Job Simulations Affordable at a Location Near You
November 3, 2014 at 7:00:00 PM EST By Mike Russiello Now Affordable at a Location Near You: Simulation-based AssessmentsThink simulation-based assessment is too expensive for your organization? Think again. A series of technological and business developments has reduced costs by over 80 percent.A legacy of expensive perceptions![]() For example, in 2011, Neil McPhie, Chairman of the United States Merit Systems Protection Board, in his cover letter to the President, accompanying the report “Job Simulations: Trying Out for a Federal Job (http://www.mspb.gov/netsearch/viewdocs.aspx?docnumber=452039&version=453207),” wrote: "We define job simulation as an assessment that presents applicants with realistic, job-related situations and documents their behaviors or responses to help determine their qualifications for the job. … Simulations can do a better job of predicting which applicants will perform well on the job than many other commonly used assessments, and they can provide a greater degree of fairness in the process. However, their potentially high development cost is a key drawback." More affordable today than you thinkIt turns out that Mr. McPhie was only half right, at least in how his statement applies to the future. Certainly in the past, simulations were expensive to develop. However, today, a perfect storm of technological developments, business dynamics, and enterprising entrepreneurs have made simulation-based assessment affordable for nearly every organization.
Virtually any company can access off-the-shelf simulation-based assessments without breaking the bank. Companies that currently offer off-the-shelf simulation-based assessments include:
In general pricing for off-the-shelf simulation-based assessments is equal to or lower than text-based competitive products. For instance, HR Avatar's pricing for simulation begins at $19 USD a test and goes down from there (with volume). Of course, the factors underlying the affordability of both off-the-shelf and custom assessments are the same. We'll review these next. The drivers of cost reduction
Reviewing the timeline, we see that, compared to 10 years ago, today's simulation developer:
Seen from a different angle, the technologies and capabilities introduced on the timeline make it possible for a small number of medium-skilled staff to do the necessary work with a set of low-cost tools, which was once the domain of highly skilled experts and their expensive equipment and tools. ConclusionFirst, off-the-shelf simulation-based assessments are available today at prices equal to or below their text-based, legacy competitors. This means virtually every company can access this technology and the benefits it brings at minimal expense.Second, custom-made simulation-based assessment has dropped by more than 80% during the past decade, and these costs are likely to continue to decline. Does this mean there is no incremental cost for developing custom simulations compared to a text-based, legacy test? Of course not. There is still extra cost. However, we are in an era in which candidates expect employers to make use of the latest technologies in their hiring practices. While a baby boom candidate might not object to an abstract personality inventory that doesn't seem related to the work to be done, Millennial candidates are far more likely to either object to non-job-related approaches. In light of these changing candidate expectations, the ever decreasing simulation premium is certainly worth considering. If you think simulation-based tests might work for you, the first question is whether the off-the-shelf tests will meet your needs. If the answer is yes, that's just great. If not, we'd recommend getting an estimate of what it would cost to develop. Be sure you work with people who know what they are doing. It will probably be less than you think. |