Three major types of benefits may occur from the use of a “best-practices” system. First, by definition, using a best-practices system reduces the company’s legal exposure.
Second, a best-practices system usually reduces selection and training costs. Each selection test in a best-practices system (including the interviews) must be validated. Validation ensures that the test actually helps identify the best applicants and reduces unnecessary selection expenses. In a best-practices system, success in training usually becomes an explicit goal of the selection system. As a result, the percentage of new hires who successfully complete training and probation increases. Every new hire who completes training and probation translates into one less person to be recruited and trained.
The third benefit concerns the quality of the new hires. To set up a best-practices system, the company must define clearly what it means by a “good pilot.” The selection system then is designed specifically to identify those applicants who have the highest probability of meeting those definitions. This improves the overall quality of the new hires.