Employee Retention – OutMatch https://outmatch.com Hiring, Keeping, and Developing Great Employees Fri, 22 Jun 2018 15:57:39 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.6 Business Strategy and Organizational Culture: Tips on Aligning Them https://outmatch.com/business-strategy-and-organizational-culture/ Tue, 05 Jun 2018 19:37:03 +0000 https://outmatch.com/?p=21472 Business strategy and organizational culture: See why the conversation about talent and people is a business conversation, not just an HR conversation. Read now or listen to our Podcast!

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How to make organizational culture a business conversation, not an HR conversation

In episode 6 of the Talent Playbook Podcast, we’re joined by Tony Bridwell, author, speaker, and the Chief People Officer at Ryan, LLC. With more than 2,300 employees, Ryan is the world’s largest tax consulting company, and #71 on this year’s Fortune 100 Best Companies to Work For.

What’s the secret to becoming a Best Company to Work For? Bridwell says it’s about putting your people first. At Ryan, people are first on the company’s “big four results,” followed by clients, revenue, and IBITA. Here’s why, according to Bridwell:

You take care of your people. Your people take care of your clients. Your clients provide revenue, and if you run the business well, then you get an IBITA.”

Bridwell says that these big four results drive every decision he makes. “If I’m not hiring the right people and I lose them in 6 months or a year, that costs the firm money, which hits bottom line. From a revenue standpoint, I lose connectivity with clients, it hurts productivity, and the people experience is bad. A bad hire hits every one of my key results. Same goes for development and total rewards. If I lose people because they’re not being developed, or because the compensation isn’t right, it hits every one of my key results.”

Bridwell continues by saying that the conversation about talent and people at Ryan is a business conversation, not an HR conversation. When it comes to driving business results, the formula at Ryan is “Structure follows strategy—and culture supports it all.” Here’s how Bridwell puts it:

“If you don’t realign the structure of the organization to deliver the business strategy, you’ll end up ‘muscling a result.’ This happens so frequently. There are organizational structures that haven’t changed in years, but each year there are new strategies. People understand the strategy part because that’s what they’re taught in school. But rarely will they modify the organizational structure to deliver that strategy, and almost never will they check and adjust the company culture. When I meet with the COO and CEO at Ryan, we’re constantly talking about the cultural barriers  that will prevent us from delivering our business strategy.

The single largest strategic initiative in our firm this year is our cultural reset. We are completely resetting our company culture to deliver the biggest growth we’ve ever seen in our firm’s history.”

Read more about Tony Bridwell’s work at tonybridwell.com, or listen to the full interview on the Talent Playbook Podcast.

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Company Culture Handbook: 5 Reasons to Write One https://outmatch.com/company-culture-handbook/ Fri, 01 Jun 2018 16:13:47 +0000 https://outmatch.com/?p=21450 Your company culture handbook should be something that employees are constantly interacting with and contributing to. It should fun, engaging, and have information that’s valuable to new hires and current employees alike. Let OutMatch help you learn the steps to writing one.

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Writing a Company Culture Handbook is Not Like Writing an Employee Handbook.

A company culture handbook goes beyond company policies and PTO. Unlike the employee handbook, which often ends up collecting dust in the back of a desk drawer somewhere, your company culture handbook should be something that employees are constantly interacting with and contributing to. It should fun, engaging, and have information that’s valuable to new hires and current employees alike.

Think of your company culture handbook as a living, breathing touchstone of your company’s culture—which, by the way, exists in your organization whether you’ve defined it or not. In a recent webinar on How to Measure Your CultureDNA™, culture expert Catherine Spence defined company culture as:

A social influence system that already operates within your organization. If you don’t manage your culture, this social influence system can actually undermine your ability to effectively execute business strategy.”

That’s why culture has been getting so much attention in boardrooms around the world. In order to manage your company culture, you first have to understand what your culture is now, and what you want it to be in the future. Writing a company culture handbook is the perfect opportunity to work through these important questions, and in the process, create a valuable document for your organization.

Here are five more benefits you’ll get out of writing a company culture handbook:

  1. Demonstrate your commitment to creating a strong company culture. 
  2. Clearly define your purpose (the reason your company exists), and the impact you want to have on the world. 
  3. Educate current and incoming employees—at scale!—about the way work gets done in your company. 
  4. Empower employees to make independent decisions that align with your business strategy.
  5. Capture your company’s unique culture, with values and traditions that are true to you (and not adopted just because they sound good)

Writing a company culture handbook that’s an authentic representation of your culture doesn’t happen overnight. To guide you in this process, check out 7 Steps to Writing a Culture Handbook.

