Benchmarking done right: Nuance, action, and innovation in hiring

In the world of hiring and assessment programs, it’s natural to feel unsure about what “good” looks like. With so many variables at play—whether it’s determining the optimal length of an assessment or the right completion rates—finding the right benchmarks can be challenging. This is where HireVue’s experience comes in. With a deep understanding of the hiring landscape and decades of expertise, we can help you evaluate your assessment program by identifying the data points you should be concerned about and the data points that aren't going to be useful.

We regularly receive benchmarking requests from clients, and it’s easy to understand why. The hiring process is always evolving, and hiring professionals want to know how they compare to others. Simply put, clients want assurance they’re on the right track. But before jumping into the numbers, it’s essential to take a deliberate approach—one that HireVue can guide you through based on real industry knowledge and best practices. Understand the context

Let’s start with a key point: benchmarking is not a one-size-fits-all solution. Just like you wouldn’t use your neighbor’s car purchase to determine how much *you* should spend, the same applies to hiring. When clients ask, “What’s the average completion rate for this tool?” they’re asking a good question, but it needs more context. Think of it like buying a car: Are we talking about a luxury brand or something more economical? Is it new or used? The same details apply to assessments—things like whether they’ve been validated, shortened, or tailored to specific business outcomes matter.

Best practice #1: Know what you want from the data

Before starting any benchmarking, ask yourself: what do I want to achieve? Are you looking for reassurance that you’re not far from the norm, or are you seeking actionable insights? If it’s just for reassurance, it might not be worth the effort. Don’t benchmark just for the sake of it—use it to make informed decisions. If your goal is to take action based on the data, make sure that’s clear from the beginning.

Best practice #2: Track what’s important

Benchmarking should be part of a thoughtful, planned approach, not a knee-jerk reaction to a concern. If a client suddenly wants to benchmark completion rates because of a new concern, we like to help solve the concern first and foremost rather than add benchmarks that may lead to unnecessary comparisons and confusion. Instead, it’s more effective to track and benchmark data on an ongoing basis. For example, we provide quarterly reports to clients so they can keep an eye on key metrics—this keeps benchmarking proactive, not reactive.

Best practice #3: Compare internally first

While external benchmarks are helpful, don’t forget the value of tracking your internal trends. If your completion rates drop or candidate feedback shifts significantly, that’s a sign something needs attention. By benchmarking against your data, you can spot these changes quickly and take action where necessary.

Best practice #4: Think in ranges, not absolutes

Getting caught up in specific numbers can lead to unnecessary stress. For example, if your completion rate is 73% but you’ve identified a benchmark of 75%, there’s no need to worry. Benchmarking is not an exact science, and small variations like these don’t require immediate action. That’s why we recommend working within ranges—for instance, we might suggest a completion rate between 65% and 85%. If you’re within that range, you’re in good shape.

Best practice #5: Benchmarking for differentiation, not just reassurance

While benchmarking can provide a sense of comfort, showing that you're aligned with industry practices, it can also present an opportunity for differentiation. If a benchmark tells you that most companies don’t use assessments for a specific position, it’s worth questioning whether you should do the same. Instead, consider whether there’s an opportunity to exploit a weakness in the market. By thinking differently, you can use assessments to grab the best talent more quickly than competitors. The key is not to benchmark for the sake of conformity but to find ways to stand out and improve your processes.

Conclusion

The TL;DR of this whole post is that while there are numerous ways to evaluate the effectiveness of an assessment program, many organizations often default to benchmarking against others' selection programs. While that can be helpful, the most important thing you can do is start with clear goals that align with your organization’s values and business objectives. Our best and most effective assessment programs rarely, if ever, rely on benchmarking data. Instead, they focus on knowing what they want to accomplish, tracking their progress, and striving to achieve those goals.

To learn more about the assessment tools available to unlock your candidate’s potential, schedule a demo with a member of our team.