How $30 Can Save You $5000 and Reduce Employee Turnover
/in Assessments, General /by Sue DevendorfA simple assessment during the pre-hire phase of your process can literally save you thousands of dollars and reduce employee turnover.
Did you know that over 50% of companies / organizations are using assessments and over 94% of top performing organizations use assessments? (as reported by Aberdeen)
Are All Assessments Valid for Hiring?
There are many assessments out there and too many to compare in this article. BUT you should be aware that many popular assessments should not be used in the hiring process. Many assessments measure what we call Adaptive Behaviors where a candidate rates themselves in different scenarios. These behaviors are learned and can change.
Current psychometric technology measures Core Behaviors (or behaviors that are inherent in the individual and do not change). This will give you a more accurate picture of how someone will perform.
Many assessments only measure personality traits. We recommend measuring cognitive or reasoning which tell us how quickly a candidate learns. This can be extremely valuable for onboarding and training and indicate if someone is a good fit for a job.
Honesty and Integrity is also a measure that is so important these days.
It is also advantageous to measure a candidate’s interests. Will they like the job?
Make sure your assessment is valid for hiring and that it has a validation study to show that it does what it is supposed to do.
The Harvard Business Review published a study that shows that an assessment that uses all of the measures mentioned above ( in one assessment ) has the highest correllation to job performance of any information available in the hiring process. (NOTE: A resume doesn’t even make the list!) Finding the right person for the right job can reduce turnover.
We offer a suite of assessments which are amazingly priced for entry-level / hourly, mid-level, and upper-level jobs. Compare candidates to a benchmark.
Find the right person for the right job and reduce employee turnover with our easy to use and affordable assessments.
So How Exactly Can $30 Save You $5000?
Let’s take a look at How to Estimate the Cost of Turnover.
Research by SHRM and by the American Center for Progress show that the average cost of Turnover is about 20% of an employee’s annual wage. This is a very conservative figure but this is what I will use for comparison.
Depending on the job, these percentages will vary and there are studies that quote turnover costs as high as 50 – 60%. Also, the type of job or salary range of a job can reduce or increase the effective cost of turnover. Workers making less than $30,000 a year may be 16.1 – 20% and manager and executive levels would be considerably higher.
Think about all of the peripheral costs associated with losing an employee such as:
Cost of Temp workers and lost productivity while they learn the job
Reduced morale and lost productivity from co-workers and managers covering for the lost position
Recruiting Costs which could include an outside recruiter, resume screening, background checks, reference checks, interviews, applicant screening, assessments, physicals, drug tests, travel expenses
Onboarding and Training Costs for the new employee which may include certifications and licenses, uniforms, training to learn company procedures and computer systems, etc.
The time it takes for a new employee to become productive
If you are not using assessments, or if you are currently using assessments and would like to compare, please visit our site at PDServices.com to learn more about our next generation assessments.
Call us today at 740 397-4928 to learn how easy and inexpensive it is to get started. You’ll be glad you did!
Thus the average cost of losing an employee who makes $30,000 a year is $6000 assuming a 20% cost of turnover and $4830 assuming a 16.1% cost of turnover… And that’s how $30 can save you $5000 or more and help reduce employee turnover!
Elder Care Front Line Employees Case Study
/in Assessments, General /by Phil DevendorfOrganizations working with seniors are experiencing high turnover in elder care front line positions. This is frustrating because it is difficult to attract candidates in the first place. PDServices was invited to participate in a case study to help Elder Care organizations improve the quality of new hires and reduce turnover.
Purpose
The purpose of the study was to validate the use and value of entry level assessments for hiring front line employees in elder care.
Approach
Our approach was to create a benchmark of characteristics for high performing, long term employees. Assessments of high and low performing front line employees were completed across multiple elder care organizations. Employees were grouped by job type and performance level for analysis. The goal was to identify where high performers score in various assessment categories. This provides a roadmap or benchmark of desired scores (High, Med, Low or 1 – 18), for each assessment score.
Results
The elder care study validated the benefit in using this assessment for front line hiring and onboarding. The assessment differentiates high performers in different elder care job types and gives the hiring organization a great deal of objective information about a candidate at a remarkably low cost. Using the benchmarks should result in reduced turnover and increased productivity.
Assessment Scales
Can Do
Do they have the learning and reasoning ability to do the job?
