As we enter the final quarter of the year, you know what that means: budget season is here again! It’s the time when companies take a close look at how much money came in and how much money went out during the previous year and decide what adjustments need to be made for the next year. If you want to change the annual budget for anything, now is the time to speak up.
Some allocations get approval without much debate. For example, there usually isn’t a lot of pushback when office supplies get a line in a company’s budget. (After all, printer paper and staples are always in high demand—and of course, everyone loves sticky notes!). But funding requests for other items are often subjected to intense scrutiny and doesn’t always get a thumbs-up, even when the requests are for important tools. Why? Most of the time, it’s because the requestors don’t make a strong case for them.
HR departments have many resources at their disposal, but few are as powerful as employee assessments. But even though pre-employment testing can play an incredibly critical role in a company’s success (or failure) in staffing, HR doesn’t always get the funding it wants for those tools, because it doesn’t always succeed in demonstrating a need for them and a benefit to having them. If you’re thinking about implementing a new prehire testing solution in the next fiscal year, take your time—and do your research—to build a good case for it by answering two key questions.
“How will this tool help your team do its job more effectively?”
First, examine how you currently handle pre-employment testing. If you’re not already using a solution, why do you need one? And if your company already uses a prehire assessment, why does it need to invest money in something different? Once you can explain how your recommended tool can help HR fill its role better, then it’s time to answer the next question.
“How is this tool essential to the success of the company?”
No matter how useful an expenditure is in terms of efficiency and effectiveness, it doesn’t stand a chance of getting approved if it has a negative effect on the organization’s bottom line. If you want to adopt a new tool, you’ll need to demonstrate how it will strengthen the company financially.
When it comes to generating a positive ROI, Insight Worldwide’s prehire testing tools can’t be beat! In addition to an extensive list of satisfied clients, we have plenty of concrete data to support our claim that our products save companies money.
For example, turnover is an expensive reality of the business world, with one study finding that it cost U.S. companies $600 billion in 2018 alone. Because that same study found that “nearly 77 percent, or three-fourths, of that turnover could be prevented by employers,” it follows that employers should be motivated to do what they can to address this problem. Our tools have a proven track record of reducing turnover rates: by 20.25 percent for one client, by 37 percentage points for another, and by 31 percent for a third (and those are just a few examples).
Consider, too, workers’ compensation claims, which also cut into a company’s bottom line. Thanks in part to using Insight Worldwide’s assessment tools, one company experienced a 28.5 percent drop in claims—and another saw its claims fall by a whopping 44 percent!
That’s just the tip of the iceberg. Companies that use Insight Worldwide’s pre-employment testing have seen positive results in many other areas, too, such as increased production, increased employee and customer satisfaction, and improved company culture—all of which benefit an organization financially. And when it comes to justifications for a budget request, “This proposal has a positive impact on the company’s bottom line” is nearly always a winning hand.
Make a case—and win your funding!
If you want to improve your HR department’s ability to do its job well, look into how pre-employment assessments can improve your ability to make better hires. At Insight Worldwide we can help you identify the solutions that best meet your needs—and we can provide plenty of data to bolster your argument for them so that you’re well prepared when budget time rolls around.
We would love to hear from you whether you’re requesting information, sending along a testimonial or providing us with feedback.