Imagine spending $60,000 to hire a manager only to find out three months later they weren’t a good fit. Not only do you lose that money, but you also lose time, morale, and team performance. This story plays out in hospitality, retail, and service sectors every day.
The good news? There’s science that can help. With just one added step using validated hiring assessments you can dramatically improve the odds of making a great hire. This blog breaks down the data behind selection methods and shows how assessments drive real ROI without dragging down your hiring speed.
Unstructured interviews are still the norm in many organizations. They feel intuitive, flexible, and familiar. They get very good feedback and ratings on platforms like Glassdoor where frontline employees are looking for companies that aren’t concerned with quality and will hire quickly. But they’re also inconsistent, prone to bias, and low on predictive value. In customer facing roles (Sales, Customer Service, Restaurants, Hospitality, etc.) this harms your brand reputation, customer/guest experience, which eventually will drive down your revenue.
Multiple meta-analytic studies (Schmidt & Hunter, 1998; Huffcutt et al., 2014; Sackett et al., 2023 ) have shown that on average, if you're only using an unstructured interview, your chances of hiring a successful employee are about 60%. That’s basically a coin flip. Not exactly inspiring odds when every hire affects your bottom line.
Now compare that to the strength of the relationship in predicting performance using tools like a personality assessment, structured interview, or cognitive ability test. Using any one of the assessment below increase your chances of making the right hire between 6%-22%. This also means they will likely be more productive. IN terms of a salary of $60k, that is anywhere between $9,700-$14,000 per employee! Let’s unpack this with hard data.
Here’s how different hiring methods stack up for manager roles (salary: $60K). Research has shown that using a quick recruiter screen and unstructured interview yields around a 55%-60% success rate. The base rate assumes a 56.7% success rate using an unstructured interview. “Utility per hire” reflects the estimated value added from more accurate hiring based on expected increased productivity in those better candidates expressed as a function of their average salary of 60k.
What happens when you combine tools? It’s not just additive, it’s incremental. Each added layer boosts performance accuracy and decision confidence. And it’s not just speculation, these values are based on rigorous meta-analyses across thousands of studies and ~500,000 employees.
Sure, it might look good on the surface, but you’re blind to the structural issues bad wiring, leaky plumbing, or a cracked foundation. Assessments give you the behind-the-scenes clarity so you’re not stuck with costly surprises after the hire.
What hiring managers often say:
Here’s the counterpoint: that “extra step” can net $10,000–16,000 per hire in productivity and increase the hit rate on quality hires from 60% to nearly 90%. And modern assessment platforms are built to be mobile-friendly, quick, and scientifically validated so while you may add a small step, you're greatly sharpening your aim.
Unstructured interviews = 60% success rate
Adding structured methods lifts hit rates to 76–82%
Cognitive, personality, and SJT tools deliver ROI of $7–16K per hire
Combining tools multiplies gains
Fast, valid assessments create consistency and reduce costly misfires
Most tools (e.g., personality, SJT, or cognitive) can be completed in 10–30 minutes. Bundled formats make this even more efficient.
Perfect. Assessments don’t replace interviews they strengthen them. Use the data to guide structured interviews and reduce subjective bias.
Very low. The biggest risk is sticking with unvalidated methods. Scientifically validated tools, especially when customized with job-specific data, tend to be legally defensible, fairer, and more predictive.
If you’re still relying on instinct and résumé reviews alone, it’s time to level up. Tools like ForPsyte’s Assessment Platform combine speed, science, and flexibility so you can hire smarter without slowing down.
Want help building a high-performing hiring strategy that works for your business? Let’s talk.