Nov 11, 2014 | Blog

Hiring for the Right Customer Service Competencies Moves the Needle

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During the recession, most firms learned how to do more with less.  As companies tightened their collective belts to survive a competitive environment, lean became the new normal, and each individual hire a firm chose to make became an even more important decision. 

No one has the time and money to waste on a hire that turns out to be a bad fit six months into their tenure.  One way firms have been dealing with this challenge is by deploying pre-hire assessments to determine a variety of fit factors. 

And, particularly as retailers are gearing up for seasonal hiring pushes during the holidays, it’s important to look beyond basic customer service skills - such as listening and problem-solving - and identify how well they will engage with your customers.  That’s according to new research from SkillSurvey.

That research also reveals that:

  • Nearly one-third (31%) of customer service and sales job candidates could improve their ability to encourage customers to upgrade or buy new products or services by offering them more options
  • More than one in four (27%) need to work on their ability to give customers specific recommendations about company products and services, based on information about the customer

These findings are based on a SkillSurvey study of feedback from nearly 17,000 job references on approximately 4,500 job candidates for customer service/sales positions that were assessed through its reference assessment software, Pre-Hire 360®.

“Smart, strategic companies can set themselves apart and boost their bottom line by hiring customer service and sales representatives who have shown that they are great listeners and able to engage thoughtfully with customers,” said Ray Bixler, president and CEO, SkillSurvey.  “Using input from job references to identify those hard-to-find markers of success is a great way to help boost results this holiday season.”

Good customer service means good business.  More than two-thirds (68%) of customers say they are willing to spend 14% more, on average, at a company that they believe provides excellent customer service, according to a 2014 study by American Express.  On the other hand, 37% of customers said they will switch companies after a single poor customer service experience.

Lauren Weber and Elizabeth Dwoskin of The Wall Street Journal recently reported, “The use of online personality tests by employers has surged in the past decade as they try to streamline the hiring process, especially for customer service jobs.”  And, “such tests are used to assess the personality, skills, cognitive abilities and other traits of 60% to 70% of prospective workers in the U.S., up from 30% to 40% about five years ago,” estimates Josh Bersin, principal, Bersin by Deloitte.

Scientifically valid job assessments can now be found for any number of roles, whether your organization is hiring for medical, accounting, finance, customer service or sales.  Hiring managers are then able to leverage reports from these assessments to determine best-fit candidates.

Weber and Dwoskin shared examples of firms leveraging assessments to improve their hiring process, like Xerox.  “Xerox has begun probing for compassion in pre-employment tests, since applicants who score high for empathy tend to excel in customer service, according to the company.”  Of course, there are a lot of other job-specific factors that will lead to success.  Among them, the ability to utilize any technology - like a CRM - that is required for logging customer interactions, and adequate follow-through and communications skills to please customers.

Progressive firms have been using assessments to streamline and improve their hiring processes for a while now.  If you are interested in a deeper dive into the world of assessments  - particularly from a references’ point of view - and what they could be doing for your firm, check out the HCI OnDemand webcasts The Anatomy of a Pre-Hire Reference Assessment: Big Data from References Creates Insights for Better Hiring or Soft Skills, Hard Benefits: Assessing the Key Predictors of Hiring Success for some case studies and best practices. 

Don’t forget that 46% of new hires fail within the first 18 months on the job.  Deploying assessments is one action that can start to deliver value immediately.