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Gregory P. SmithPresident

Chart Your Course International Inc.

Greg@chartcourse.com

ChartCourse.com770-860-9464

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Workforce Trends -- Gallup

• 86% of business leaders do not have an adequate leadership pipeline

• 79% have a significant retention and engagement problem

• 75% are struggling to recruit and attract top people they need

• Only 17% feel they have a compelling brand-culture

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Employee Retention

60%: Yes, I intend to leave

21%: Maybe, so I’m networking

6%: Not likely, but I’ve updated my resume

13%: No, I intend to stay

Source: Right Management

“Do you plan to pursue

new job opportunities as

the economy improves?”

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Why Good People QuitPoor match between the person and

the job

Poor fit with the organizational climate and culture

Poor alignment between pay and performance

Poor connections between the individual, their coworkers and the supervisor

Poor opportunities for growth and advancement

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Critical FindingIt Costs Much More to

Replace Employees Than

to Retain Them

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Turnover Costs Vary • Low paying jobs: 16% of annual salary for high-

turnover, (earning under $30,000 a year). For

example, the cost to replace a $10/hour retail

employee would be $3,328.

• Mid-range jobs: 20% of annual salary positions

(earning $30,000 to $50,000 a year). For example,

the cost to replace a $40k manager would be

$8,000.

• Executive jobs: Up to 213% of annual salary. For

example, the cost to replace a $100k CEO is

$213,000.

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Cost Per HireDeparture Costs

Downtime, exit interviews, administrative time to terminate benefits etc.?

Replacement Costs

Advertising, screening, interviewing, hiring, background checks, recruitment

costs, uniforms etc.

?

Training & Development Costs

Orientation, training time, time taken away from management. ?

Lost Productivity

Overtime, lost sales etc. It may take a new employee 1-2 years to reach the

productivity of an existing person.

?

Customer Service Costs

Errors, Bad reviews. For example new employees take longer and are often

less adept at solving problems.

?

Cultural Impact

Whenever someone leaves others take time to ask "why?“ Departure of friends,

lack of credibility etc.

?

Total Cost ???

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Client Example: Past 6 Months

Cost to replace a $10/hour

service employee is $3,328

22 employees departed =

30.6% Turnover Rate

Cost of Turnover for 6 months22 X $3,328 = $73,216

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Why are your

employees quitting?

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Most interviewing techniques are ineffective

We Must Improve Our Hiring Practices

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Typical Job Interviews

42% of turnover could be eliminated with effective hiring and

interviewing techniquesIra Wolfe

Perfect Labor Storm

The typical interview only increases the likelihood of choosing the best

candidate by less than 2% John and Rhonda Hunter

The University of Michigan

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Most Interviews are Biased

A study of 80 randomly selected individuals who

participated in two simulated job interviews,

58% were more likely to be hired and 53% received higher salary offers after

their teeth had been whitened

Kelton Research

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“Get the right people on the bus, the wrong people off the bus, and the

right people in the right seats.”

“People are NOT your most important asset. The RIGHT people are.”

Jim Collins

From Good to Great Right People

angela

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What Do the “Right”

People Look Like?

How do you know who is the Rightperson for the Right Job?

Every job requires different skills and a different type of behavior style.

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Most People

Are Hired for

their

Experience, But

Fired for Their

Attitude

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Assessments provide an unemotional evaluation of a person’s behavior, attitudes, values and

talent – qualities difficult to judge in an

interview alone.

The Missing Piece

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Assessments are good for:

Selection

Placement

Development & Coaching

Team Effectiveness

Engagement

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30%

Assessment

Results

30% Interview

10% Company

Culture30%

Background

& References

30, 30, 30, 10Rule

Selection Process

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RESULT: Engaged Employees

Employees who have

an above average

attitude toward their

work and their

employer will

generate…

Deloitte Talent

Management Study

Job Engagement

Customer Satisfaction

Scores

38% higher

Profits

27%higher

Productivity

22%higher

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Good employees help businesses thrive

• Happier customers

• Happier co-workers

• Positive word of mouth advertising

• Positive reviews and likes on the internet

• Healthier bottom-line

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Benchmarking the Job

Each position has a different talent

profile for success

The best way to select top performers is to identify and understand the current

performers in the same position.

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Turnover Reduced from 30% to 16%

Identifying Top Performers

Highest

Retention

Rates

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The Best Company Presidents

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The cost of using

assessments is a

drop in the bucket

compared to hiring

the wrong people

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Final Take-A-Ways

1. Measure employee satisfaction

2. Use assessments for hiring

3. Manage Your culture

4. Effective orientation program

5. Hire good managers

6. Get rid of bad managers

7. Conduct exit surveys

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Try an online assessment for free

http://www.chartcourse.com/free-

disc-assessment/

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Chart Your Course

International770-860-9464

800-821-2487

info@chartcourse.com

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“Helping Organizations Create Great Places to Work”