Did You Know?

A Michigan State University study indicates that traditional hiring techniques - resume reviews, interviews, and reference checks only provide a 14% likelihood of a successful job hire. ONLY 14%! Your odds of winning a hand at Blackjack are significantly better at around 40%. If you rely only on traditional hiring practices you are truly gambling with the future success of your organization.

• In the Saratoga Institute Human Capital Report for 2000 (compiled from calendar 1999 data), the total cost per hire (external and internal hires) for all 991 participants surveyed averaged $4,588. The exempt cost per hire averaged $12,032 and nonexempt $989. Other studies show that the average cost to replace a worker in the US is $17,000.00 (AVERAGE!).

• Often overlooked in the quest for marketing efficiency is the cost of employee turnover, a problem plaguing almost all businesses in today’s tight labor market. Cost components, such as recruiting, interviewing, hiring, processing, orienting, training, supervision, and overtime paid to other associates to cover for the person who left, represent the direct costs of turnover. These direct costs are relatively easy to measure and quantify in dollars.

• However, turnover also creates indirect costs which are less easily measured but which also negatively affect profitability. Some of these less obvious costs are lost sales due to customer dissatisfaction, inexperience of new employees in suggestive selling and merchandising, decreased quality due to errors, and reduced morale of co-workers who are charged with training another new person. It takes on average 8 weeks to recruit and hire a new employee.

• Turning over one employee can cost around 1/2 of a low skilled hourly workers annual wages plus benefits, while losing a member of C-Level upper management can cost 3 to 5 times his or her annual wages and benefits.

• The stakes are clearly high when it comes to retaining good employees within your organization. A Harvard University study reports that 80% of employee turnover can be attributed to mistakes made during the hiring process.

• The implications of this are huge: up to 80% of your turnover can be blamed on hiring mistakes. The problem lies in the employee selection process. Simply put the wrong people are being hired for the wrong jobs.

• A Michigan State University study indicates that traditional hiring techniques - resume reviews, interviews, and reference checks only provide a 14% likelihood of a successful job hire. ONLY 14%! Your odds of winning a hand at Blackjack are significantly better at around 40%. If you rely only on traditional hiring practices you are truly gambling with the future success of your organization.
  

• The Michigan State University study does offer hope in regards to these horrendous odds of hiring the right employee. The effective utilization of communication, personality or behaviorial assessments are shown to increase the likelihood of a successful job hire to 75%.

• The power of these assessments is staggering and provides a powerful insight into the values, behaviors, and attributes the job candidate possesses. This information can then be compared against a Benchmark established for the job position and an informed hiring decision can now be made. The results are incredible.

• Clearly, the cost of bad hiring decisions is the critical figure to keep in mind, considering what you stand to lose from hiring poor performers. This cost is even more significant if you're hiring people who are truly incapable, contributing nothing to the company and perhaps even inhibiting others' success, leading to the need to terminate them and repeat the entire hiring process from scratch.

So What Can Be Done To Change Your Odds?

Pre & Post Employment Profiling

Job match / satisfaction can be measured by using profiling and evaluation systems. The cost of our evaluation programs is significantly less than the cost of turnover. We can profile a candidate and tell if they have the right attitude, will show up for work and won't take everything home with them. We can look at your existing employees, match their skills and personalities with open positions in the organization. We can  help you identify the right people to put on teams. When teams are balanced (one person's strengths cover another's weaknesses), results are significantly improved. Managers (and CEO's) need to know their strengths and weaknesses; as those who work with them perceive them. Profiling can show you your true strengths and weaknesses; so you can focus on improving things that need to be improved or hire to compensate for them.

Call or email today and we'll discuss strategies for improving employee hiring, positioning and retention for your organization!

 219-242-8424

info@communicating101.com

“Eliminate the costly guesswork of growing your organization!”