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In 1969, The Beatles recorded ‘Don’t Let Me Down’ as part of the album Let It Be. John Lennon wrote the song as a plea to Yoko Ono, not to break his heart. As Paul remembered it, John was putting his heart on the line, becoming vulnerable, and trusting that Yoko wouldn’t let him down.

In the same way, companies are putting their heart (really, their pocket books) on the line by hiring new employees. It takes time and expenses to train new hires to become valuable members of a team. So when managers hire new employees, they are hoping that these individuals don’t let them down.

According to the Institute for Research on Labor and Employment (IRLE) at the University of California at Berkeley, the average cost to replace an hourly employee is about $4,000. This includes lost productivity, job postings, interviews, and training costs.

There are two types of employee turnover. Voluntary turnover occurs when an employee chooses to leave a job, usually because they’re starting school, moving away, or have found a better opportunity. In this case, outside forces are causing the person to move on. Involuntary turnover includes employees who are fired or stop showing up to work without warning. Here, forces surrounding employee behavior and job-fit are at work.

At Assess Systems, to aid in reducing both voluntary and involuntary turnover, we help companies select better-fit applicants, as well as give applicants an idea of required job tasks.

To demonstrate this, we looked at five companies in the restaurant industry, and compared their turnover rates for front-of-house and back-of-house workers, before and after using assessments. All of the companies are national companies that own multiple brands, operating in a multitude of locations.

Looking at the 30-day turnover rates, companies using assessments reduce turnover by an average of 27%. Looking at the 30- to 60-day turnover rates, companies using assessments reduce turnover by an average of 23%.

Different companies experience varying percentages in turnover for many reasons including company culture, availability for opportunity, etc. Thus, every company will have a different reduction in turnover. The further from the hire date, the greater chance of external factors influencing turnover. But, selecting better-fit candidates using assessments has proven to be a strong strategy for reducing turnover, and keeps employees from “letting you down.”

What is your experience with assessments? Did you see a reduction in turnover?

Let us know your thoughts in the comments below.

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