This report was written and researched by Mettl, a leading Talent Assessment Company, with contributions from different industry leaders.

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2 This report was written and researched by Mettl, a leading Talent Assessment Company, with contributions from different industry leaders. We are very thankful to all the contribut ors for their sincere support in creating this report This material is copyrighted and is the property of Mettl. Talent Assessment Study 2018 is available for general release and it along with its excerpts may be reproduced, downloaded from or transmitted in any form electronically, online or in print by permission of the copyright holder; provided full accreditation is given to the Mettl brand.

3 FOREWORD The war for top talent is more fierce today than ever before. Most organizations are facing the challenge of talent scarcity while the demand for top talent is constantly growing. This is big challenge for CXOs, Human Resource Departments and Hiring Managers, especially in high skill requiring industries such as IT, BFSI, Retail, Manufacturing, Pharma and Consulting. In order to solve these challenges, recruitment process has to evolve tremendously, it needs to be more engaging, affordable, productive and still be faster. Two key-takeaways from our interactions with various industry leaders show that understanding the competency framework needed for a job role and correctly identifying the skill sets that the candidate have via use of technology tools such as talent assessment can solve most of the problems of recruiters. Once the top talent has been on-boarded, retaining them is also a big challenge. Structured Learning and Development programs immensely increase employee retention by keeping them meaningfully engaged and motivated. Talent assessments not only help in attracting top talent, but also in retaining them. Additionally, they also help in developing a better employer brand. Thus, they are more interesting, practical, efficient and affordable than traditional hiring practices. This 1st edition of our annual report is an attempt by Mettl to bring out the top trends in assessments for Hiring and L&D across 5 top sectors for the year The main takeaways for reader are:.. Changing Landscape of Talent Assessment Top Talent Assessment Trends in Hiring and L&D for Top 5 Industries, namely: - Information - Technology BFSI - Pharma - Retail - Consulting Hope the reader finds the insights presented in the report interesting and useful. TRY METTL FOR FREE

4 Executive Summary Talent and technology is transforming how recruitment and Learning and Development takes place in organizations. Shortage of high skilled talent has compelled organizations to adopt innovative ways to attract and retain quality talent. Industry leaders are already making use of assessments such as cognitive, psychometric, personality, domain, simulations, assessment centers and platforms with custom content to maintain their position as top players in the market by onboarding the best talent and nurturing them further via innovative and impactful L&D practices. Here are some of the key insights Industries IT Pharma BFSI Retail Trends in Hiring Assessments Provision for Easy Content Customization Skill testing via gamified assessments Behavioral alignment with job role demand Embracing tech skills and talent to onboard the digital economy Using Technology to find talent Trends in L&D Assessments Identifying the proficiency level of employees Mastering in multiple skills Practical Patient handling skills Upskilling in Tech Using field inputs to improve sales productivity

5 Methodology Our database of ~10,00,000 candidates from key industries, who used 5 assessment tools (Psychometric, domain, cognitive, simulations, platforms and technical MCQs) from 2016 to 2017 has provided us with trends and insights regarding which assessment is being used most in which industry and which assessment tool usage has increased the maximum from 2016 to This study covers assessment tool usage data from 21 key industries across 5 assessment tools for year 2016 and 2017 by candidates with roles ranging from Fresher to Director. The total number of candidates who gave assessments are 17,57,736 and the total number of assessments that these candidates gave is 23,38,734. These assessments were given either during the process of Recruitment or Learning and Development. Here are some details on the number of candidates that are covered in this study, year and use case wise: 1,000, , ,000 Growth in the Usage of Assessments in Recruitment and L&D from 2016 to % % 100% Number of candidates 700, , , , ,000 48% 260, ,314 80% 60% 40% Growth rate 200, , ,879 20% 0 L&D Recruitment 0% Number of candidates who took the assessment in 2016 Number of candidates who took the assessments in 2017 Growth in number of candidates from 2016 to 2017 TRY FOR FREE

6 CONTENT Talent. Technology. Transformatio Three T s Changing the Organizationa Talent. Technology. Transformation - 3T s Changing the Organizational Paradigm in Fast Changing Landscape of Talent Assessments 02 Key Assessment Trends in Information Technology Sector 03 Key Assessment Trends in BFSI Industry 04 Key Assessment Trends in Pharma Industry 05 Key Assessment Trends in Retail Industry 06 Key Assessment Trends in Consulting Industry 07 TRY METTL FOR FREE