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Top 5 Emerging Priorities for HR https://outmatch.com/top-5-emerging-priorities-for-hr/ Wed, 04 Apr 2018 01:24:47 +0000 https://outmatch.com/?p=20998 A recent people management survey asked over 600 HR executives, “What are your top people management initiatives for 2018?” The answer revealed common themes, as well as emerging trends in HR. The 2018 survey, which was also conducted in 2017…

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A recent people management survey asked over 600 HR executives, “What are your top people management initiatives for 2018?” The answer revealed common themes, as well as emerging trends in HR.

The 2018 survey, which was also conducted in 2017 and 2016, added a third year of consecutive data to the study. In 2018, employee engagement took the top spot as priority #1 for companies of all sizes (over 1,000 employees and under 1,000 employees). Company culture came in second for companies over 1,000 employees, and third for companies under 1,000 employees.

These results are consistent with the culture and engagement initiatives we’re currently seeing across HR. Both company culture and employee engagement made it in the top three people management initiatives in the survey for three years running—which isn’t a huge surprise. What’s interesting, though, is the emerging priorities we’re beginning to see for the future, such as:

1. Recruiting and Talent Acquisition: How to source and select talent in a cost efficient and effective manner.

2. Change Management: How to manage HR priorities through mergers and acquisitions and/or strategic change.

3. Inclusion and Diversity: How to recruit, develop, and retain a diverse workforce. One survey respondent said,

Everyone in our industry is talking about diversity, but the numbers aren’t moving. We’re going back to the drawing board to change this.”

4. Remote Workforces: How to manage workforces that are increasingly full- or part-time remote. Another survey respondent said,

80% of our workforce work remotely or from small satellite offices. We’re struggling to maintain consistency in our strategy and culture.”

5. Retention of High Potential Employees: How to retain and develop high potential and high-performing employees.

Do these HR priorities align with yours? Get ready to pay close attention to these areas in the near future. For a full recap of the results from the 2018 People Management Survey, watch our webinar on-demand.

Top 5 Emerging Priorities for HR

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What To Do about Hourly Turnover? https://outmatch.com/what-to-do-about-hourly-turnover/ Wed, 14 Mar 2018 15:32:09 +0000 https://outmatch.com/?p=20817 Hourly turnover, especially in a candidate-driven market, can feel much like a revolving door. In an hourly work environment, the pay is low and the job isn’t all that “sticky.” (Unless you’re pulling gum off the bottom of dining room…

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Hourly turnover, especially in a candidate-driven market, can feel much like a revolving door. In an hourly work environment, the pay is low and the job isn’t all that “sticky.” (Unless you’re pulling gum off the bottom of dining room tables, or cleaning buttered popcorn from a movie theater floor.)

What we’re talking about here is the challenge of retaining employees in not-so-desirable jobs, or jobs that are easy to walk away from. That’s the reality for companies with large hourly workforces, like restaurant, retail, property management, manufacturing, call centers, and countless others. You can’t change the job, and often you can’t bump the pay. HR leaders in these industries have come to accept high turnover as a fact of life.

Maybe you can’t stop turnover at the hourly level. But what if you could slow it down? Stretching an hourly employee’s tenure from 30 days to 90 days can have a surprisingly big impact.

Think of it like this:

  • You hire A, who stays for 30 days.
  • You replace A with B, who stays for 30 days.
  • You replace B with C, who stays for 30 days.

In 90 days, you’ve made three different hires. Now compare that scenario to this one:

  • You hire Z, who stays for 90 days.

Here, you’ve only made one hire. Let’s say the cost of each hire is $2,000, conservatively. In scenario 1, you spent $6,000 in 90 days. In scenario 2, you spent $2,000 in 90 days. When you multiply that out across your entire hourly population, it adds up to big savings.

Here’s an example: A retail client of ours hires over 60,000 hourly employees per year. That’s 15,000 hires per quarter on average (not accounting for seasonality). Hiring people who turn over early (within 30 days, for example) could potentially triple this client’s number of vacancies from 15,000 to 45,000 per quarter. On the flip side, hiring people who are more likely to stay for 90+ days could reduce their number of vacancies from 15,000 to 5,000 per quarter. What a difference!

To learn more about hiring’s effect on turnover, as well as internal promotions and customer experience, check out our white paper: The Business Case for Hourly Assessments.

