The beginning of 2020 sparked an era of colossal change in remote work trends.
Remote work tools gained in popularity with the rise of remote work policies, allowing millions to carry out everyday job-related tasks from the comfort of their own home.
But while work itself became more accessible to many, the challenges of making the optimal hiring decisions based on online resumes and cover letters became greater.
That’s why more employers are using pre-employment tests to hire the right person for the job. Industry knowledge, skills, attitude, and behavior are only some of the elements that pre-employment tests can reveal to you about your potential employees.
The value of pre-employment testing as a key tool for selecting the best possible candidates is evident now more than ever, especially when it comes to remote hiring.
This article covers:
Remote Work Statistics
Approximately 40.7 million employees in the US will have fully remote jobs by 2027 (Upwork).
The number of people who work remotely is increasing year after year. Nearly 28% of respondents in Upwork’s survey believe they will be fully remote in the next five years, up from 22.9% in their last survey conducted in November 2020.
- Before the Covid-19 pandemic, businesses predicted that 38% of their employees would be fully remote in 5-years time.
- Today, businesses predict 58% of their employees will be fully remote in 5 years.
For 90% of employees, productivity remained unchanged after switching to remote (Owl Labs).
The switch to remote work should not be a surprise, as the model is delivering results. Owl Lab’s research also revealed that almost half of respondents would accept a 5% pay cut to work from home permanently.
- 55% of employees say they work more hours working remotely than at the physical office.
- 82% of employees say that working remotely is better for their mental health.
- 84% of employees say that working from home would make them happier.
Research has found that allowing employees to arrange their own working conditions gives them a higher sense of agency. It also empowers employees to work at times when they are most focused, leading to higher productivity levels overall. By providing employees this freedom, companies also communicate that they trust their employees, which strengthens their bond and improves engagement and retention.
70% of businesses will be relying on a hybrid work model going forward (Jobvite).
Only 14% of businesses intend to return to a 100% in-office policy.
47% of companies have opted for a three days in office - two days remote policy, making it the most popular office/remote pattern.
The flexibility associated with hybrid work has made it the most popular option going forward, providing employees with a more dynamic and engaging work schedule.
1 in 3 workers would resign if they had to go back to the office after the pandemic (Owl Labs).
There are many benefits that come with remote working, and employees now have first-hand experience of their value. 71% of employees now would prefer to continue working remote or hybrid.
For those employees with families, staying at home has allowed them to care for their children or dependents.
Working from home full-time is preferred by 57% of employees (Owl Labs).
Satisfied employees have much more to offer, which is why executives should consider creating a model that will bring the best results.
But not every aspect of remote work is perfect. One of the biggest challenges that companies face today is remote hiring.
Remote Hiring Trends and Challenges Statistics
33.1% of employers view remote hiring as their biggest challenge today (Workable).
The efforts to find the missing piece that each company needs have multiplied, and new methods are arising to accommodate these rapid changes.
Workable’s survey respondents have identified the most challenging elements of remote hiring ones:
- Candidate engagement – 51.7% of respondents
- Candidate onboarding – 49.7% of respondents
- Candidate evaluation – 42.4% of respondents
Candidate engagement increases the interest among job applicants, and it affects the reputation of your organization. Knowing how to attract talent is one of the keys to success, but even the most talented hire will need to go through effective onboarding to become a productive employee.
Identifying and recruiting skilled professionals is among the top 3 priorities of HR managers for 2022 (SHRM).
Finding hires with crucial job skills is currently the main focus of 68% of organizations, making it the third-highest priority of HR departments in the US today. Other priorities in hiring managers’ top lists include maintaining employee morale and engagement (80% of organizations), as well as retaining top talent (70% of organizations).
47% of recruiters find the lack of qualified candidates to be their biggest challenge (Jobvite).
Other challenges include:
Too many applicants. Only 4% of recruiters perceived this as an issue in 2017, compared to 21% in 2022.
Misalignment between recruiters and hiring executives. The increase in misalignment of hiring objectives, from 13% in 2020 to 23% in 2022, shows that there is a growing gap between recruiters and decision-makers.
Communication with applicants. 28% of recruiters admit having issues communicating with candidates in 2022, compared to 20% in 2017.
Jobvite’s research also uncovered candidate misrepresentation remains an issue, as stated by 65% of recruiters. According to Jobvite’s survey participants, 45% of candidates aren’t truthful about technical skills, while 44% misrepresent their previous experience.
To tackle this issue, many organizations turn to pre-employment tests.
Pre-Employment Testing Statistics
Remote organizations are 1.5 to 2.5 times more effective when it comes to recruitment and retention (SHRM).
Specifically, remote organizations outperformed in-person companies when it came to:
- Finding and recruiting the talent with necessary skills
- Maintaining employee morale and engagement
- Retaining top talent
Over 65% of employers today use some form of a pre-employment test (Talent Board).
Pre-employment assessments are highly valued among hiring managers. Over 65% of employers state that they use one or more tests during the interview stage, a report from Talent Board reveals.
- 52% of employers test for job-specific skills
- 37% of employers test for cognitive ability
- 34% of employers administer personality tests
- 26% of employers test candidates for culture fit
62% of employers say the top reason they use pre-hire assessments is to help hiring managers make better decisions (Talent Board).
Additionally, 47% of employers use pre-employment tests to improve new hire performance, 34% to risk mitigation, 34% to increase early retention, and 31% to introduce the candidate to the expectations of the role.
Companies that use pre-hire screenings report a 39% lower turnover rate (Aberdeen).
With the help of pre-employment assessments, organizations are more likely to find the perfect candidate for their open roles, which can significantly reduce turnover.
Additionally, organizations that include assessments in the hiring process are 24% more likely to have employees who exceed their performance goals.
Remote work is here to stay, and so is remote hiring.
Companies are coming up with new ways to adapt to the challenges that remote hiring presents. Candidate engagement, onboarding, and evaluation are the most common challenges that HR managers face.
If you want to align your strategy with 22% of respondents from Jobvite’s report and switch to end-to-end virtual hiring, every data point about your candidates will be helpful to make the best hiring decision.
EmployTest offers a variety of pre-employment tests that can help you understand your candidates better.