How ExpertRating Helps You Avoid Hiring Mistakes

Using a ballpark estimate, a business that employs 500 workers with an average compensation of $30,000 will spend $487,500 in turnover costs if its turnover rate is 13 percent. By reducing the turnover rate by one percentage point, costs are reduced by $37,500 to $450,000. (A study indicates that employee turnover rates are as high as 23.4% in some industries, which means a very large financial cost to these organizations.)

According to the Saratoga Institute, the average cost of turnover per employee is the full year's salary of the departing individual. Thus, in a situation where a company with 100 employees and an average annual salary of $35,000 experienced a turnover rate of 15%, this could mean up to half a million dollars a year just in employee turnover costs (via Optimize Magazine, January 2005.)

Your organization can avoid all these costs by properly assessing the skills, capabilities and knowledge of new hires through ExpertRating for as low as $4 per test- a tiny sum compared to the huge costs of bad hiring decisions.

The U.S Department of Labor and Statistics indicates that half of all new employees stay in their jobs for less than six months. Some are promoted, but the majorities quit or get fired. The department of labor findings makes out a case for using skills assessment as an effective tool during the employee selection process, which will help retain better people for longer. As competition intensifies, and the fight for talent increases, companies cannot simply afford to shrug off employee disengagement and the potentially high costs of turnover.

Some special considerations apply to IT hiring. IT workers vary greatly in their productivity and quality, providing a powerful incentive to employers to select the best. For example, one study found that the performance of programs written in C and C++ varied by a factor of 30% or more, depending on which programmer had written it. Because of these wide variations, organizations that can successfully identify and hire the most qualified job applicants are likely to be substantially more efficient and profitable than other organizations.

So if you want to choose the right candidates to power your organization in to the future, you need the right tools to identify the top performers from amongst the multitude of job applicants. ExpertRating skill assessments are what you need.