By bypassing psychological assessments in your recruitment process, you could be losing far more than just time and effort. Methods like unstructured interviews and personal references might seem easy, but they often lead to poor hiring decisions that end up costing your company significantly.

The Price of Ineffective Hiring Methods
Hiring the wrong candidate is expensive. It’s not just about the salary—there are hidden costs like decreased productivity, low morale, and the need to rehire. According to a 2016 study by Schmidt, Oh, and Shaffer, companies can lose millions by sticking to outdated, low-validity methods that fail to give a true picture of a candidate’s potential.

Unstructured interviews, for example, are highly subjective and can be influenced by interviewer bias, making them unreliable for predicting job success. Application forms and personal references may provide basic information, but they don’t reveal how well a candidate will actually perform or fit into the team.