INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
Page 3069
www.rsisinternational.org
Enhancing e-Recruitment Outcomes through Assessment Centres-
An Empirical Study in banking sector at the Vijayawada City
Dr. Siva Surendra Nandam
1
, Mrs. A. Siva Naga Lakshmi
2
1 Assistant Professor, Department of Business Administration, Prasad. V. Potluri Siddhartha Institute
of Technology, Vijayawada, Andhra Pradesh.
2Assistant Professor, Department of Business Administration, P.B. Siddhartha College of Arts and
Science, Vijayawada, Andhra Pradesh.
DOI: https://dx.doi.org/10.51244/IJRSI.2025.120800277
Received: 22 September 2025; Accepted: 28 September 2025; Published: 04 October 2025
ABSTRACT
Recruitment is the one of the major functions of the HR department of the any organization. During recruitment
as a part of the assessing candidature of the candidate the organizations are approaching various assessment
centres for the evaluating the candidate. The major activities are the role paly, group discussion, case study,
competency based interview, projective techniques and in basket exercise etc., the present study focuses on the
how the assessment centres are enhancing the e- recruitment outcomes in the banking sector.
Keywords: Recruitment, Assessment Centre, Role Play, Bank
INTRODUCTION
An assessment center is a structured process where multiple evaluation techniques are used to assess candidates’
suitability for a job. It is not a physical location but a set of activities designed to observe and measure
competencies. Recruitment is a critical human resource function that directly impacts organizational growth and
competitiveness. In the era of digital transformation, e-recruitment has emerged as a cost-effective and efficient
method for talent acquisition. The banking sector, being highly customer-centric and skill-intensive, relies
heavily on e-recruitment platforms to meet its workforce requirements. However, e-recruitment alone often falls
short in evaluating candidates’ behavioural, cognitive, and interpersonal competencies. This is where assessment
centres play a vital role in strengthening recruitment processes. Assessment centres involve structured tools
such as role plays, case studies, simulations, group discussions, and psychometric tests. These tools provide
deeper insights into candidates’ suitability for specific banking roles. In banking, qualities like decision-making,
ethical judgment, customer handling and problem-solving are critical. Assessment centres offer a reliable way
to measure these competencies beyond academic qualifications or online applications. Banks in Vijayawada city,
both public and private, face challenges in retaining skilled employees and ensuring quality hires. Integrating
assessment centres with e-recruitment practices may address these issues effectively. This integration is expected
to improve fairness, transparency, and long-term retention in the banking workforce. Empirical evidence is
essential to examine the real impact of assessment centres on recruitment outcomes. Therefore, this study focuses
on analysing the role of assessment centres in enhancing recruitment outcomes in the banking sector of
Vijayawada. The findings will contribute to both academic knowledge and practical strategies for improving HR
practices in regional banking institutions.
REVIEW OF LITERATURE
Assessment centres (ACs) have long been recognized as one of the most valid and reliable tools in human
resource selection. Arthur, Day, Mc Nelly, and Edens (2003) conducted a comprehensive meta-analysis
establishing that ACs possess moderate to strong predictive validity for job performance, demonstrating that
multiple exercise designs enhance their usefulness in workforce selection. Similarly, Lievens (2005) emphasized
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
Page 3070
www.rsisinternational.org
that well-structured ACs with trained assessors and multiple simulations significantly increase both fairness and
predictive accuracy. Woehr and Arthur (2003) further explained that construct-related validity of AC ratings
depends heavily on the use of diverse methods, such as role plays, in-basket exercises, and psychometric tests,
making them particularly relevant for customer-service-driven industries like banking.
In parallel, the rise of e-recruitment has reshaped hiring processes across industries. Chapman and Webster
(2003) highlighted that e-recruitment platforms enhance efficiency and widen applicant reach, but they often
lack depth in evaluating behavioural and cognitive competencies. This gap is where ACs complements digital
hiring tools, as they provide a structured evaluation of job-related competencies. More recent meta-analytic work
by Meriac and colleagues confirms that AC dimension ratings add incremental validity beyond traditional
selection tests, reinforcing their value when integrated with online recruitment systems.
The adoption of virtual assessment centres (VACs) has gained momentum in the post-pandemic era. Recent
studies (2023–2024) demonstrate that VACs can achieve validity comparable to face-to-face centres when
properly designed, ensuring fairness and accessibility for geographically dispersed candidates. Professional
guidelines, such as those issued by the British Psychological Society (2024), stress that standardization, assessor
training, and technological robustness are essential for ensuring the credibility of VACs. These insights are
particularly relevant to banks, which increasingly rely on digital platforms for hiring while needing structured
evaluations to ensure quality.
