A 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)
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.
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!
Hiring Based on Gut Feel and Investing in Bitcoin 
