Hiring and retaining good people is far better than constantly hiring, training and then replacing them all over again. Discover how using hiring assessments can help you build a better organization pleasing customers and clients.
2. Chartcourse.com
Workforce Trends -- Gallup
• 86% of business leaders do not have an
adequate leadership pipeline
• 79% have a significant retention and
engagement problem
• 75% are struggling to recruit and
attract top people they need
• Only 17% feel they have a compelling
brand-culture
3. Chartcourse.com
Employee Retention
60%: Yes, I intend to
leave
21%: Maybe, so I’m
networking
6%: Not likely, but I’ve
updated my resume
13%: No, I intend to
stay
Source: Right Management
“Do you plan to pursue
new job opportunities as
the economy improves?”
4. Chartcourse.com
Why Good People Quit
Poor match between the person and
the job
Poor fit with the organizational
climate and culture
Poor alignment between pay and
performance
Poor connections between the
individual, their coworkers and
the supervisor
Poor opportunities for growth and
advancement
6. Chartcourse.com
Turnover Costs Vary
• Low paying jobs: 16% of annual salary for high-
turnover, (earning under $30,000 a year). For
example, the cost to replace a $10/hour retail
employee would be $3,328.
• Mid-range jobs: 20% of annual salary positions
(earning $30,000 to $50,000 a year). For example,
the cost to replace a $40k manager would be
$8,000.
• Executive jobs: Up to 213% of annual salary. For
example, the cost to replace a $100k CEO is
$213,000.
7. Chartcourse.com
Cost Per Hire
Departure Costs
Downtime, exit interviews, administrative time to terminate benefits etc.
?
Replacement Costs
Advertising, screening, interviewing, hiring, background checks, recruitment
costs, uniforms etc.
?
Training & Development Costs
Orientation, training time, time taken away from management.
?
Lost Productivity
Overtime, lost sales etc. It may take a new employee 1-2 years to reach the
productivity of an existing person.
?
Customer Service Costs
Errors, Bad reviews. For example new employees take longer and are often
less adept at solving problems.
?
Cultural Impact
Whenever someone leaves others take time to ask "why?“ Departure of friends,
lack of credibility etc.
?
Total Cost ???
8. Chartcourse.com
Client Example: Past 6 Months
Cost to replace a $10/hour
service employee is $3,328
22 employees
departed =
30.6% Turnover
Rate
Cost of Turnover for 6 months
22 X $3,328 = $73,216
12. Chartcourse.com
Typical Job Interviews
42% of turnover could be
eliminated with effective hiring and
interviewing techniques
Ira Wolfe
Perfect Labor Storm
The typical interview only increases
the likelihood of choosing the best
candidate by less than 2%
John and Rhonda Hunter
The University of Michigan
13. Chartcourse.com
Most Interviews are Biased
A study of 80 randomly
selected individuals who
participated in two
simulated job interviews,
58% were more likely to be
hired and 53% received
higher salary offers after
their teeth had been
whitened
Kelton Research
14. Chartcourse.com
“Get the right people on the bus, the
wrong people off the bus, and the
right people in the right seats.”
“People are NOT your most
important asset. The RIGHT
people are.”
Jim Collins
From Good to Great Right People
angela
15. Chartcourse.com
What Do the “Right”
People Look Like?
How do you know who is the Right
person for the Right Job?
Every job requires different skills and a
different type of behavior style.
20. Chartcourse.com
RESULT: Engaged Employees
Employees who have
an above average
attitude toward their
work and their
employer will
generate…
Deloitte Talent
Management Study
Job Engagement
Customer
Satisfaction
Scores
38%
higher
Profits
27%
higher
Productivity
22%
higher
21. Chartcourse.com
Good employees help
businesses thrive
• Happier customers
• Happier co-workers
• Positive word of mouth advertising
• Positive reviews and likes on the
internet
• Healthier bottom-line
22. Chartcourse.com
Benchmarking the Job
Each position has a
different talent
profile for success
The best way to select top performers is
to identify and understand the current
performers in the same position.
26. Chartcourse.com
Final Take-A-Ways
1. Measure employee satisfaction
2. Use assessments for hiring
3. Manage Your culture
4. Effective orientation program
5. Hire good managers
6. Get rid of bad managers
7. Conduct exit surveys