On the HR wish list: Flexible business models for talent assessment

On the HR wish list: Flexible business models for talent assessment

01.02.2018 By Breanne Harris

While the vast majority of personality assessments on the market promote the importance of understanding and embracing individual differences and preferences, when it comes to the business model of those assessment publishers, many are as flexible as a steel pole. Pre-paying for assessments is generally the industry standard, but is this how HR professionals want to work?

By Breanne Harris, Principal Consultant, Cubiks USA

In our last two Talent Assessment Trends blog posts, we discussed how recruiter demands and the candidate experience are driving change in the talent assessment industry. This week, we’ll dive into the basic business model changes you should expect from talent assessment publishers this year.

The way you pay: What needs to change

Finding flexible options

The reality is that the assessment purchase model isn’t one-size fits all, and talent assessment providers are learning to adjust to customers’ needs. The company with a small volume need shouldn’t be forced to add 15 line items for assessments to their expense report because the industry standard is pre-pay.

Assessment providers must learn to adapt and be flexible to their customers’ usage/accounting needs by offering monthly or quarterly post-pay options. For high-volume users of assessments, a subscription model is the only viable option. That subscription model should go deeper than one assessment, though. In 2018, assessment subscriptions should include the entire assessment provider’s catalog at one rate.

Adding People Analytics to your subscription

Additionally, People Analytics will become a key feature in assessment subscription models. We’re on the verge of a People Analytics revolution! With assessment publishers sitting on a wealth of data, and organizations needing fact-based insights to make people decisions, expect assessment publishers to expand their team of Industrial/Organizational Psychologists to incorporate People Analytics into their subscription packages.

Paying per assessment, not per report

One last note on pricing model trends, it’s important to mention that assessment customers aren’t paying “per assessment” in most cases. They’re paying “per report.” While the candidate only took one assessment, publishers are charging companies hundreds of dollars to pull multiple reports from that one individual’s responses. The Profile Report, Interview Report, Feedback Report, Coaching Report, Potential Report, Leadership Report, etc each come with their own price tag.

The report-based price model is contradictory to assessment providers’ best-practice messaging that suggests you should use the results of the assessment to drive both selection decisions and coach developmental needs. In 2018, assessment publishers will have to match their messaging with their price model. If the assessment results should be used throughout the talent lifecycle then customers shouldn’t be charged each time a report is drawn from the same results. The new standard will be one assessment, all reports for one price.

Join our webcast next week when we will count down The Top 10 Trends in Talent Assessment.

Spoiler alert: Artificial Intelligence makes the list! Register here to attend now!

 

About Breanne

Breanne Harris is a talent assessment expert with a background in Industrial‐Organizational Psychology and 12 years of experience consulting with organizations on assessment and training solutions. As a Principal Consultant at Cubiks US, Breanne supports organizations by leveraging the Cubiks assessment portfolio for candidate selection and leadership development. She lives in Kansas City with her husband, two young daughters and two dogs.

Connect with Breanne on LinkedIn.