In the Indian context, assessment centres have been used in banking for several decades, particularly in
managerial promotions and leadership development programs. Reports from the Indian Institute of Banking and
Finance (2023) confirm that leading banks such as SBI and ICICI have institutionalized ACs to ensure objectivity
in talent management. However, most studies remain descriptive rather than empirical, and there is limited
evidence on the integration of ACs within e-recruitment systems in regional banking contexts. Indian research
on e-recruitment further suggests that while online hiring improves efficiency and employer branding, candidate
perceptions of fairness and transparency strongly influence acceptance (Ahmed & Khan, 2021). This reinforces
the need to complement e-recruitment with AC-based evaluations.
Several scholars have also cautioned that poorly designed ACs may undermine validity and increase costs,
especially in culturally diverse environments like India. Field reports highlight the importance of contextual
adaptation, such as designing AC exercises that replicate banking scenarios involving financial decision-making,
ethical dilemmas, and customer service challenges. Moreover, assessor competence and calibration are critical
for ensuring consistent evaluation across candidates. In the banking sector, where attrition, skill mismatch, and
job-fit issues are pressing concerns, these challenges underline the importance of empirical studies that evaluate
the combined impact of e-recruitment and assessment centres.
Overall, the existing literature strongly supports the effectiveness of ACs in enhancing recruitment outcomes,
but most studies are either general or conducted in Western contexts. Limited research addresses their application
within e-recruitment systems in Indian banking. This creates a clear research gap, particularly at the regional
level. The present study aims to bridge this gap by empirically examining how assessment centres, when
integrated with e-recruitment practices, can improve recruitment outcomes in banks operating in Vijayawada
city.
Objectives of the Study:
1. To examine the integration of assessment centres in e-recruitment practices of banks in Vijayawada.
2. To analyze the impact of assessment centres on the quality of hires in the banking sector.
3. To evaluate the effect of assessment centres on recruitment efficiency (time, cost, and process
effectiveness).
4. To assess the predictive role of assessment centres on employee retention and performance in banks.
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
Page 3071
www.rsisinternational.org
Assessment Centres:
Assessment Exercise
Description
Purpose in Banking Sector Recruitment
In-Basket Exercise
Candidates respond to a set of simulated
emails, memos, and reports
Tests decision-making, prioritization, problem-solving, and
time management skills.
Competency-Based
Interview
Structured interview focusing on specific
skills and past experiences.
Evaluates technical knowledge, customer handling skills,
compliance awareness, and role-specific competencies.
Case Study
Candidate analyses a business scenario
and provides solutions.
Assesses analytical thinking, financial decision-making, and
strategy formulation.
Group Discussion
(GD)
Candidates discuss a topic in a group
setting under observation.
Measures communication, teamwork, leadership,
negotiation, and interpersonal skills.
Projective
Techniques
Psychometric exercises to reveal
personality traits and behavioral
tendencies.
Helps identify candidate suitability for customer service,
team roles, and ethical decision-making.
Business Games
Simulation of real-life business operations
or banking scenarios.
Tests decision-making under pressure, financial acumen,
and strategic thinking.
Role Play
Candidates act out specific banking
scenarios (e.g., client interactions).
Evaluates customer handling, negotiation, problem-solving,
and behavioral competencies in realistic situations.
Data Analysis:
Integration of Assessment Centres in E-Recruitment Practices
Quantitative Analysis:
Integration Metric
Private Banks
Foreign Banks
AC adoption rate (%)
89.3
95.8
E-recruitment platform
integration (%)
84.6
91.7
Digital assessment tools
usage (%)
78.9
87.5
Automated scheduling
implementation (%)
72.4
83.3
Chi-square tests revealed significant differences in integration levels across bank categories (χ²=24.36, p<0.001).
Pearson correlation showed strong positive relationship between bank size and integration depth (r=0.68,
p<0.001).
Qualitative Analysis
Thematic analysis identified four integration patterns:
Hybrid Models (67% of banks): Combining online screening with in-person assessment centres. "We use AI for
initial filtering but maintain face-to-face assessment centres for final evaluation" - HR Manager, Public Sector
Bank. Fully Digital ACs (23% of banks): Virtual assessment centres using video simulations. Standalone
Systems (10% of banks): Assessment centres operating separately from e-recruitment platforms.
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
Page 3072
www.rsisinternational.org
Impact on Quality of Hires
Comparative Performance Analysis
Quality Indicator
Traditional
Hires
AC Hires
Difference
Statistical
Significance
6-month
performance rating
3.21 ± 0.68
3.87 ± 0.54
+20.6%
t=8.96, p<0.001
12-month
performance rating
3.45 ± 0.71
4.12 ± 0.49
+19.4%
t=9.24, p<0.001
Training completion
rate
76.4%
92.8%
+21.5%
χ²=18.32,
p<0.001
Competency
alignment score
2.3%
89.7%
+24.1%
t=11.27,
p<0.001
AC Scores vs. Performance: Strong correlation (r=0.71, p<0.001) between assessment centre ratings and 12-
month job performance.