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American Fast-Food Chain Saves $1.6M by Reducing Turnover https://outmatch.com/american-fast-food-chain-saves-1-6m-reducing-turnover/ Fri, 02 Mar 2018 14:40:06 +0000 https://outmatch.com/?p=20550 Prevented 750 early terminations in one year

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Popular Restaurant Brand Sees a 50% Improvement in Turnover 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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Nationwide Retail Chain Saves $18M by Reducing Hourly Turnover https://outmatch.com/nationwide-retail-chain-saves-18m-reducing-hourly-turnover/ Mon, 05 Feb 2018 20:02:30 +0000 https://outmatch.com/?p=20300 Prevented nearly 10,000 early terminations in two years.

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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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3 Types of Employee Turnover – Which One Matters Most? https://outmatch.com/3-types-employee-turnover-one-matters/ Wed, 31 Jan 2018 15:45:16 +0000 https://outmatch.com/?p=20245 Reducing this type of turnover will have the greatest impact on your bottom line.

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If the constant battle to reduce employee turnover makes your head hurt, you’re not alone. Business leaders are looking to HR to deliver big results, but sweeping statements from the boardroom, like “REDUCE TURNOVER OR ELSE,” leave your team with an enormous task ahead of them.

The first thing to understand is that not all turnover is bad. By focusing on one facet of turnover, rather than all turnover, you can have a much greater impact on your organization’s turnover rate—and more importantly—on the quality of your workforce.

3 Types of Turnover

  • Desirable: When you lose a bottom performer, or even a toxic employee.
  • Okay: When you lose an employee in an easy-to-fill job, a short-term contract job, or a job with a short learning curve.
  • Regrettable: When you lose a top performer or a high-potential employee, especially to a competitor.

How to Stop Regrettable Turnover

Most regrettable turnover can be traced back to poor job fit and poor culture fit. Fortunately, job fit and culture fit are HR’s wheel house, and there are several things you can do to improve the way you match people to jobs.

  • Define what it means to be successful in your company. What do top performers have in common? Which aspects of your culture are essential for success? Look for these qualities in new hires to ensure a strong fit.
  • Encourage strong employee/manager relationships. A top reason people leave a job is because of poor managerial relationships. When you have the right managers in place, and use analytics to improve team dynamics, you’ll see less turnover across your workforce.
  • Ease the transition from one job to the next. Job transitions are danger zones. Make sure your employees are equipped with the skills and competencies they need before moving into their new role.
  • Foster employee growth and development. Top performers are most at risk of turning over when there’s a lack of development opportunities. And this is a widespread problem—according to an engagement survey, only 25% of workers feel they have ample opportunities for career growth.
  • Be transparent about employee development. Oftentimes, companies keep their list of high-potential employees confidential. But if you never tell a high potential they’ve been identified, how will they know what to focus on? Communicating your development plans shows that you’re invested in employee growth, and that you have long-term plans for keeping people challenged and engaged.

So while there are several types of turnover, regrettable turnover is the one you should be focused on. This is where you’ll have the most impact. To learn more about measuring turnover and building an strategy to reduce turnover, watch our webinar: Why Turnover is the Most Misunderstood Metric in HR.

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What Makes Your Company Great? Red Bull Inspires https://outmatch.com/makes-company-great-red-bull-inspires/ Fri, 19 Jan 2018 18:35:25 +0000 https://outmatch.com/?p=20047 Which came first – the brand or the company? The company or the brand? In the case of Red Bull, it’s their brand that drives the business. As their motto implies – “Red Bull gives you wings” – this company…

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Which came first – the brand or the company? The company or the brand? In the case of Red Bull, it’s their brand that drives the business. As their motto implies – “Red Bull gives you wings” – this company is all about pushing limits. In 2012, they literally took the sky (actually, all the way to space) by sponsoring the highest ever free-fall parachute jump from 24 miles above the Earth. And today, we continue to see them push the limits in the air, land, and water.

According to Forbes, “This adventurous spirit is a reflection of Red Bull’s freewheeling corporate culture that has enabled the company to build an enviable performance record over the last 30 years.”

Need proof that living your brand not only drives performance, but builds your talent pipelines as well? It works for Red Bull. At of the end of 2016, Red Bull employed 11,865 people in 171 countries. On their career page, they say this:

Profit is not our driver, it’s chasing our potential. It’s giving wings to people and ideas.” 

