation from various industries, employee numbers and revenue brackets. The research was administered from August to September 2016. The key research findings were as follows:
• 42% of respondents do not use any sort of assessment tools during the employee’s lifecycle
• Majority of organizations (34%) use assessment tools for managerial/supervisory jobs. Only 23% of organizations use it for entry level hiring.
• Traditional set of tests top the usage graph even today. Skills, abilities, personality or behavior tests account for maximum usage (26%) across organizations, followed by interviews (20%) as a close second.
• 55% of the organizations do not objectively measure the impact of the assessment tools on business out of which 25% do not measure the impact at all. Only 45% validate this impact through usage of data

Technology or candidate convenience has not been highlighted as a challenge in the adoption of assessments by organizations. Commenting on the usage of scientific assessment tools Achal Khanna, CEO, SHRM India, said: “The world today is no longer the one of yesteryears that we remember. Much has changed in the way businesses are conducted and the world itself is in a state of constant change. It, therefore, would be counterproductive for organizations to remain stuck in the best practices of say 2005 or 2010. Better and innovative metrics to measure employee performance are evolving, and organizations must be bold enough to change with the changing times.”



“A lot has changed in the industry in the past twenty years. This has resulted in the increasing importance in assessing talent to ensure that the right candidate is hired. This research was borne out of this idea to understand the trend in adoption of tools to assess talents and the challenges organizations face. It was pleasing to see the positive responses to the report from the key stakeholders during the SHRM conference,” said Ravi Panchanadan, Chief Executive Officer, MeritTrac Services.

The study also revealed that 17% of the respondents feel that cost considerations and inability to justify ROI of the tool top the list of challenges when it comes to adoption of assessment tools for hiring and talent management. This gives the indication that for many organizations that do not leverage assessments, cost is a key measurement matrix for hiring decision. Due to lack of measurement of ROI, assessments are often looked upon as costs. This is followed by lack of management buy-in (12%) and perception of it taking more time and energy (12%).

With attrition still at its high, organization have still not been able to evaluate the Loss To Company (LTC) due to wrong hires. Anticipating the future, Ravi says “The next big thing in assessments is expected to be the adoption of social media profiling tools for candidate screening.”
The study also point out that 81% of the respondents already use it or are likely to, in the near future. Another 80% of the respondents opined about the willingness to use online simulations as part of assessment centers or standalone. However, organizations are yet to be completely comfortable with going mobile with their assessments and gamification for training purposes is also still to be fully adopted.
Although assessments continue to gain popularity, uptake is still limited due to lack of understanding about the value-add that it brings to the table. Organizations are unaware of the benefits of using assessment tools and the amount of resources that can be saved by employing the right assessments to hire the right candidate.

About MeritTrac

MeritTrac is India’s leading Testing & Assessment services company. MeritTrac provides innovative assessment services to leading Corporates, Public Sector Units, Government Organizations and Educational Institutions. MeritTrac is a 100% subsidiary of Manipal Global Education (MaGE) which is a highly rated education service provider. Since its inception in the year 2000-2001, MeritTrac has been developing and administering tests for over 400 organizations supporting them in assessing Knowledge, Skills, Abilities, and Personality & Behaviour. All MeritTrac tests and assessments are designed for easy understanding of non-native speakers of English. They feature simple, easy to understand reports which do not require expert intervention for interpretation. Snapshot reports enable quick on-the-spot selection/development decisions. MeritTrac’s assessments are delivered using a right mix of technology coupled with robust and certified testing processes. The scientific test development and delivery capability allows MeritTrac to offer Industry best-in-class reliability, validity, and quality for talent measurement.

About SHRM

SHRM India provides a platform for thought leadership, sharing of best practices and professional networking within the Indian and global HR communities in order to take
the profession higher through continuous and collaborative learning. It is a one-stop shop and the go-to resource for solutions and services to handle all people-management challenges With more than 285,000 members globally, membership is truly a unique offering that provides rich content through comprehensive online resources on both www.shrm.org/india and www.shrm.org. This huge repository of articles, research papers, case studies and related material on every aspect of HR within the Indian and global contexts constitutes the most current and comprehensive body of knowledge in HR. Supported by a bank of over 50 subject matter experts and internal expertise, the SHRM India Knowledge Center offers cutting-edge resources, across all the key and emerging HR disciplines. These include thought leadership, advisory panels, tools and templates, virtual events, forum and research.

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