Client Industry:
Programming
What we did for the client
Over an 18-month collaboration, we provided psychological assessment services for recruitment. Each month, the client supplied a set number of candidates sourced through various channels (job ads, referrals, headhunting) who met their criteria for expertise and experience.
At the start of the collaboration, we defined the profile of the “ideal candidate” for each position, emphasizing the specific work-related and psychological competencies required to successfully perform the job. The psychological assessment included psychological testing and an interview with a psychologist.
For each assessed candidate, we prepared a report detailing the results of the psychological assessment, aligned with job requirements and the client’s expectations. The reports offered insights into the candidate’s professional strengths and weaknesses, alignment with the ideal candidate profile, and recommendations for managing the candidate if hired.
What we measured
To evaluate the effectiveness of the process, we tracked three indicators monthly:
- Indicator A: Number of candidates sent for testing – candidates who underwent psychological assessment.
- Indicator B: Number of candidates hired – candidates from Indicator A who signed an employment contract with the client.
- Indicator C: Number of wrong hires – candidates from Indicator B who left the company within six months due to a mismatch with job tasks or company culture.
Results
The number of candidates sent for assessment varied monthly, depending on the number of candidates sourced. Although the number of hires wasn’t directly tied to Indicator A, we observed a steady decrease in wrong hires over time. After several months, wrong hires significantly declined. This improvement resulted from a clearer definition of the client’s needs and expectations through intensive communication and refinement of the ideal candidate profile.
Financial projection
The current number of wrong hires is 15, while without psychological testing, our projection (based on the first seven months) estimated this number would be 27. During that initial period, we worked on refining the ideal candidate profile by accurately defining the required work-related and psychological competencies.
We considered that each wrong hire stayed between 1 and 6 months, with an average duration of 3 months, and the client’s average gross salary of €3,528.09.
- Costs with psychological testing: €158,764.05
- Costs without psychological testing: €285,775.29
Thanks to psychological testing, the client saved €127,011.24, which represents 1.72% of their annual revenue, with a potential savings range between €107,705.53 and €146,316.95, depending on variations.
Note: We acknowledge that the calculation is not entirely precise due to numerous external and internal factors influencing the measured components. However, we made every effort to provide the most reliable overall picture and guidelines possible.
