Employee Turnover

Reduce the cost of employee turnover and hire top performers with Profiles International

Employee turnover is inevitable, but when it is excessive, employee turnover often puts a business into the red. The costs of turnover are easy to overlook or ignore – but ignore them at your own peril.

Excessive employee turnover has obvious costs you can track, but the real costs take a greater toll. Many new employees do not become fully productive until they’ve been trained and gain experience, a process that usually takes several months. The time, effort, and money invested in those employees, walk out the door when they leave.

For a ballpark estimate of the money your organization loses to employee turnover, we suggest using a conservative one third of the total payroll of the people who turned over.

Example Employee Turnover Cost Analysis and Return on Investment:

Example One: A company has 100 employees. Turnover is only 20% per year. Employee turnover cost is 3 months wages (very conservative) Average wage is $9.00/hr. plus 20% benefits. Existing yearly employee turnover cost = 100 employees X 20% X $5,616 (including benefits) = $112,320 per year. Let’s say the Profile XT reduces employee turnover by a conservative 50%. Often the percentage is significantly more. The yearly savings is = $56,160. The yearly cost of using The Profile XT after the initial study = $7,200 Your Return On Investment (ROI) = $56,160/$7,200 = 780%!!! This is why so many organizations are using The Profile XT. Example Two: A company has 100 employees. Turnover is only 20% per year. Employee turnover cost is 3 months wages (very conservative). Average wage is $8.00/hr. plus 20% benefits. Existing yearly employee turnover cost = 100 employees X 20% X $4,992 (including benefits) = $99,840 per year. The Step One Survey II can typically reduce employee turnover by at least 20%. The yearly savings is = $19,968. (This does not include the reduction in employee theft and the increase in productivity) The yearly cost of using the Step One Survey II = $1,080 Your Return On Investment (ROI) = $19,968/$1,080 = 1,848%!!! This is why so many organizations are using the Step One Survey II.

Now think about the impact of saving that amount of money. What could your organization have done with that investment?

With Profiles International, you do not have to surrender to your employee turnover rate. Profiles International will help you identify top performers the first time, as well as match existing employees to the positions in your organization that provide the best job fit. By focusing on job fit, you will increase your organization’s retention of key employees.

Client Comments

"A major benefit we continue to see is in the area of driver turnover. The American Trucking Association reported a national average of 109% turnover for medium sized carriers. Turnover for large carriers exceeded 130%. Our Vice President recently attended a trucking symposium sponsored by our insurance carrier. When we reported our 17% from last year, we were met with looks of great disbelief. Did the use of Profiles assessments alone cause 83% driver retention? Probably not, but no doubt, Profiles tools were the main reason. This one benefit continues to save us thousands of dollars in recruitment and training costs."

- James Maloney, United Freight Service Inc.

"In the year we started using Profiles International’s assessments, we decreased turnover by more than half. How? By using the tool to determine where a person fits best in our company.  We are saving both time and money."

- Glenda Smith, the Wizard's Cauldron

"Since we started using the Profile XT assessment, we've not made any 'wrong' hiring decisions. Our employees fit well into their teams and show job satisfaction. The tool helps us 100 percent."

- Ann Freeman, First National Bank and Trust

"At one point we had a turnover rate of 40 percent. With the aid of the Profile XT and the Step One Survey assessment, we've reduced turnover to 29 percent. Based on the cost of replacing an employee, we have more than paid for the assessments."

- Michael R. Teakell, SPHR, Human Resources Manager, Superior Energy Service - Wireline Div.

More about our human resources management solutions for Employee Turnover here.   Profiles International employee screening tools help you reduce and eliminate costly, frustrating employee turnover. Profiles' employee screening tools include:

		Profiles Step One Survey II™ prescreening survey Profiles Step One Survey II prescreening survey is a pre-employment screening tool designed for executives and hourly employees to assess the abilities of job candidates regarding personal integrity, substance abuse, reliability, and work ethic.
Technical Specs:
Solves these challenges: Employees who steal money, property and/or time, Expensive employee turnover, Low energy or Non-productive employees, Use of illegal substances, Tardiness, Unexcused absences, Unauthorized internet use, Abuse of email Used For: Reducing employment theft and fraud. Reducing loss of confidential information, trade secrets, and computer data. Reducing absenteeism and tardiness. Reducing lost time due to unauthorized computer, Internet, and email usage; and Selecting honest, hard-working employees who show up for work on time. Measures: Personal integrity, Reliability, Work ethic, Substance abuse
Time to Take: 20 minutes Administration: Online or Pencil / Paper Report Types: 2 Different Reports Results Turnaround: Immediate
More about Profiles Step One Survey II here.

		Profile XT The Profile XT™ through its innovative JobFit™ technology, measures essential data an employer needs to make better hiring, training, managing and promoting decisions. The Profile XT employs advanced online technology that predicts job suitability and accurately matches people with the work they do.
Technical Specs:
Solves these challenges: Deciding who to promote, Hiring employees with Low productivity, High employee turnover, Ineffective training, Poor communication, Organizational identity confusion, Interdepartmental conflict, Profitability issues Used For: Placement, Promotion fit, Succession planning, Coaching and Self improvement Measures: Thinking and reasoning, Occupational interests and Behavioral traits Areas Measured: Learning index, Verbal skill, Verbal reasoning, Numerical ability, Numeric reasoning, Energy level, Assertiveness, Sociability, Manageability, Attitude, Decisiveness, Accommodating, Independence, Objective Judgment, Enterprising, Financial, People service, Creative, Technical, Mechanical
Time to Take: 50 minutes Administration: Online or Pencil / Paper Report Types: 9 Different Reports Results Turnaround: Immediate
More about the Profile XT here.

