| The challenge and cost of employee turnover is | | | | your success ratio to 26%. If your goal is to beat |
| one of the most discussed, most frustrating and | | | | one out of four odds, you need better tools! |
| most misunderstood problems businesses face. | | | | Fortunately, the science of employee |
| CEO's have identified employee retention as one | | | | assessments has produced increasingly useful |
| of their key challenges in 2005. Yet organizations | | | | tools to add to the art of hiring. While no |
| continue to struggle with this costly issue. The | | | | assessment, or even a combination of |
| science of psychological assessments has recently | | | | assessments, guarantees success, the same |
| advanced, allowing the development of much | | | | study showed that use of personality, abilities, |
| more predictive assessment tools. | | | | interests, and job matching measures can raise |
| If you do not know what your employee | | | | your success rate to 75% or better. Equally |
| turnover cost is, many experts agree that you | | | | important, valid pre employment screening |
| can come surprisingly close to the cost of a single | | | | assessment tools in all of those areas can be |
| turnover incident by simply multiplying the annual | | | | applied for well below 1% of the projected cost |
| salary for the position times 2.5 - that will cover | | | | of a bad hire. |
| productivity loss, recruiting and hiring cost, training | | | | Why don't more of us use employee |
| cost, liability, unemployment and the other 101 | | | | assessments to improve our hiring (and lower |
| hidden costs that we usually try not to think of | | | | turnover)? Part of the answer lies in lack of |
| when we lose an employee. | | | | education on the topic - not many of us have |
| Employee turnover often begins with a poor hiring | | | | even attended a single seminar on use of |
| decision. When we hire someone who is a poor | | | | scientific assessment tools. Part lies in reluctance |
| job fit, we have already begun an almost | | | | to spend any money on new processes. Part of |
| inevitable course that will end with failure - and | | | | it, frankly, is the already overwhelming load we |
| another turnover casualty. Part of the problem of | | | | place on the people who are doing the hiring - |
| poor hiring lies with our poor tools: One | | | | they are so busy bailing the boat, they can't take |
| comprehensive study of the hiring process | | | | time out to turn on the bilge pumps! To change |
| indicated that, if an interview is your only tool, | | | | the course of turnover, you must recognize that |
| you have only a 14% chance of making a good | | | | the costs are killing you, that you can change |
| hire. Add good reference checking (and we all | | | | course, and that the rewards are well worth the |
| know how difficult that can be), you can raise | | | | trouble. |