When an organization onboards a new Employee, two questions are at the back of every HR professional and hiring manager’s mind: “Will the new hire work out?” and “Will they stay with our company and become a significant contributor?” 

Everyone wants new employees to assimilate quickly and become productive team members. However, many never do. Approximately 68.06% of new hires leave within their first three months, and 90% of employees explore new opportunities even if they are not actively seeking a new job.

Organizations implement extensive strategies to prevent turnover because it hurts productivity and negatively affects team morale. It is also expensive. According to a Gallup survey, U.S. businesses lose $1 trillion annually due to voluntary turnover. Since the cost of replacing an employee ranges from around one-half to twice the employee’s annual salary, a 100-person organization that pays employees an average salary of $50,000 per year could have turnover costs of $660,000 to $2.6 million.

Employers worldwide have implemented pre-employment testing solutions so they can make better hiring decisions. They know that if they hire qualified candidates with the right skills, who are also a good fit for their company culture, they will reduce turnover.

How Pre-Employment Testing Helps Reduce Turnover

By implementing an industry-leading assessment solution like the eSkill Talent Assessment Platform^TM, you can reduce organizational turnover by leveraging the following best practices.

• Hire the Right People: By using pre-employment tests, you avoid hiring people who do not have the required skills for a job. If employees are comfortable in a new position, it increases the likelihood that they will stay with your company rather than explore other opportunities. Using behavioral assessments in your pre-employment testing process provides even more assurance that you are making good hiring decisions because the results tell you whether candidates will assimilate well into your company culture. 

• Streamline Onboarding: Your onboarding process is a new employee’s first experience with your company. And it is an important one. According to the Society for Human Resources Management (SHRM), organizations that have an effective onboarding program retain 91% of new hires during their first year of work. You can make onboarding a positive experience by using new hires’ pre-employment test results. Test results show which skills a new hire already knows and understands. So, you can create a personalized onboarding process that skips topics and areas candidates have mastered and focuses on areas where they need help. 

• Proactive Employee Development Program: Pre-employment testing is the cornerstone of an effective training and employee development program. This is important because being proactive about employee development can help you reduce turnover by 25–30%. According to the Association of Talent Development (ASTD), organizations that offer training and employee development programs realize productivity rates that are 200% higher than their peers. And organizations that encourage on-the-job learning for employees attract over 70% more applicants for open positions.

• Develop an Upskilling Program: Upskilling is an excellent way to build a talent pool for the future. By providing employees with training and development opportunities, you help them improve their abilities and learn new skills–a win-win for both employers and employees. According to a recent LinkedIn survey, 94% of employees surveyed said they would stay with an organization longer if it offered the chance to improve their abilities and learn new skills. So, it is not surprising that top organizations like Google, Verizon, Amazon, and Marriot International are investing billions in upskilling programs. 

How Organizations Reduce Turnover with Pre-Employment Tests

Organizations that want to retain top employees know they must minimize hiring mistakes, streamline onboarding, and provide employee development opportunities. These are examples of companies that use pre-employment tests to accomplish these objectives.

• Conservice is a large U.S. utility management and billing company that offers integrated solutions to help clients conserve energy and reduce operating costs. After implementing a pre-employment testing program, it reduced time-to-hire by 25% and turnover by 20%.

• TaskUs is a leading global provider of outsourced digital and next-generation customer experience services for eCommerce, healthcare, finance, entertainment/gaming, travel, and social media companies. After implementing a pre-employment testing solution, it improved quality of hire and reduced turnover by 25%. 

• GL Staffing Services Inc. is a Florida-based staffing company that places more than 3,000 people annually in jobs at over 250 companies. After using pre-employment testing, it reduced time-to-hire by 66% and turnover by 30% for its clients.

• SolvOne provides site-related services such as nationwide project deployments, dispatch execution management, and environmental compliance coordination support for companies in the petroleum industry. It used pre-employment testing to improve quality of hire and enhance its in-house training program and reduced turnover by 35%.

Do you want to learn how pre-employment testing can help you reduce turnover throughout your company? Contact eSkill to request a demo.

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