If your organization is one of the growing number using some type of assessment tool…congratulations! Research shows you will outperform those who choose not to use them.
A well respected management consultant, Peter Drucker says, “The single most important competitive advantage will be . . . the ability of a company to attract, hold, and motivate workers . . .”
To recruit, train, promote or coach your people, how important would it be to have objective information? Here are some of the challenges for employers and the benefits that can result in a competitive advantage for you.
Benefit # 1: Increased Engagement
Studies have shown that as many as four out five workers are cast in a job that does not take advantage of their natural skills. It has become popular to “job hop” and long term loyalty in the workplace is not common. The word engagement has become a popular buzz word in business circles due in large part because a high percentage of employees are not enjoying their work and not giving it their all.
This is costly to both the organization and the individual. Employees do not stay around long enough to build their worth to the business. Organizations rarely generate profitability as it may takes six months for a new employee to reach a consistent high output. The overhead expense to find, hire, orient and train people is a major investment many businesses fail to track. Depending on the job, it can be as low as 25% of a person’s annual salary or as high as 300%.
Assessment tools designed to predict who would succeed in a job speed up the selection process. And, when applicants are hired, the increase in fit is up to 75% versus conventional results of 14% fit to a job. Engagement, retention and productivity increase substantially. This alone frees up a fortune in overhead and increases profitability, even if sales do not increase.
Subway restaurants in Eastern Canada decided to use assessments as a pre-employment tool and, in conjunction with supervisory training, reduced turnover in its participating stores by 80%. This also resulted in significant bottom line increases on same-store sales.
Benefit # 2: Improved Culture
Workers today are more vocal in expressing dissatisfaction with their job. Much of this is due to workers who are stressed due to a poor job match.True job fit brings out the best in everyone.
Best selling author on leadership, Dr. John Maxwell has said: “When people work out of their strengths 80% of the time, they do their best work and do not burn out.” When workers are forced to work on things they do not enjoy, they become less happy over time. This affects their co-workers and can create a less than positive “domino effect” throughout the organization.
Benefit # 3: Recruiting with Ease
One way to measure how attractive a business is for employees is to measure how many people apply for jobs. Those companies ranked as the best places to work typically get more applications for each job filled.
Recently at a networking breakfast I was speaking with the owner of a successful local company. He told me that his biggest challenge was finding “good people”. That meant people with the attitude, aptitude and ability to be great employees.
Most companies spend money in business development and marketing. What they consistently seem to underestimate is word of mouth that starts with employees. When you are in a social setting or even at a family dinner, how often is someone talking about his or her love for their work? When you have employees who are right for the job, the word spreads that your company is a good place to work.
Benefit # 4: Reduced Turnover
Profiling tools allow a more complete or “total” picture of an individual. Coupled with interviews and observations, profiling reveals what is on the inside of a person. Chances are that up to 66% of a company’s hiring decisions will prove to be mistakes in the first twelve months.” How many of those “mistakes” will stay with you? How will that affect the efficiency of your business?
Renowned Canadian speaker Brian Tracey has found that "Every business or position has no more than 5 to 7 critical success factors that determine how well it does." Profiling can zero in on those factors from the inside. Relying on an interview is likely to result in a successful hire only 14% of the time. How much time and expense has gone into your hiring process? Would you like a better return on your investment?
Benefit # 5: ROI
An increasing number of businesses are using multiple profile tools and are seeing a good return on their small investment. Why? Dr. Pierre Mornell, quoted in Nations Business, says, “When an employee leaves you, …you’re going to loose 2 ½ times the person’s annual salary, whether they’re entry level or senior management.” What would that mean to your company? How is the cost of turnover evaluated?
Assessments are done online, quickly and from any location and the investment is very minimal, especially considering the cost of turnover. Senior executives are increasingly aware of the value they offer and the importance of finding the right fit for a position.
#6 Developing High Performers
When a company is deciding on how to invest its training dollars in their people most want to make sure that they will see results. By incorporating assessments into the process, companies ensure they address the specific needs of their client.
For example, when we are asked to work with a leadership team, assessments can tell us in advance, how quickly each individual assimilates information, how well they will understand what they hear and how quickly or slowly we need to pace ourselves as facilitators. We are able to target the training to the very specific needs of the individual and the entire group, in addition to providing management an excellent coaching tool.
The Harvard Business Review, stated that: “In these days of talent wars, the best way to keep your stars is to know them better than they know themselves…and then use that information to customize the careers of their dreams.”
Companies are competing for that elusive 5% of the top people. How will your company attract, hire, and retain top performers? Who is your competition attracting? How will you gain the edge? By determining the unique success patterns within your organization, you can increase the probability of finding the right person for the job to 3 times out of 4, versus the typical 1 in 4 odds! In a competitive marketplace this could be a major advantage!