Do you know how much it costs your company to hire an employee, train them, and then replace that employee if they do not work out?
How about repairing any damaged relationships this individual may have caused with customers or even other co-workers? It costs five times more to find a new customer than it does to get repeat business from a satisfied customer. Your bottom line takes a hit when an expensive company asset like an employee is taken off the books.
Employee Turnover is Ridiculously Expensive
There are direct and indirect costs of hiring an employee.
- Consider not just salary, but the time and money spent on the advertising, candidate interviews, and job training – that has to be done all over again!
- There are also lost productivity costs that result from disruption to projects and teams. Statistics from the Center for American Progress:
- Replacing a $50,000/year worker costs $10,000 – $17,000 on average in the US.
- Lower paid employees can cost your company up to 16% of their annual pay to replace.
- Yes, a $20,000/year employee can cost you up to $3,200 to replace!
- Management positions can cost 150% of annual salary to replace.
- Sales personnel cost as much as 200% of annual salary to replace.
- Executives top the chart at 213% of annual salary to replace.
The impact of losing any employee adds up quickly.
Stop the Flow of People and Money Out of Your Organization
There is an answer to improving your hiring and reducing the cost of bad hires. Taking a fresh look at internal policies is a productive place to start. Talking to current employees about the work environment can be revealing. However, changing the selection and hiring process is potentially the surest way to improve your turnover metrics.
Employee Selection – Wiring that Matters
An employee might have the right knowledge, skills, and abilities that align with the job, but is that enough? Surprisingly no, it is not enough. The best employees will also have the right internal ‘wiring’ that matches the job.
More than skills, understanding a candidate’s natural wiring will tell you how well they will fit with your company culture, what truly motivates them, and how they will perform in that particular role and under the circumstances and pressures of that position.
ROI and the AcuMax Index, an Affordable Solution
Let’s look at how the AcuMax Index® helped reduce turnover and safeguard the bottom line for two very different companies.
SAT Plating is a small, fast-paced manufacturing company. They provide research, design and production for plating on high-quality plastic components used in the manufacture of products like medical devices and automobiles. In an enterprise like this, having the right people in the right roles is critical to running the shop floor efficiently.
SAT Plating used to hire as many as ten people, hoping that just one would stick with the job. Now they use the AcuMax Index in the selection process to match the best candidates to the available positions. Their turn-over rate dropped like a rock. They also use the index to help all their employees gain a deeper awareness of their own strengths and weaknesses, as well as the strengths and weaknesses of their colleagues. This has enabled the entire organization to operate more profitably…while reducing turnover.
“It’s a fast-paced environment…now that we have the right people in the key spots, everything has improved.” – Will Wallace, Manager
The Orlans Group is a law firm specializing in real estate law, title, appraisal, land research, real estate auction services and business solutions. Their clients include retail and institutional investors, banks, energy companies, law firms and government agencies.
The Orlans Group tried several pre-screening instruments, but none of them was consistently accurate. Since using the AcuMax Index, they have been able to reliably identify and hire candidates who matched the job profiles of their open positions. Every new hire has turned out to be an outstanding employee and the right person for both the position and the company culture.
“…all the candidates that matched the position profiles have been great fits…it’s been the most successful test we’ve used yet.” – Melissa Hattle, Human Resource Recruiter
Why AcuMax Improves Your Bottom Line
There are many assessments that measure behavior or personality, which can change. If what you are measuring can change, you’re not getting the results you need to make the best hire. The AcuMax Index is the ONLY assessment that measures human wiring and that never changes.
Personality and Behavior Change with Time and Circumstances.
Like most people, you have probably noticed that your personality and behaviors evolve as you learn more about the world. If behavior and personality has changed in you over the years, don’t you think that a candidate could temporarily change their behavior during the interview process?
This is probably the reason why 90 days after hiring that ‘perfect candidate’, you sometimes find yourself wondering who this person really is and why they are not performing to expectations!
Natural Wiring Answers the ‘Why’ and the ‘How’
The AcuMax Index is designed, first and foremost, to reveal critical information about how a candidate is ‘wired’ and how they will respond under various conditions. Information like their preferred communication style, how much autonomy they need, how they process information, their comfort levels with risk, what level of information they need to make decisions… etc. Information that is a much better prediction of performance and culture fit.
Knowing these things can help your organization at the time of the hire – and after the hire as well to:
- Build strong teams
- Run more productive meetings
- Resolve conflicts and Improve communication
- Better motivate and manage employees
- Improve coaching, training, and career development
All things that reduce the clutter that detracts from efficient operations, effective movement within the company and – of course – the bottom line!
Minimize Uncertainty with AcuMax
The AcuMax Index helps hiring managers match candidates with the positions for which they are trying to fill. This scientific approach leads to better hiring decisions that reduce all forms of turnover.
Boosting the bottom line is one of the hidden benefits of reducing turnover. Many companies learned the hard way that the outdated and industrial-age hiring models are seriously flawed. The notion that qualified people will line up for available positions is wrong. People might be lining up at the hiring manager’s door, but are they an excellent match for the job? To answer that question, you need to know how an applicant is wired.
Try it for Yourself
Skeptical? — We challenge you to take the assessment for yourself (5 minutes) and test us. Even better, take it with your whole leadership team. Or do both! There is no cost or obligation and our experts will provide a complimentary consultation to review the results and implications for your team and your organization. We know from experience that you will be amazed.
Already convinced? —Are you already convinced that this is an issue that can be fixed? Call us!
We would be happy to show you how the AcuMax Index can help you understand what makes your top performers so good, and how to replicate them!
844-228-6291 (toll-free) – info@AcuMaxIndex.com