The best hiring practices that can save you $20,000 per hire

December 30, 2016
4 mins

I would rather interview 50 people and not hire anyone than hire the wrong person.

Jeff Bezos

From interns to CEOs you can find numerous examples of wrong hires. It is bound to happen in every company. Sooner or later you hire someone who is just not the right fit.

According to the US labor department, the cost of a wrong hire on average is 1/3rd of the employee’s first-year salary.

Assuming the salary of an entry-level programmer is $60,000. The cost you pay for making a wrong hire is at least $20,000.

A foolproof hiring process does not exist.

However, all hope is not lost.

The margin of error can be minimized by optimizing your hiring process. While there are different ways of optimizing technical hiring, this article focuses only on an automated online technical-skill assessment test.

What are the best hiring practices?

A company is the sum of its employees.

An optimum hiring process is a system that allows you to consistently hire top quality candidates.

If you rate potential employees on a scale of 1 to 10, 10 being the best, then optimum hiring is consistently hiring employees with a minimum rating of at least 7.

Technical hiring

There are over 18 million programmers in the world. However, hiring the right one is not an easy task.

But unlike hiring sales or marketing professionals, you have almost an unfair advantage when it comes to hiring programmers. (Also read – How to hire a programmer using online test)

The unfair advantage is that you can accurately assess and quantify the skill level of programmers.

In other words, you can test how good a programmer will be at the job and it is a sin not to make use of this advantage!

Automated online technical-skill assessment is the best way to accurately assess the skills of a candidate.

Automated talent assessment test

Unlike whiteboard interviews or other forms of technical interviews, automated online technical-skill assessment test allows recruiters to accurately assess the technical skills of a programmer irrespective of the recruiter’s coding ability.

It does not matter, whether you are an HR, technical manager, coding wizard, or a non-coding muggle.

If you are wondering where the online talent assessment test fit in an interview process, look no further.

Automated skill assessment fits in your screening process of the interview, skill assessment, automated skill assessment, skill assessment test

You source candidates from various job portals, shortlist them based on their résumé or by traditional pen-and-paper tests and proceed to technical interviews.

Now substitute the manual shortlisting with automated skill assessment test. It makes a world of difference to the hiring the process.

Online skill assessment test platforms let you:

  • Scale
  • Eliminate candidates early
  • Standardize
  • Optimize cost
  • Look for skills beyond the 

(Also read – 5 reasons you should use talent assessment tools)


Online talent assessment test allows you to access a large pool of applicants. 

Manually shortlisting résumés and conducting pen-and-paper tests consume a lot of time and effort. They are not scalable. How long do you think it will take you to manually screen 1000 applicants? Days, weeks or even a month!

On the other hand, automated online talent-assessment platforms allow you to screen any number of candidates simultaneously in a matter of hours.

Early elimination

Eliminate candidates who do not meet your technical standards early on. While missing out on a great candidate is regrettable, making a wrong hire is even more awful as it will cost you a lot more than money in the long run.

With online technical skills assessment, it is easy to eliminate candidates who are not technically qualified for a position. It saves the time of everyone involved in the hiring process.

On average, technical recruiters spend 60% of their time on sourcing and 40% of their time screening candidates.

With automated online skill-assessment platforms, only 10% of your time is required for screening.

You can spend the remaining 90% on other tasks.

Technical managers can spend their time interviewing only those candidates who clear the minimum requirements. It is better to interview 4 candidates rather than 20 to hire THE ONE.


No human bias = Zero margin for error

Automation eliminates unconscious human bias, perceptions, and preconceived notions thus helping to standardize the interview process across the functions and levels of a company.

Every day potentially top candidates are overlooked because of their gender, race, experience (or lack of it!), and education.

In the end, all that matters for a good programmer is how skilled they are at programming. While manual screening can be biased, automated screening is not.


In an ideal screening process, the cost of hiring should not increase significantly as the number of candidates increase.

In the manual assessment, this cannot be prevented. With manual assessments, the cost of hiring increases drastically as you scale.

For example, Odessa Technologies Pvt. Ltd., a lease-and-loan-management software company headquartered in Philadelphia, screened 10,000+ candidates from 40 different colleges in a span of 5 months using an automated technical assessment platform.

Imagine how much time, money, and effort they would have required had they done this manually! Here is how much they saved by using the automated online skill-assessment platform. (Also read – The magic wand of HR)manual assessment vs automated online skills assessment, automated skill assessment, skill assessment

Look for skills beyond the résumé

A well-polished résumé does not always reflect the true skills of the candidate. To find the best fit, you cannot always rely on résumés. You have to use alternative methods to assess the skills of candidates. Automated online skill assessment test enables you to conduct skill-based hiring, which would accurately reflect the skills of the candidate.


** See why more than 4,000 companies choose HackerEarth to hire developers

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Also published on Medium.


About the Author

Vivek Siva
Learned what not to do as an entrepreneur. An optimist with a love for business, the outdoors, and movies. Superpower: Ability to smile even when all hell breaks loose. Affiliation: World of witchcraft & wizardry

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