Angle icon pointing down An icon shaped like an angle pointing down. Candidates want to be compensated for taking hiring tests, but the balance of power remains firmly on the side of employers. Nuthawut Somsuk/Getty
- Job applicants have to complete more time-consuming tests in order to impress employers.
- And some employers are starting to compensate candidates for these tests.
- But with power in the hands of employers, there is little incentive for this to become the norm, experts say.
Michelle Tran was one of the lucky ones who found a job she enjoyed straight out of college in 2022. She worked in that digital marketing position for about a year before personal reasons led her to quit.
But when he started looking for his next job last year, the job market got tougher. A year later, he is still out of work.
Tran has taken on the task of applying for jobs like a job in itself. He’s put together a schedule where he applies for 30 jobs a month. Much of his time ends up being spent taking job demonstration tests that last for hours. “It’s a very time-consuming task,” he told Business Insider, “but I try to give myself weekends off if I can.”
While she understands that companies want to conduct these tests to check that candidates have the relevant skills, she said that sometimes these tests give the impression that they are offering “free consulting.” This is especially true when the tests involve creating social media plans for their existing clients.
Surprisingly, he has found that some companies are willing to pay for the time invested in these tests.
“It’s a respectful way to compensate you for doing this work on a project,” she told BI. One agency gave her a $90 gift card for completing a two-hour hiring test.
Adding that it’s a big red flag for a company, “it gives you a good perspective on how the company might treat you when you work there.”
But while candidates value compensation, the decision to offer it is up to employers.
Power remains in the hands of businessmen
Job seekers complain of a brutal hiring market. ANDREW CABALLERO-REYNOLDS/AFP via /JOBs Apply News/Getty Images
Job seekers are expressing their frustrations online about having to jump through more hoops in the hiring application process.
The hiring landscape is changing rapidly. The era of the Great Quit, when a wave of people left their jobs to start a new one, has given way to a new era, the “Great Stay,” when more people stay in their jobs.
This means fewer jobs for the unemployed.
Added to this is the fact that companies have been tightening their purse strings in the face of economic hardship, shifting the balance of power back to employers.
“There’s been a dramatic shift in the job market over the last few years,” Chris Abbass, founder and CEO of recruiting firm Talentful, previously told Business Insider.
That’s why some candidates, like Tran, are pleased, if surprised, when employers compensate them for the time they spend on these tests.
As power shifts back into the hands of employers, they have little incentive to offer these kinds of benefits. Tran said she still does hiring tests even when she’s not getting paid, because she doesn’t want to close off her options.
Employers’ Perspective
Paying candidates to complete time-consuming job tests can help make hiring more inclusive. Joe Raedle//JOBs Apply News/Getty Images
However, some employers find that paying candidates helps them hire the best people and makes the process more fair.
Datapeople, a New York-based company, describes itself as helping companies deliver a “more human hiring experience” through its intelligence platform. And it practices what it preaches by compensating candidates for taking job demonstration tests during the hiring process.
Amit Bhatia, co-founder of the company, told BI that the compensation applies to all candidates who have to complete a test, from entry-level candidates to vice presidents. The amount of compensation does not depend on the title, but on the effort they anticipate the task will require.
“In our view, this is a requirement for a truly inclusive interview process,” she said. For example, some candidates may have to pay for childcare in order to be able to concentrate and perform at their best on the exam.
“While some candidates may have the financial and personal flexibility to invest time in producing a quality work demonstration, others may not, which could create undue stress or harm their candidacy,” Bhatia added.
“Candidates who are normally reluctant to invest in a work demonstration are happy to know that they will be compensated,” he added.
Experts are not sure whether this will become the norm in the near future.
However, it is not yet the norm in hiring practices and some experts do not believe it will become widespread.
“I don’t think it will become a norm anytime soon,” Carolin Chmielewski, founder of talent acquisition agency Talent Cove, told BI. “It was always something that candidates could do, but slowly this has started to change,” she added.
But the demand for candidates is still there. Chmielewski said he has had some candidates drop out of interviews because the test case was too time-consuming.
“I think companies need to think about some kind of compensation if the test is time-consuming so they don’t lose candidates and have high dropout rates,” he said.
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