The cost of a bad hire can be astronomical, wasting a company’s resources – financial or otherwise – on recruitment and compensation. The hidden expenditure associated with low morale and lost productivity also adds up over time.

Job simulations offer an effective way to add objectivity to the hiring process while verifying a candidate has the skills to perform the role. It is a recruitment method that mimics the real responsibilities an employee would perform.

The purpose is to provide more insight into a candidate’s capabilities than a cover letter or CV can offer, leading to better hires and reduced costs.

Simulations also eliminate some of the unconscious bias that prevents well-qualified, diverse candidates from being hired. It sets clear expectations of what the job entails, which can lead to higher employee satisfaction.

Job simulations come in many different forms:

• In-basket exercises

An in-basket exercise tests how well a candidate can complete a task in a certain amount of time. It gets its name from earlier years during which an employee would have an actual inbox or in-basket on their desk where managers would leave tasks to be completed.

In-basket exercises are best suited for administrative or managerial positions where the candidate needs to be well-organised. They are also a good way to test project-management skills.

• Situational judgment tests

A situational judgment test assesses a candidate’s decision-making processes by introducing theoretical work scenarios. These are ideal for customer-related roles and leadership positions.

A test, for instance, may present a scenario in which an angry customer demands a refund for which they are not eligible. The candidate will have to decide how they would resolve the situation.

• Skill assessments

Skill assessments mimic actual tasks a candidate would perform on the job. These are tailored based on the job role as well as the needs of the hiring team, which can combine different types of questions to get a full idea of how a candidate will perform in different scenarios.

There are many ways to set up a skills test. It can be task-related, such as creating a Powerpoint slide; or it might be hyper-specific to test a niche skill, like a coding language. Otherwise, questions can be posed more broadly to test a candidate’s general requirements for success.

• Live simulations

Live simulations may include role-playing, group interviews, presentations or case studies, often taking place in a virtual room or in person. The goal is to see how candidates solve problems, use their soft and hard skills, and understand the role.

Live simulations may be a little difficult to manage if your team is hiring remotely. Some companies have started gravitating towards video interviews, which can accomplish the same goals as role-playing in person.

• Take-home assignments

Some companies prefer to give candidates every advantage with a take-home assignment, which needs to be done by a deadline. Candidates benefit from completing the task in their own environment and on their own schedule.

Common characteristics

While job simulations can take many forms, they all have a few commonalities that make them work.

• Immersive

A candidate must feel what it’s like to perform the tasks and responsibilities of the role. The simulation can require two hours or a full day in the office. No matter the duration, employees must be given the space to see if they are a good fit for the job.

• Consistent

A simulation must match the description of the job for which the candidate has applied, and should test the specific requirements.

• Objective

Interviews and CV reviews open the door for unconscious bias. Simulations can even the playing field for all candidates.

Before implementing a job simulation, there are a few ways to make sure candidates are set up for success:

• Send clear instructions and what to expect before a candidate begins the simulation.
• Explain what the simulation will be used for, and how it fits into the rest of the hiring process.
• For virtual tests or interviews, make sure the candidate has the technology and connection required.

Job simulations are typically used at two points in the hiring process:

• As a screening tool

Some simulations come early in the hiring process. Situational judgment tests, skill assessments, and other types of role-specific exercises allow hiring teams to weed out those who cannot perform at the level required.

These simulations can be used to screen candidates in, not out. When used early in the hiring process, skill tests can select a more diverse pool of applicants to continue to the next phase.

• As a final step

Live simulations and in-basket exercises are often best suited to the final stage of the hiring process as they connect candidates with existing team members. Shortlisted candidates should be prioritised for these types of tests.

Leaving a realistic job preview for later in the hiring process means recruiting teams don’t spend time creating scenarios for candidates who aren’t serious. If the job description is accurate and the candidate has asked questions along the way, the tasks in a simulation should come as no surprise.

In conclusion, job simulations offer companies an easy way to save money on recruiting costs, lower employee turnover, and create a great candidate experience. Whether as a screening tool or following the final interview – or both – candidates are given an opportunity to try the role on for size before signing a contract.

This article first appeared in Vervoe.

At Vervoe, their mission is to fundamentally transform the hiring process from mediocracy to meritocracy.