Most companies use some form of an assessment when hiring management and executive positions – but many don’t think it makes sense to use them at the frontline, or hourly, level. It is easy for them to justify the use of an assessment with higher-level positions because the average cost to replace a manager ranges from $10,000 to $200,000, compared to an hourly associate which averages about $3,200 for a $20,000 a year job. Many companies that I speak to are solely focused on management selection – but simply leaving hourly selection to chance can cost your company more than you think!
Here Are Three Reasons You Should Use Assessments with Hourly Employees:
1. Your frontline turnover rate is typically much higher. For some industries, such as restaurants and healthcare, frontline and hourly turnover is estimated to be 110%! According to a CAP study, for low-paying jobs under $30,000 a year, turnover costs a company 16% of the annual salary – which averages $3,328 per hourly employee! Even if you have a low 20% turnover rate, that cost adds up quickly. The ROI of hiring assessments is undeniable – they are directly linked to business metrics such as increased retention, guest satisfaction, and profit.
2. You typically have a higher volume of applicants per open position. 25% of HR Managers said they receive an average of 75 applicants per open position and 42% said they receive more than 50. Just imagine if you have more than one position open! By incorporating a hiring assessment into your selection process, you are leveraging technology and science to do work for you – screen out candidates who are unlikely to perform on the job and thrive within your culture. This allows your recruiters and hiring managers to review applications and resumes for the highest quality candidates – a process which can sometimes take hours to complete. Now that you’ve narrowed down the population, you can move candidates through the process faster, which is extremely important in a competitive labor market. If you take too much time, they are likely to find a job somewhere else.
3. They are the faces, hearts, and hands of your customer experience. There is no arguing that a stable, quality management team is essential for success – but they are only interacting with your key stakeholder part of the time. Your front-line and hourly employees are in front of the customer 90% of the time – they are the faces, hearts, and hands of your brand. They are the ones responsible for consistently delivering the intended customer (or patient) experience – why leave it to chance? Hiring assessments can measure things such as customer focus, team work, quality orientation, and emotional intelligence – the core characteristics you need to ensure your customer experience is consistently executed to your standards.
Resources:
There Are Significant Business Costs to Replacing Employees
The Real cost of restaurant staff turnover: $146,600 annually