		Profile XT Sales™   The ProfileXTSales through its innovative JobFit™ technology, measures essential data an employer needs to the most effective sales talent acquisition and retention decisions. The ProfileXTSales employs advanced online technology that helps sales leaders predict job suitability and accurately match salespeople with the work they do.
Technical Specs:
Solves these challenges: Deciding which salespeople to promote, Hiring salespeople with low productivity, High sales talent turnover, Ineffective sales training, Poor communication, Organizational identity confusion, Interdepartmental conflict, Profitability issues Used For: Predicting sales success, Increasing revenue, Sales team placement, Sales person promotion and fit, Sales team succession planning, Sales coaching, Self improvement, and Avoiding turnover costs Measures: Thinking and reasoning, Behavioral characteristics and Occupational interests Areas Measured: Learning index, Verbal skill, Verbal reasoning, Numerical ability, Numeric reasoning, Energy level, Assertiveness, Sociability, Manageability, Attitude, Decisiveness, Accommodating, Independence, Objective judgment, Enterprising, Financial, People service, Creative, Technical, Mechanical
Time to Take: 50 minutes Administration: Online or Pencil / Paper Report Types: 9 Different Reports Results Turnaround: Immediate
More about the ProfileXTSales here.

		Profiles Sales Indicator Sales Assessment Profiles Sales Indicator sales assessment is a tool for selecting, managing, and training salespeople. It measures five key qualities of successful salespeople and predicts performance in seven critical sales behaviors.
Technical Specs:
Solves these challenges: Poor sales production, Inability to prospect effectively, Customer call reluctance, Failure to close sales Used For: Placement, Promotion fit, Succession planning, Coaching, and Self improvement Measures: Five key qualities that make successful salespeople. Predicts performance in seven critical sales behaviors. Areas Measured: Persistence, Self reliance, Energy, Sales drive, Competence, Prospecting, Closing sales, Call reluctance, Self starting, Teamwork, Building and maintaining relationships, Compensation preference
Time to Take: 15 - 20 minutes Administration: Online or Pencil / Paper Report Types: 2 Different Reports Results Turnaround: Immediate
More about the Profiles Sales Indicator here.

		Profiles Customer Service Profile Profiles Customer Service Profile measures six basic characteristics and two proficiencies that are critical to delivering excellent customer service. It is a tool to ensure everyone in your company is on the customer service team.
Technical Specs:
Solves these challenges: Inappropriate messaging about your business, Customer dissatisfaction, Legal liability issues and High employee turnover Used For: Placement, Promotion fit, Succession planning, Coaching and Self improvement Measures: Six behavioral characteristics (trust, tact, empathy, conformity, focus, flexibility); two basic proficiencies (vocabulary, numerical); company’s service perspective (the degree of alignment between an individual’s perspective on providing customer service and that expressed by the company).
Time to Take: 20 - 30 minutes Administration: Online or Pencil / Paper Report Types: Four Reports – Placement, Individual, Coaching and Company Perspective Comparison Results Turnaround: Immediate
More about Profiles Customer Service Profile here.

		ProfilesEasy™ Electronic Application System ProfilesEasy is an online employment application collection system that offers an effective method for streamlining your organization's job application process and helps facilitate consistency for every application processed. It also helps employers meet important EEOC reporting requirements.
Technical Specs:
Solves these challenges: Inefficient and disorganized application management; Exposure to litigation, fines and penalties from a poor application management process; Insecure and unreliable process for collecting and retaining information about candidates; and Inability to access candidate information from any location at any time. Used For: Streamlining and standardizing employee application management; Applicant evaluation and assessment, Maintaining EEOC requirements during the candidate evaluation process; Applicant qualification review and candidate selection; Successfully matching candidates with jobs and making critical hiring decisions
More about the ProfilesEasy Applicant Management System here.

		Profiles Workforce Compatibility Profiles Workforce Compatibility™ is a powerful tool which measures critical workplace compatibility information between a Manager (executive, director, supervisor, team leader) and their employees. Having a greater understanding of the dynamics of the relationship helps the Manager and Direct Report appreciate where their perspectives are similar and where they differ, resulting in a more productive and positive working relationship.
Technical Specs:
Solves these challenges: Low Productivity, Low Employee Morale, Employee/Manager Conflict, Employee/Manager Communication Problems, Difficult Employee Dynamics Used For: Increasing productivity, Identifying and closing compatibility gaps between Manager and employee, Improving communications between Manager and employee, Raising the level of engagement, Reducing employee turnover Measures: Self-assurance, Self-reliance, Conformity, Optimism, Decisiveness, Objectivity, Approach to Learning
Time to Take: 35 minutes Administration: Online or Pencil / Paper Report Types: 2 Different Reports Results Turnaround: Immediately
More about the Profiles Workforce Compatibility here.

For more information about how Profiles International can help you solve your Human Resource Challenges, click here.