Positive Outlook
Optimism toward people and outcomes
People Orientation
Preference in working with and socializing with people
Productivity
Stamina, endurance, and a capacity for a fast pace
Conscientiousness
To work and treat others with honesty and integrity, and to adhere to rules and policies
High Performer Ranges
- Position
- Care Givers
- Front Line
- Can Do
- High
- Med / High
- Outlook
- 11+
- 9+
- People
- 8 – 15
- 6 – 12
- Conscientiousness
- Med / High
- Med / High
Top performing Care Givers have high reasoning ability , (Can Do), as their jobs require problem solving and decision making. High Positive Outlook correlates to being able to overcome setbacks, important for Care Givers. Care Givers are mid range on People Orientation. This may seem surprising and although we want them to be pleasant, we also want them to be able to manage their time and not get caught up in small talk at the expense of their duties. Productivity is high but not so high as to lose attention to detail.
Front Line includes maintenance, housekeeping and food service. The jobs here vary a bit and the high performing scores reflect that. Maintenance is generally a problem solver so high Can Do is the best fit. Housekeeping and food service are more repetitive so medium Can Do fits. Mid to high Positive Outlook, People Orientation and Productivity are best fits for these Front Line jobs.
High Conscientiousness is a critical measure for any Care Giver or Front Line employee. These employees often have access to residents’ quarters and build trusting relationships with residents. Honesty and integrity, measured by Conscientiousness, is crucial.
Recommendation
The elder care front line study results show a high correlation between assessment scores and high performers. Using a candidate’s fit to the score ranges above will be a good predictor of fit to the job. Better job fit leads to improved retention and productivity.
It is also important to note the value of this information in on-boarding and managing new hires. If you choose to hire a candidate who isn’t a good fit, their assessment results can help target training areas. By working with the new employee to adapt to any shortcomings, you improve your chance of retaining that employee.
Given the low cost and convenience of these assessments, there is significant value in incorporating these assessments in the elder care hiring process to improve retention and productivity.
Learn more about this assessment for entry level and hourly employees.
Contact PDServices today to see how easy and affordable it is.
Contact PDServices at 740-326-4494 or info@PDServices.com
Select Entry Level Hires to Fit Your Job
/in Assessments, General /by Phil DevendorfYour entry level hires today are key to the future of your company.
“97% of employers cite that entry-level positions are important to their organizations” (from The State of Entry-Level Employment, March 2017, Rockefeller Foundation)
Most of us see the truth in the statement above. In many industries, our entry-level or hourly employees make our product, deliver our service and/or interface with our customers.
Entry level employees are directly responsible for:
Product / Service Quality
Product / Service Cost
Customer Satisfaction
The same study confirms that a majority of organizations are still relying on outdated hiring practices. These practices often lead to hiring based on first impressions and selecting candidates based on irrelevant factors. What do we need to know? Here are three areas that matter when evaluating entry level hires:
Can They Do the Job?
We are good at evaluating physical abilities like lifting and climbing. However, studies show that fitting a candidate’s cognitive abilities with the job, (ability to learn and reasoning ability), is the biggest factor in productivity and retention. Gaining insight into candidate’s cognitive abilities is critical to making good entry level hires. Lower cognitive abilities are a fit for repetitive jobs while higher cognitive abilities are needed for jobs that require continual learning, decision making and adaptation. Conversely, a candidate with high cognitive skills will be bored in a repetitive job and is likely to quit.
Will They Do the Job?
This is where a candidate’s personality traits come in. For example, understanding if a candidate is people oriented is key if the job requires customer contact. On the other hand, high sociability is a negative if the job requires working alone. Patience and focus might influence job fit for employees making a product or delivering service.
How Will They Approach the Job?
Conscientiousness is important in any entry level position. Conscientiousness tells us the candidate’s tendency to work with honesty and integrity and to follow the rules of the organization. If your employees enter customers homes or have access to sensitive information, conscientiousness is particularly important.
How Do We Improve Selection of Our Entry Level Hires?
Assessment tools targeted for entry level hires can give us good, objective measures of a candidate’s cognitive ability, personality traits and conscientiousness. They help us to evaluate a candidate’s fit with the job. These tools can be surprisingly inexpensive (~$30 per candidate) and are easy to administer. See our article title How $30 Can Save You $5000 and learn about the cost of Turnover. Visit PDServices for more information on entry level assessments. Call 740-326-4494 or email info@PDServices.com to request a complimentary entry level assessment.
Contact PDServices today to schedule a demo and learn how we can help your organization!
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