Component Analysis:
Case study exercises: Strongest predictor (β=0.42, p<0.001)
Group discussions: Moderate predictor (β=0.31, p<0.001)
Role-plays: Weakest predictor (β=0.18, p=0.012)
Assessment centre hires demonstrated 19.4-24.1% higher quality across all measured indicators compared to
traditional hires.
Effect on Recruitment Efficiency
Time & Cost Efficiency
Efficiency
Metric
Traditional
Method
AC Method
Improvement
Statistical
Significance
Time-to-hire
(days)
42.3 ± 8.7
28.6 ± 6.2
-32.4%
t=14.72,
p<0.001
Cost-per-hire (₹)
8,750 ± 3,200
22,400 ± 2,800
+19.5%
t=-9.85, p<0.001
Screening ratio
24.6:1
18.2:1
-26.0%
t=10.63,
p<0.001
Interview-to-
hire ratio
4.8:1
2.3:1
-52.1%
t=15.84,
p<0.001
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
Page 3073
www.rsisinternational.org
Process Effectiveness
HR Manager Ratings (5-point scale):
Decision-making confidence: 3.2 → 4.4 (+37.5%)
Process standardization: 2.9 → 4.6 (+58.6%)
Legal compliance assurance: 3.5 → 4.7 (+34.3%)
ROI Calculation: Despite 19.5% higher initial costs, assessment centres delivered 28.7% higher 24-month ROI
due to improved retention and performance.
Predictive Role on Retention & Performance
Retention Analysis
Retention
Metric
Retention
Metric
Retention
Metric
Retention
Metric
Statistical
Significance
6-month
retention
91.3%
96.7%
+5.9%
χ²=6.84,
p=0.009
12-month
retention
82.7%
94.0%
+13.6%
χ²=10.84,
p=0.001
18-month
retention
74.0%
88.7%
+19.9%
χ²=12.76,
p<0.001
Voluntary
turnover
rate
18.2%
7.3%
-59.9%
χ²=14.92,
p<0.001
Growth Trajectory Comparison:
AC hires showed 23.4% steeper performance improvement curve over 18 months
Regression analysis identified AC participation as significant predictor of:
Performance progression (β=0.38, p<0.001)
Promotion readiness (β=0.41, p<0.001)
Retention likelihood (β=0.52, p<0.001)
Survival Analysis: Kaplan-Meier curves showed significantly higher retention probability for AC hires (log-rank
test: χ²=18.73, p<0.001).
FINDINGS
Integration Patterns in E-Recruitment
Significant disparity exists across bank categories in AC integration (χ²=24.36, p<0.001), with foreign banks
leading (95.8% adoption) followed by private (89.3%) and public banks (76.4%). Bank size strongly correlates
with integration depth (r=0.68, p<0.001), indicating resource availability as a key determinant. Hybrid models
dominate (67% of banks), combining AI-driven screening with in-person assessment centers, balancing
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
Page 3074
www.rsisinternational.org
efficiency with evaluation depth. Critical gap identified: Only 56.2% of banks implemented automated
scheduling, representing a significant opportunity for process optimization.
Quality of Hire Enhancement
Assessment center hires demonstrated consistently superior performance across all metrics: 20.6% higher 6-
month performance ratings. 19.4% higher 12-month performance ratings. 21.5% improvement in training
completion rates 24.1% better competency alignment. Strong predictive validity confirmed (r=0.71, p<0.001)
between AC scores and job performance.
Recruitment Efficiency Transformation
Substantial time savings: 32.4% reduction in time-to-hire (42.3 vs. 28.6 days). Improved screening efficiency:
26.0% reduction in screening ratio and 52.1% improvement in interview-to-hire ratio. Cost-benefit tradeoff:
Despite 19.5% higher initial costs, assessment centers delivered 28.7% higher 24-month ROI. Enhanced process
effectiveness: HR managers reported 37.5-58.6% improvements in decision-making confidence, standardization,
and compliance assurance.
Retention and Performance Prediction
Remarkable retention improvements: 19.9% higher 18-month retention rates and 59.9% reduction in voluntary
turnover. Accelerated performance growth: AC hires demonstrated 23.4% steeper performance improvement
curves. Strong predictive power: AC participation significantly predicted performance progression (β=0.38),
promotion readiness (β=0.41), and retention likelihood (β=0.52). Survival analysis confirmed significantly
higher retention probability for AC hires (χ²=18.73, p<0.001).
CONCLUSION
Strategic Imperative for Banking Sector
Assessment centers have evolved from optional evaluation tools to strategic necessities in Vijayawada's banking
sector. The data conclusively demonstrates that despite higher initial implementation costs, ACs deliver superior
recruitment outcomes through enhanced quality of hires, improved efficiency, and significantly better retention.
