When a company hires a new employee, there are two questions in the back of every HR professional and hiring manager’s mind. The first is, “Will the new hire work out?” and the second is, “Will they stay with the company long enough to make a significant contribution?”
Everyone wants new hires to adjust to their new role and become productive team members as soon as possible. Unfortunately, many do not. According to a BambooHR survey, 68.06% of new hires leave within the first three months, and 90% of employees remain open to new opportunities even if they are not actively looking for a new job.
All businesses want to prevent turnover because it is time consuming and expensive to screen and hire employees. And if they make a bad hire, it can hurt productivity and morale, and they must incur additional expenses to find a replacement.
A Gallup survey shows U.S. businesses lose $1 trillion each year due to voluntary turnover, and the cost of replacing an employee can range from one-half to two times the employee’s annual salary. So, a 100-person organization that pays employees an average salary of $50,000 could have turnover and replacement costs from approximately $660,000 to $2.6 million annually.
How Pre-Employment Testing Helps Reduce Turnover
By implementing an industry-leading assessment solution like the eSkill Talent Assessment PlatformTM, you can reduce turnover throughout your organization by leveraging the following best practices.
- Avoid Hiring the Wrong People: Using pre-employment tests is one of the best ways to avoid hiring people who do not have the required skills for a job. This increases the probability that they will remain with your company for the long haul. Coupling pre-employment tests with behavioral assessments provides even more assurance that you are making sound hiring decisions because you can evaluate whether candidates will assimilate well into your company culture.
- Streamline Your Onboarding Process: Your onboarding process is a new hire’s first interaction with your company. You can make onboarding a positive experience by using pre-employment testing to determine which skills the new hire already knows so you can focus on areas where s/he needs more help. A study by the Society for Human Resources Management (SHRM) found organizations with an engaging onboarding program retain 91% of new hires during their first year of work.
- Implement an Employee Development Program: An effective training and employee development program can reduce turnover by 25–30%. According to the Association of Talent Development (ASTD), employee productivity is 200% higher at companies that offer training and employee development programs. Plus, organizations that enable employees to learn on the job attract over 70% more applicants for open positions. HR and Learning/Development leaders can also use pre-employment testing to assess skills and knowledge gaps company-wide and create customized training programs for employees.
- Develop an Upskilling Program: Upskilling provides employees with training and development opportunities that help them improve their abilities and learn new skills. Since this is a win-win for employers and employees, it is no surprise that organizations such as Google, Verizon, Amazon, and Marriot International have invested billions in upskilling programs. Employees are more loyal to organizations that provide training and development opportunities. According to a recent LinkedIn survey, 94% of employees surveyed said they would stay with an organization longer if offered the chance to improve their abilities and learn new skills.
How Companies Use Pre-Employment Tests to Reduce Turnover
Organizations that want to retain top employees know the eSkill Talent Assessment PlatformTM can help them minimize hiring mistakes, revamp their onboarding process, implement a proactive employee development program, and launch an upskill program. These are examples of eSkill clients that use pre-employment tests to accomplish these objectives.
- Conservice is the largest utility management and billing company in the U.S. and offers integrated solutions that help clients conserve energy and reduce operating costs. After implementing a pre-employment testing program, it reduced time-to-hire by 25% and turnover by 20%.
- 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. It improved quality of hire and reduced turnover by 25% after implementing pre-employment tests.
- GL Staffing Services Inc., one of Florida’s largest privately owned staffing companies, places more than 3,000 people in jobs at over 250 companies. It used pre-employment testing to reduce time-to-hire by 66% and turnover by approximately 30% for its clients.
- Senior Management Advisors (SMA), a manager of full-service independent living, assisted living, and Alzheimer’s communities, uses customized pre-employment tests to minimize hiring mistakes and reduce turnover.
Are you ready to learn how pre-employment testing can help you reduce turnover across your company? Contact us to request a demo.