7 1 Talent. Technology. Transformation. Chapter 1 Three T s Changing the Organizational Paradigm in 2018 In the war for talent, getting candidates interested in the recruitment process is a challenge. With more and more innovative technologies for talent assessment coming into play, and more stringent ways of skill testing being adopted by organizations, the process of recruitment has been transformed into a marathon to bag the best talent before others. With the changes in how recruitment is happening, the role of HR and how organizations function is also changing. We would all agree that Talent and Technology trends are Transforming the Recruitment and L&D landscape. Here are the top trends across the famous 3T s: 1. Talent: Talent acquisition is one of the top 3 challenges faced by organizations in 2018 according to Mettl s report on State of Talent Acquisition Let s look at the trends driving the demand for talent: Increase in hiring by companies: A recent survey by Mettl in their report State of Talent Acquisition in India 2018 found that 87.6% of organizations will be hiring more than previous year. Among this, 67.8% of organizations will be increasing their hiring by more than 25%. In line with the positive hiring sentiment, 87.6% organizations are increasing their recruiting budgets over last year in 2018, a rather big news for job seekers across the Indian Subcontinent 87.6% of organizations who will be hiring more than previous year 67.8% of organization will be increasing there hiring by more than 25 %

8 2 1. Talent: Demand for top talent: : In spite of shortage of candidates for hiring, companies are not compromising on the quality of talent that they are ready to take in. With top talent only available in the market for 101 days, companies are making their recruitment process more practical, less time taking and more interesting to attract talented candidate inflow. Finding candidates with expertise in certain specific skills is the top priority of HR s presently. Rank - 1 Rank - 2 Rank - 3 Rank - 4 Rank - 5 Unique Skill Requirnment Lock of talent pool Millennial Expectation Organization Fit Compensation/Salary Problem Unique Skill Requirnment: Its Going to away the night s sleep of talent acquisition managers in 2018? The primary reason of not finding the perfect fit today is Unique Skill Requirement, Mettl s State of Talent Aquisition 18 respondents said. That marks a major departure from only 2 years ago, when talent acquisition professionals said Lack of Talent Pools was the top reason. Although it stands at a resolute second. 2. Technology: With the advent of technology such as AI and Automation, need for human resource has become more exclusive and recruiters are no longer satisfied by hiring the average Joe. Highly skilled employees who have a track record of great performance are the only talent that recruiters are in pursuit of. In order to tap this talent, organizations need to up their game and use technologies to get hold of top talent. Top technology trends that are impacting Talent are: Hiring Technologies: HR s are moving away from traditional methods of identifying top talent such as face-to-face interviews and resumes. More tangible and result oriented objective way of testing candidates is giving way to more accurate hiring of quality candidates. AI and big data is changing how candidates are sourced, and gamification, simulations and assessment centers are transforming how candidates are tested on various skills and behavioral aspects. Technologies for L&D: To test employees on varied skills in a practical manner and identify skill gaps and training needs, technologies such as online assessments, assessment centers, 360 feedback, simulations, behavioral assessment, gamified assessments etc. that test a candidate on a plethora of facets such as skill level, on the job performance, communication, efficiency, accuracy, learning agility, group performance and behavioral aspects, are being used. TRY METTL FOR FREE

9 3 1. Talent: 3. Transformation: With talent and technology transforming how organizations function, there has been a big change in how HR function and talent is perceived. Transformation of HR role from Talent Acquisition to Talent Retention to Employer Branding: With the major onus of recruitment, now lying in the hands of technology, the burden of testing candidates no longer rests with the HR. Hence HR is focused on other things such as employee experience, employee engagement and culture building activities. Transformation of Top talent demand from good to have to must have: With recruiters hiring more than ever, unemployment at a 7-year low and organizations not ready to accept anyone but the best, talented employees definitely have the upper hand. Organizations are now focusing on their brand image in terms of a good employer and working on improving the candidate experience to attract and retain top talent. In order to become talent magnets and transform their people strategy, it is imperative that companies start inculcating top technologies like online assessments and simulations in their complete HR processes including hiring, learning & development and organizational planning.

10 About Mettl Mettl is one of the largest and fastest growing online talent measurement solution provider globally, and has been at the forefront of online assessment technology since its inception in It enables organizations to build winning teams by taking credible people decisions across two key areas: Acquisition and Development. More than1800+ corporates, 24 sector skill councils / government departments and 10+ educational institutions have benefited from our award-winning solutions. Using research-backed assessments, efficient delivery on cloud platform and in-depth analytics, we deliver transformative results for our customers. It creates customized assessments for use across the entire employee lifecycle, beginning with pre-hiring screening and candidate skills assessment, training and development programs for employees/students, certification exams, contests and more. Mettl has won various accolades in the recent past - NSDC has selected Mettl as one of the 14 companies to drive innovation in the skills area in India and Thomas Friedman has written about Mettl and its technology impact in New York Times. Additionally, Mettl is a winner of the India Emerging 20 Award and the Michael Porter & IFC-Mint Key Strategy Assessment Award for Trends Technology in BFSI Enabled Industry Assessments, held annually to recognize and honor the best Indian companies in different niche categories. 80+ Countries 20+ Languages Clients 27+ Industries INDIA OFFICE Plot 85, Sector 44, Gurgaon, Haryana, India US OFFICE Mettl Technologies Inc Barksdale Professional Center, Australia Indonesia Singapore South Africa UAE UK Newark, Delaware 19711, USA TRY METTL FOR FREE contact@mettl.com