Red Bull has build a fan base around world records and epic adventures, but not all companies need to attract the thrill-seeker type. What’s your company all about? This blog post on DisruptHR should get you thinking about what makes your company great, and what inspires people within your company to strive for greatness. Then, your job in HR is to find ways to inject that message of greatness into your employment brand – so you can attract and retain talent that is perfectly suited to your brand and culture.

We’ve seen impressive cross-functional efforts in recent years between HR and Marketing to join forces as brand ambassadors, and unite the corporate and employment brand under one “roof.” If your company already has a strong brand and culture, then there’s no need to re-invent it. Rather, immerse yourself in it. Become an expert in your company’s culture and turn it into your competitive advantage. When you do, you’ll not only boost your applicant flow, but you’ll see an uptick in the right type of candidates for your company. The wrong candidates will self-select out, making it easier for Talent Acquisition to fill roles faster. You’ll also see that a strong culture leads to stronger employee engagement and retention.

For more information on leveraging your brand and culture to maximize the potential of your workforce, check out our webinar: Culture DNA: How to Measure, Endorse, and Turn it into Your Competitive Advantage.

 

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Is Employee Burnout Causing Turnover? 4 Steps to Find Out https://outmatch.com/employee-burnout-causing-turnover-4-steps-find/ Fri, 20 Oct 2017 12:57:51 +0000 https://outmatch.com/?p=19157 Identifying and preventing burnout before it becomes a turnover problem.

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What’s that eight-letter word that makes HR and talent management professionals cringe? That’s right—turnover. Some turnover may be healthy, but when your turnover rate gets too high, it can cost your company big. According to a study by the Society of Human Resource Management, employers will spend the equivalent of six to nine months of an employee’s salary just to find and train a replacement. That’s why it’s important to find out why people are leaving. Is burnout part of the problem? Here are four ways to find out:

  1. Look and learn. Many times, an observant manager will see the warning signs. Managers who have strong relationships with their employees will likely notice subtle changes in their behaviors or attitudes. Additionally, employees who have good relationships with their managers will feel more comfortable speaking openly with them about why they may be feeling burnt out.
  2. Take a poll. If you want to track burnout on an organizational level, try surveys as part of your onboarding or talent management process. Engagement surveys can help identify trouble areas. They can also target specific departments that may be suffering from stress or burnout so that you can intervene before it becomes a real problem.
  3. Watch for signs. While micromanaging your employees is never a good idea, checking in on their time spent on the job may be useful when it comes to investigating burnout. A cursory analysis or timesheet can provide key insights into how employees may be feeling. Are they working long hours? Are they missing work more often than normal? Both overwork and absenteeism can be early signs of employee burnout.
  4. Ask why. Don’t overlook the importance of exit interviews. When people leave, the easiest way to determine if their attrition is due to burnout is simply to ask. Document these responses and share your insight. Then, look for trends so you can get to the root of the problem and prevent employee burnout from happening again.

For more tips on identifying and preventing burnout, watch our webinar: How to Prevent Burnout Before it becomes a Turnover Problem.

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International Hotel Chain Reduces Turnover by 17% https://outmatch.com/international-hotel-chain-reduces-turnover-17/ Thu, 19 Oct 2017 14:38:13 +0000 https://outmatch.com/?p=19148 Lower turnover saved nearly $500,000 in the first year

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OutMatch Assessments Identify Key Hospitality Traits and Candidates with Potential for Long-Term Success

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A strategic initiative around guest experience led this popular hotel chain, with more than 800 domestic and international locations, to raise their standards of quality for the front desk staff.

Company Quick Facts

  • Industry: Hospitality
  • Number of locations: 800
  • Number of employees: 9,000
  • Solution: OutMatch Assessments

Turnover Summary: Before & After

Front Desk Turnover:

  • Before OutMatch: 59%
  • After OutMatch: 49%

Problem: Delivering on the Guest Experience Promise

Front desk employees are the face of the organization and their interactions with guests directly impact the overall experience of the hotel. However, when it came to hiring for these important positions, the company was relying on interviews alone to judge candidate quality—which often resulted in poor employee fit and high turnover. They needed a more reliable process for hiring employees who would thrive in the role and consistently deliver on the guest experience promise.

Solution: Assessments Predict Employee Success

Knowing that employees with a natural ability for guest service are more likely to deliver positive experiences and drive return visits, the company partnered with OutMatch to target customer-centric candidates in their applicant pool.

OutMatch created a tailored assessment for the front desk role based on factors that predicted success at this hotel, and the company began using it to identify candidates as strong or poor matches for the job.

