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.

Profiles International employee screening tools help you reduce and eliminate costly, frustrating employee turnover.

Learn more about our human resources management solutions for employee turnover here.