Acceptance Insurance Improves Quality of Hire for $175,000 in Annual ROI

 

Assessments Help Achieve an 80% Pass Rate on State Licensing Exams for Insurance Agents

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About Acceptance Insurance

Acceptance Insurance is a leading provider of personal auto insurance and other related products. Acceptance is a licensed insurer in 25 states and operates 350 retail locations, as well as a call center staffed with employee-agents.

“We had these amazing tools, but they weren’t being utilized. One call to OutMatch put us on the road to success.”

-Clay Stallings, VP of Talent Acquisition and Development at Acceptance Insurance


ROI Summary

Acceptance began using assessments in 2013 to target candidates with the highest potential for success in the insurance industry.

Improved Pass Rate for Exams

  • Pass rate before OutMatch: 30%
  • Pass rate after OutMatch: 80%
  • Cost per exam: $300-$400
  • Total cost savings: $175,000

Improved 90-Day Retention

  • Retention rate before OutMatch: 50%
  • Retention rate after OutMatch: 80%

Improved Quality of Hire

  • Candidates assessed to date: 43,000
  • Screen-out rate: 30%
  • Potential bad hires avoided: 12,900

The Cost of Bad Hires

In order to sell insurance policies, employees must pass a property and casualty exam issued by their state. Before implementing assessments, 70% of new hires at Acceptance were failing these exams. The high fail rate was contributing to high turnover. Acceptance was losing half of their new hires within the first 90 days.

“Onboarding was a challenge because 70% of our new hires were failing the state licensing exam. As a result, these new hires weren’t able to continue their employment with us. That’s a big risk to take and one we were not willing to take anymore.”

-Clay Stallings, VP of Talent Acquisition and Development at Acceptance Insurance


 OVERALL IMPACT

  • Exam pass rate improved by 260%
  • Retention rate improved by 160%
  • Potential bad hires reduced by 30%

NEW HIRE SATISFACTION

  • 75% say they’re satisfied with the job
  • 75% say they’d re-accept the job

Using Assessments to Predict Success

To reduce the risk of hiring insurance agents who wouldn’t succeed in the role, Acceptance began using personality fit assessments and property and casualty skills assessments for all new hires. Acceptance quickly saw a clear relationship between assessment scores and employee retention. For example:

  • Of employees who scored 3.5 out of 5 or higher, 80% were still with the company after 90 days.
  • Of employees who scored 3 out of 5, 50% were still with the company after 90 days.

With insight into candidate fit and turnover patterns, recruiters are making more informed decisions about who to move forward, and hiring managers are seeing higher quality candidates come in for interviews.

     low scores

  mid scores

  high scores

An example of the scoring guide used by Acceptance to classify candidates. This at-a-glance look helps determine who to recommend for hire and who to remove from consideration.


Improving Retention & Quality of Hire

After implementing assessments, license exam pass rates improved from 30% to 80%, and 90- day retention improved from 50% to 80%. By screening out candidates who lacked the traits and skills to succeed as an insurance agent, the assessments have helped Acceptance avoid nearly 13,000 potential bad hires to date and save $175,000 on state licensing costs each year.



About OutMatch

OutMatch delivers the data that’s been missing from your hiring process. With clear, measurable insight into candidates and new hires, your managers will make better hiring decisions, and your HR organization will finally be able to measure the impact of hiring on your company.

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