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Nationwide Retail Chain Saves $18M By Reducing Hourly Turnover

OutMatch Assessments Recommend Store Associates Who Are Most Likely to Stay 90+ Days

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With over 8,000 locations across the U.S., this retailer’s top concern is store coverage. Facing high turnover and tough talent markets, the tendency was to “just hire” in order to avoid staffing shortages.

Company Quick Facts

  • Industry: Retail
  • Number of locations: 8,000+
  • Number of employees: 60,000
  • Solution: OutMatch Assessments

90-Day Turnover Summary

90-day turnover rate:

  • Not Assessed: 59%
  • Poor Match: 60%
  • Strong Match: 52%

Not using the assessment for hiring is comparable to hiring ALL POOR MATCHES!

Problem: Constant Churn in the Store Associate Role

As a value store with a lean payroll, this retailer was constantly hiring and re-hiring store associates, and retaining good performers was a challenge. In metropolitan areas, they’re competing with higher-end retail stores for quality talent, and in rural areas, they’re competing for limited talent in a hard-to-hire market. Facing challenges in saturated as well as sparse talent markets, the tendency was to “just hire” in order to avoid staffing shortages—but, to control the turnover problem, they needed to know which candidates were most likely to stay with and thrive in their company.

Solution: Assessments Predict Employee Success

The company partnered with OutMatch for a pre-hire assessment that could identify top candidates without causing drop-off.

Using data from current store associates, OutMatch analyzed the characteristics that predict performance and tenure at this company, and built a predictive, candidate-friendly assessment to identify candidates as strong or poor matches for the job.

Result: $18M in Turnover Savings

After implementing the assessment process, OutMatch conducted an ROI study and found that out of more than 130,000 hires, those who were identified as a strong match for the job were less likely to turn over in the first 90 days of employment. Candidates who weren’t assessed and candidates who were identified as a poor match for the job had higher turnover rates, 59% and 60% respectively, while the turnover rate among strong matches was 52%.

Looking at the difference in turnover across these three groups, the company realized that not using the assessment was comparable to hiring all poor matches for the store associate position. Hiring strong matches, on the other hand, reduced turnover in this position by 12%. With 80,000 hires per year, this reduction in turnover resulted in big savings for the company and made a compelling business case against “just hiring.”

Over two years, using the assessment to identify and hire strong matches prevented nearly 10,000 early terminations and saved over $18 million in turnover costs, compared to hiring without the assessment.*

By delivering stronger retention and significant cost savings, the ROI of a candidate-friendly, predictive, and validated assessment clearly outweighs the nominal (5%) candidate drop-off.

*Using a conservative cost of $2,000 per termination

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