Reduce Turnover

Scheig Hiring & Performance System Dramatically Reduces Employee Turnover; Cost Savings Pump Up Profitability

reduce employee turnoverCompanies are showing especially dramatic reductions in annual employee turnover rates using our pre-employment system. A major Seattle grocery wholesaler, for example, was experiencing a turnover rate of over 100 percent. Within six months of implementing the Order Selector assessment as a part of their hiring process, turnover was down to 27 percent. Two years later, turnover is down to just 6 percent and is holding steady.
Reduced employee turnover is not the only benefit of using Scheig. Absenteeism and error rates also drop, and overall productivity improves.
To accomplish this, we have developed all of our Scheig Hiring & Performance Systems™ by working directly with employees identified as superior performers in their occupation. From this job analysis Scheig is able to list all critical job tasks and prioritize the attributes that differentiate the best employees from the rest.
A Fair Test – Race, Age, Gender, Education and Experience Blind
The Scheig system is a good tool for companies that want to document their compliance with affirmative action guidelines and policies. All Scheig tests are non-discriminatory, and Scheig maintains data files, question-by-question, on everyone that is tested for each of their clients. Affirmative Action reports are provided to clients on-request. Indeed, Scheig indemnifies users of the test from any EEOC challengers.
The Payback
Next to inventory costs, people are the biggest controllable expense most companies have. For an example, every time a warehouse hires someone who doesn’t make it, it costs them in the neighborhood of $2500 to $4000 – That’s PER PERSON! If a company has 30 order selectors and turnover is 50%, for instance, then they are hiring 15 new people per year. Fifteen people at $2500 is $37,500. We have customers who have reduced their annual turnover among warehouse order selectors to under five percent. That savings drops directly to the bottom line.
By screening all job candidates, interviewers can focus their time on talking with only the best prospects. Not only do they save time, but they increase the probability of choosing the right person. And research shows that superior employees can outperform their marginal counterparts by 200-300%. For smaller companies, it becomes even more critical to hire the right person; they can’t afford not to.