Cleveland, Ohio – December 18, 2008 -- A survey conducted of Applicant Tracking Systems users reports that 72% of respondents do not know the cost of on-boarding for their highest-turnover position and 86% of respondents are not asking candidates about their on-line employment application experience.
Participants at the 2008 Taleo World User’s Conference were asked to complete a brief survey exploring their practices regarding the candidate experience and about tracking and reporting on 120-day turnover.
Some of the survey highlights include:
• 43% of respondents are not tracking and reporting 120-day turnover rates.
• 72% do not know the cost of on-boarding for their highest-turnover position
• 86% of respondents stated they do not conduct candidate satisfaction surveys.
• 94% of respondents state they do not include a multi-media realistic job preview (RJP) as part of their candidate experience.
• 43% of respondents stated their on-line candidate experience is not positive enough to create referrals.
Staffing waste can be quantified as the company’s investment for on-boarding a new employee who quits or is terminated in less than 120 days. It is common to invest $10,000 TO $15,000 on-boarding new employees into entry level jobs such as tellers and call center agents. A loss of ten new hires in less than 120 days can easily waste $100,000.
Turnover is typically reported on a company-wide, annual basis. This practice obscures the impact of the worst hiring decisions – those which lead to turnover in 120 days or fewer. Candidates who quit or are terminated in fewer than 120 days are called False Starts. The impact of False Starts can be measured as staffing waste and the subsequent need for staffing rework.
This lack of awareness on 120-day turnover rates and on-boarding costs might suggest recruiters are not held accountable for the financial implications of their output, or the yield of their staffing process.
Staffing process improvement begins with examining the hiring process for the jobs with the highest turnover rates and collecting objective data about the candidate. Documenting the dollars spent on-boarding new employees into high-turnover positions establishes the scale of the problem and can be used to define the scope of the solution.
The survey suggests there is a significant opportunity to learn about the economic impact of 120-day turnover.
For a complimentary copy of the survey summary, please contact Joseph P. Murphy: joe.murphy[at]shakercg.com, or 216.292.0202
About Shaker Consulting Group: www.shakercg.com
A Cleveland, Ohio-based pioneer in work sample-based candidate evaluation and developers of the Virtual Job Tryout®, Shaker Consulting Group helps companies link their staffing processes to business performance. Sought out as measurement gurus, Shaker Consulting Group deploys highly branded, client-specific, talent evaluation experiences that define how success is measured in the recruiting process. Companies that have engaged Shaker Consulting Group to create customized, interactive Virtual Job Tryouts® include notable firms such as CVS, Diebold, KeyBank, Marriott, Quest Diagnostics, The Starbucks Coffee Company, and Sherwin-Williams.
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