Is Your Hiring Funnel

If you are a hiring manager, you probably have two questions when you extend an offer to a new hire: “Will the new employee work out?” and “Will they stay with our company and become a significant contributor?”

Everyone wants new employees to assimilate quickly and become successful, productive team members. Unfortunately, many never do. Studies show that around 68.06% of new hires leave within their first three months, and 90% of employees continue to explore new opportunities, even if they are not actively looking for a new job.

If you are like most business leaders, you are always looking for ways to reduce turnover because it is expensive, bad for team morale, and negatively impacts productivity. U.S. businesses lose $1 trillion annually due to voluntary turnover. Since the cost of replacing an employee is around one-half to two times the employee’s annual salary, a 100-person organization that pays employees an average salary of $50,000 per year could have turnover costs of $660,000 to $2.6 million.

Employers worldwide have learned that the best way to reduce turnover is to hire the right people in the first place—those with the right skills, who are also a good fit for their company culture. So, they are implementing hiring assessment testing solutions to take the guesswork out of hiring.

How Selective Hiring Assessments Reduce Turnover

Implementing an industry-leading hiring assessment testing solution like the eSkill Talent Assessment PlatformTM helps you reduce turnover. These are some of the ways.

  • Get Hiring Right The First Time: If employees are comfortable in a new position, they are likely to stay with your company instead of exploring other opportunities. When you use hiring assessment tests, you avoid hiring people who lack the required skills and experience and are not a good fit for the job and your corporate culture.
  • Expedite New Hire Onboarding: According to the Society for Human Resources Management (SHRM), organizations with an effective onboarding program retain 91% of new hires during their first year of work. This makes sense because your onboarding process is a new employee’s first experience with your company. Selective hiring assessment results show which skills a new hire already knows and understands. So, you can create a personalized onboarding process that skips topics and areas they know and focus on areas where they need help.
  • Be Proactive About Employee Development: Organizations that offer training and employee development programs are 200% more productive than their peers. Being proactive about employee development can help you reduce turnover by 25–30%, and hiring assessment tests are the core of an effective training and employee development program.
  • Develop an Upskilling Program: According to a recent LinkedIn survey, 94% of employees surveyed said they would stay with an organization longer if they had the opportunity to improve their abilities and learn new skills. This is why organizations like Google, Verizon, Amazon, and Marriott International are investing billions in upskilling programs. By providing employees with training and development opportunities, you help them improve their skills, fulfill career goals, and build a talent pool for the future.

How Organizations Reduce Turnover with Hiring Assessment Tests

If you want to retain top employees and reduce turnover, you need to minimize hiring mistakes, streamline onboarding, and offer employee development opportunities. These are examples of companies that use selective hiring assessment to accomplish these objectives.

  • Conservice is a large U.S. utility management and billing company that offers integrated solutions to help clients conserve energy and reduce operating costs. After implementing hiring assessment tests, it reduced time-to-hire by 25% and turnover by 20%.
  • An auto warranty company offers automotive claims administration and vehicle service contract expertise. By using Basic Office Skills tests, it can fill positions in four to six days and has reduced employee turnover from 40% to 23%.
  • TaskUs is a leading global provider of outsourced digital and next-generation customer experience services for eCommerce, healthcare, financial, entertainment/gaming, travel, and social media companies. When it started using selective hiring assessments, it improved quality of hire and reduced turnover by 25%.
  • A professional development and education company that partners with education and licensure programs that serve the real estate, health, finance, education, and appraisal industries was experiencing 99% turnover. It began using hiring assessment tests and reduced turnover by 45% in the first year.
  • SolvOne provides nationwide project deployment, dispatch execution management services, and environmental compliance coordination support for companies in the petroleum industry. It used hiring assessment tests to improve quality of hire and enhance its in-house training program, and reduced turnover by 35%.
  • GL Staffing Services Inc. is a Florida-based staffing company that has placed more than 3,000 people in jobs at over 250 companies. After it began using selective hiring assessments, it reduced time-to-hire by 66% and turnover by 30% for its clients.

Do you want to know how implementing hiring assessment tests can help you reduce turnover throughout your company? Contact us to request a demo.

Subscribe to Our Blog

Stay Social