Result: 17% Reduction in Turnover

In the first nine months of using the assessment, the company hired 1,343 employees from a pool of 2,612 applicants. And the impact was clear: strong matches (those recommended by the assessment) were more likely to exhibit key hospitality traits and less likely to turn over in the front desk role. After just nine months, turnover had dropped from 59% to 49%, and strong matches were scoring 11% higher on performance ratings in key areas including customer service, initiative, and work pace.

After one year, the company found that the assessment had prevented 134 terminations and saved $469,000 in turnover costs.

Seeing the significant boost in quality and retention across the front desk staff, the company soon expanded the use of assessments to other roles in the organization, including management and housekeeping.

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Call Center Sees a 25% Difference in Turnover Between Strong & Poor Hires https://outmatch.com/call-center-sees-25-difference-turnover-strong-poor-hires/ https://outmatch.com/call-center-sees-25-difference-turnover-strong-poor-hires/#comments_reply Mon, 28 Aug 2017 13:15:51 +0000 https://outmatch.com/?p=18441 Strong hires turn over 25% less in the first 60 days

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OutMatch Assessments Recommend Candidates Who Are More Likely to Stay 60+ Days

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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.

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Chili’s Saves $21M Annually by Reducing Turnover https://outmatch.com/chilis-saves-21m-annually-by-reducing-turnover/ https://outmatch.com/chilis-saves-21m-annually-by-reducing-turnover/#comments_reply Tue, 02 May 2017 14:13:25 +0000 https://outmatch.com/?p=14905 Chili's turnover beats industry average by 30%

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Assessments Improve Candidate Selection by Predicting Success & Longevity of New Hires

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About Chili’s

With 1,600 locations worldwide, Chili’s® Grill & Bar is a leading casual dining restaurant brand with a fun and energetic atmosphere where family and friends can gather over a delicious meal.

“OutMatch assessments have been so powerful in helping us with selection, we’re now using them across our management and hourly population.”

-Director of Performance Coaching, Brinker International


Summary of Turnover Savings

OutMatch assessments positively impact employee satisfaction, engagement, and job stress—factors that account for more than 50% of all turnover.

Chili’s Manager Role

  • Using assessments since 2007
  • Number of hires per year: 500
  • Replacement cost per employee: $20,000*
  • Turnover: 10% lower than industry average
  • TURNOVER SAVINGS YoY: $1M

Chili’s Hourly Role (front & back of house)

  • Using assessments since 2011
  • Number of hires per year: 30,000
  • Replacement cost per employee: $2,225*
  • Turnover: 30% lower than industry average
  • TURNOVER SAVINGS YoY: $20M

All numbers based on average figures

*Council of Hotel and Restaurants Trainers


Tackling the Turnover Challenge

Chili’s has become a trendsetter in food service by adopting innovations like tabletop tablets to enhance the guest experience. When it comes to tackling turnover, Chili’s leverages technology to identify candidates who are most likely to thrive in their fast-paced service environment.

Knowing that job fit strongly influences work behaviors and motivations, Chili’s chose OutMatch assessments because they identify best-fit candidates for different job types, including manager and hourly roles, and can target key hospitality traits like guest focus and sales ability.

“We’re using OutMatch assessments to identify those folks who are going to be a really good fit for our organization. And we’re using them to identify promotion opportunities, too.”

-Director of Performance Coaching, Brinker International


REDUCED TURNOVER

  • Managers: 10%
  • Hourly: 30%

TURNOVER SAVINGS

  • Managers: $1M YoY
  • Hourly: $20M YoY

Using Assessments to Identify Best Fit

Starting with a job success profile, OutMatch determined the work-related personality traits that best predict success and longevity for manager and hourly roles at Chili’s. Candidates for these roles are assessed against the job success profile and given a job fit score, along with a personality report and an interview guide to help hiring managers address potential problem areas.

“We’re able to give our managers so much more insight into the candidates they’re talking to so they can really see what strengths a person would bring to a role, or what challenges a person might face. It’s helping them make better hiring decisions.”

-Director of Performance Coaching, Brinker International


Reducing Turnover for $21M in Savings

Since implementing assessments, Chili’s has reduced turnover by 10% for manager roles and 30% for hourly roles, which accounts for $21M in savings year-over-year. Chili’s uses this additional capital to reinvest in employees through education, leadership programs, and more.

Thanks to improved candidate selection and other initiatives, Chili’s has experienced great success and business growth in recent years, to the effect that Chili’s stock price has doubled and tripled, reaching over $60 a share in 2014.



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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