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Better Selection of Restaurant Managers and Hourly Staff Saves $1.6M in Turnover Costs

Better Selection Of Restaurant Managers And Hourly Staff Saves $1.6M In Turnover Costs

Popular fast-food restaurant improves turnover by 50% after implementing OutMatch Assessment

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As a subsidiary brand of a one of the world’s largest fast-food restaurant companies, this chain is highly focused on staffing their stores with quality employees who won’t turn over quickly.

Company Quick Facts

Industry: Restaurant
Number of locations: 7,000+
Number of employees: 210,000
Solution: OutMatch Assessment

Turnover Comparison: Not Assessed vs. Strong Match

Hourly turnover rate (30-day)

  • Not Assessed: 21%
  • Strong Match: 14%

Management turnover rate (90-day)

  • Not Assessed: 33%
  • Strong Match: 16%

Hiring strong matches reduced hourly turnover by 33% and management turnover by 52%!

Challenge: Managing Store Turnover

This popular fast-food restaurant hires over 20,000 store employees per year at over 7,000 locations nationwide. To control costs, they must keep a close eye on turnover. They know that poor hires are more likely to turn over, often after only a few days in the role. Early turnover results in additional vacancies and constant churn in both hourly and management positions.

Another concern is hiring efficiency. With close to 300,000 applicants per year, the company needed to cut down on the “noise” of poor candidates, and keep operators and hiring managers focused on top-quality candidates in their applicant pool.

Solution: Assessment Predicts Employee Success

The company partnered with OutMatch for a pre-hire assessment that quickly identifies and shortlists candidates with the highest potential for success.

Using data from current store employees, OutMatch analyzed the characteristics that predict performance and tenure in this work environment. They then built a predictive, candidate-friendly assessment to identify candidates as strong or poor matches for the job.

Result: Saved $1.6M in 1 Year

After implementing the assessment, OutMatch conducted an ROI analysis and found that out of nearly 20,000 hires, those who were identified as a strong match for the job were less likely to turn over early in the role. Hourly employees who were hired without taking the assessment had a higher rate of turnover in the first 30 days—21% compared to 14%. Similarly, store managers who were hired without taking the assessment had a higher rate of turnover in the first 90 days—33% compared to 16%.

The consistently higher rates of turnover among employees who weren’t assessed for the job clearly demonstrates the impact of using the assessment. By assessing candidates and hiring strong matches for the job, the company reduced hourly turnover by 33% and management turnover by 52%.

  • Reduced Hourly Turnover by 33%
  • Reduced Mgmt Turnover by 52%
  • Prevented 750 Early Terminations
  • Saved $1.6M in Turnover Costs

Over one year, using the assessment to identify and hire strong matches prevented 750 early terminations and saved close to $1.6 million in turnover costs, compared to hiring without the assessment.*

*Using a conservative cost of $2,000 per termination for hourly employees, and $5,000 per termination for management.

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