Eric Sydell, PhD, is Executive Vice President of Innovation at Modern Hire and the author of the book, Decoding Talent.
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As the Great Resignation continues, 4.3 million people quit their jobs in August. That’s equivalent to nearly 3% of the workforce who may be seeking out new opportunities. But while companies process higher volumes of applicants than ever before, a growing number of candidates are simply dropping out of the application process. This so-called candidate dropout dilemma remains a perennial source of stress for almost any hiring team.
As organizations work to keep applicants in the pipeline, what impact do lengthy assessments and interview timelines have in the long run? By reinventing the hiring process, HR professionals can better understand dropout behavior, address concerns when dropout happens and change the candidate experience for the better.
Does Assessment Length Directly Impact Dropout Rates?
HR practitioners tend to assume a tedious application process is behind most dropouts, but that’s not usually the case. Although research on the topic is limited, applicant dropout rates can be analyzed and understood just like any other aspect of hiring.
A peer-reviewed study we published in 2017, based on hundreds of thousands of pre-hire assessments, shows that assessment length is not a predictor of completion rates. In fact, shortening an assessment by 15 minutes only increases completion rates by a mere 1-2%. Additionally, our data shows that as many as 10% of candidates opt out of the job application process within the first couple of pages — regardless of the length of the assessment. This casts doubt on the assumption that longer assessments (or surveys) lead to greater dropout.
However, these results don't mean assessments can be as long (or short) as possible. Instead, HR leaders should focus on other elements of the application process that are essential to a positive candidate experience, including:
• Pay Rate: Higher-paying jobs tend to see less dropout compared to lower-paying alternatives. Since dropout decreases by 36% for every $10,000 in salary based on my company's research, HR leaders might consider adjusting or increasing salary caps for hard-to-fill positions.
• Engagement Rate: The hiring process should serve as a two-way information exchange. Rather than simply evaluating the candidate’s capabilities, the experience should also serve as an opportunity for the applicant to interview the organization. Job simulations are extremely effective at engaging candidates by showing real-world examples of their experience on the job. Additionally, eliminating redundant data collection in your application process can also reduce candidate attrition.
• Mobile-Friendly Capability: A mobile option is another key predictor of completion rates. Candidates applying on their mobile phones tend to drop out of an assessment if it is not available for their device. While mobile applications are more common for entry-level roles, it is also less significant for managerial positions. Consider integrating mobile options into your hiring workflow for relevant positions.
• Early Assessment Performance: Research shows that much of the attrition during the candidate vetting process is actually quite standard. Since poorer performing candidates are more likely to self-select out of assessments than better-qualified candidates, hiring teams should not be overly concerned about high dropout rates early on.
Four Ways Enterprises Can Optimize Their Hiring Processes
In a big data world, anyone and everyone can apply for a job regardless of location. This wide pool of potential applicants puts immense pressure on many hiring teams to redefine the application process, keep strong candidates in the pipeline and reduce spending.
While there is no silver bullet for solving the issue of low candidate completion rates, HR leaders can take a few key steps to improve the candidate experience, source and hire the best talent and set their teams up for success.
1. Create engaging content. More engaging assessments lead to lower dropout rates. Our research revealed that personalized assessments increase completion rates, so be sure to focus on defining unique questions and simulations to hook the candidate’s attention.
2. Streamline the applicant workflow. Many companies have designed candidate processes that are veritable labyrinths. An organization’s applicant workflow remains a major factor in candidate dropout. All-in-one hiring experiences see the highest completion rates, so consider streamlining the hiring process to make it as user-friendly and intuitive as possible.
3. Evaluate your end-to-end hiring process. Identify any friction points that might be contributing to candidate dropout. For instance, trade low-value, high-resource requirement steps like a hiring manager interview for more validated tools such as pre-hire assessments.
4. Be objective. Use strong assessment and interview tools that are measuring job-relevant characteristics to determine predictive success. Structured or behavior-based interviews are significantly more effective than unstructured interviews. In structured behavioral interviews, pre-determined anchored rating scales are used to evaluate answers to specific interview questions. This can enhance the quality and honesty of information gathered in an employment interview and also reduce bias because candidates are evaluated on job-related questions rather than subjective or irrelevant queries.
As you consider how to reinvent your hiring process, keep one thing in mind: Some level of candidate dropout is healthy. The key to hiring strong talent lies in understanding how — and why — high-quality candidates have low completion rates.
By optimizing the hiring process through personalized assessments and interviews, you can welcome the next generation of talent into your organization.
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