OutMatch Assessments Recommend Candidates Who Are More Likely to Stay 60+ Days
A fast-growing, California-based energy company found that high turnover in the sales organization was keeping them from hitting their aggressive growth targets.
Company Quick Facts
- Industry: Energy
- Number of locations: 85
- Number of employees: 12,000
- Solution: OutMatch Assessments
ROI Summary: Turnover Comparison
Turnover rate in the first 60 days:
- Poor Matches: 25%
- Strong Matches: 20%
Strong matches turn over 25% less than poor matches in the first 60 days of employment.
Problem: High Turnover in the First 60 Days
The company was hiring salespeople for entry-level call center positions, but when considering
candidates without any sales experience, the company had no way of knowing who was most likely to succeed in the role, or who was most likely to stay long enough to contribute.
The company needed to reduce turnover, especially in the first 60 days, so they could recoup hiring and training costs, and avoid investing in salespeople who were likely leave before driving any revenue to the business.
Solution: Assessments Predict Employee Success
Knowing that salespeople who are successful in the job are less likely to turn over, the company
began using OutMatch assessments to separate strong matches from poor matches in their applicant pool.
The company found that 22% of candidates were not a good match for their organization. With this
insight, they were able to avoid poor matches and invest in candidates with higher potential for success.
Result: 25% Difference in Turnover
After implementing the assessment, OutMatch conducted an ROI study and found that during an 8-month period, strong matches (salespeople recommended by the assessment) had a 25% lower turnover rate than poor matches (salespeople not recommended by the assessment) in the first 60 days of employment.
Based on this data, the company believes that if they avoid hiring poor matches for the 2,800 call center positions they fill in a typical year, they can prevent 43 early terminations and save $150,000 in turnover costs per year.
Seeing the significant difference between strong and poor matches, and the impact it has on the bottom line, the company plans to hire more strong matches in the future.