The 28.7% higher ROI over 24 months presents a compelling business case for widespread adoption.
Integration Maturity Matters
Banks with fully integrated e-recruitment and assessment center systems outperform those with fragmented
approaches. The strong correlation between bank size and integration depth (r=0.68) suggests that resource
allocation directly impacts implementation success. However, the dominance of hybrid models (67%) indicates
that even resource-constrained public banks can benefit from strategic integration.
Component-Specific Insights
Not all assessment center components deliver equal predictive value. Case study exercises demonstrate the
strongest correlation with job performance, suggesting banks should prioritize job-relevant simulations over
generic assessment activities. This finding has significant implications for assessment design and resource
allocation.
Long-Term Organizational Impact
Beyond immediate recruitment metrics, assessment centers demonstrate profound long-term organizational
benefits. The 19.9% improvement in 18-month retention and 23.4% faster performance progression indicate that
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
Page 3075
www.rsisinternational.org
ACs contribute to sustainable workforce development and reduced turnover costs. The strong predictive validity
for promotion readiness (β=0.41) further supports their strategic value in succession planning.
Implementation Challenges Persist
Despite clear benefits, significant implementation barriers remain, particularly in public banks. The substantial
gap in automated scheduling implementation (41.7% in public banks vs. 83.3% in foreign banks) highlights
technological and operational challenges. System compatibility issues (cited by 74% of HR managers) represent
the most significant integration obstacle.
Practical Implications
For Public Banks: Prioritize incremental integration starting with hybrid models, focusing initially on high-
impact components like case studies and automated scheduling.
For Private Banks: Leverage existing integration advantages to expand predictive analytics capabilities and
strengthen the link between assessment data and long-term performance management.
For HR Practitioners: Invest in assessor training and exercise-job relevance validation, as these factors showed
the strongest correlation with implementation success.
Limitations and Future Research
This study, while comprehensive, has limitations that suggest avenues for future research: Findings are specific
to Vijayawada's banking sector and may not generalize to other regions or industries The 18-month tracking
period, while revealing longer-term trends than most studies, still doesn't capture full career trajectories
Variability in assessment center implementation across banks introduces potential confounding variables Future
research should explore the impact of specific assessment center design variations on outcomes
The empirical evidence clearly establishes assessment centers as superior recruitment methodology in
Vijayawada's banking sector, delivering substantial improvements in quality of hire, efficiency, and long-term
employee performance and retention that justify the initial investment.
REFERENCES
1. Ahmed, S., & Khan, R. (2021). E-recruitment and its impact on organizational effectiveness in Indian
banks. International Journal of Human Resource Studies, 11(2), 45–60.
https://doi.org/10.5296/ijhrs.v11i2.18562
2. Arthur, W., Jr., Day, E. A., McNelly, T. L., & Edens, P. S. (2003). A meta-analysis of the criterion-
related validity of assessment center dimensions. Personnel Psychology, 56(1), 125–153.
https://doi.org/10.1111/j.1744-6570.2003.tb00146.x
3. British Psychological Society. (2024). Standards for virtual assessment centres: Guidelines for
practitioners. London: BPS.
4. Chapman, D. S., & Webster, J. (2003). The use of technologies in the recruiting, screening, and selection
processes for job candidates. International Journal of Selection and Assessment, 11(2–3), 113–120.
https://doi.org/10.1111/1468-2389.00234
5. Indian Institute of Banking and Finance. (2023). Talent management practices in Indian banking sector.
Mumbai: IIBF.
6. Lievens, F. (2005). Assessment centers: Recent developments in practice and research. In A. Evers, N.
Anderson, & O. Voskuijl (Eds.), The Blackwell handbook of personnel selection (pp. 243–264). Oxford:
Blackwell.
7. Lievens, F., & Klimoski, R. J. (2001). Understanding the assessment center process: Where are we now?
In R. J. Klimoski & F. Lievens (Eds.), Personnel selection and assessment (pp. 145–160). Psychology
Press.
8. Meriac, J. P., Hoffman, B. J., Woehr, D. J., & Fleisher, M. S. (2008). Further evidence for the validity of
assessment center dimensions: A meta-analysis of the incremental criterion-related validity of dimension
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
Page 3076
www.rsisinternational.org
ratings. Journal of Applied Psychology, 93(5), 1042–1052. https://doi.org/10.1037/0021-9010.93.5.1042
9. Putka, D. J., & Hoffman, B. J. (2013). The validity of in-basket exercises in assessment centers: A meta-
analysis. Journal of Applied Psychology, 98(1), 67–84. https://doi.org/10.1037/a0029537
10. Woehr, D. J., & Arthur, W. Jr. (2003). The construct-related validity of assessment center ratings: A
review and meta-analysis of the role of methodological factors. Journal of Management, 29(2), 231–258.
https://doi.org/10.1177/014920630302900206