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Over a Half-Million Saved in Hiring Costs
Company achieves 22 Return on Investment
Employment is robust in the oilfield industry and the plants of today require many hands. Workers generally command good rates
of pay, but the work can be physically and emotionally difficult. Oilfield work depends on a sense of teamwork and commitment.
In 2002, looking at turnover costs of almost two million dollars, leaders at an oilfield service company knew they had to do
something to reverse the trend. They turned to Profiles, specifically ProfileXT™ and its job-matching pattern, to assess where
they were and where they needed to be in the specific high-turnover positions of helper and operator.
Participants
Before using the ProfileXT™, the company tallied a whopping 34.5 percent rate of turnover. The high rate of departure cost the
company about $1,910,000. Managers calculated the price of replacing each helper or operator at approximately $18,900. The
average tenure of terminated employees was one year.
During a 12-month test period, leaders used the PXT™ with 245 workers at various plants in two states. They hired 90 job
applicants.
Job Match Pattern
Since they wanted to spotlight helpers and operators, leaders build a success pattern for these positions using results from PXT™. Their models were 13 top-performing
helpers and 15 operators. Hiring managers gave greater consideration to the job applicants whose overall percentage match to the appropriate ProfileXT™ Job Match Pattern
was 75 percent or greater.
Results
During the course of the yearlong test period, the company used the ProfileXT™ results to help make decisions about potential employees in its applicant pool, new hires,
employees they hired before implementation of the assessment, and workers who had both separated from the company and that the company had terminated.
Summary
After using the ProfileXT™ for one year, managers reduced helper and operator turnover from 34.5 percent to 25.3 percent. The resultant money savings totaled about
$550,000.
Company leaders further calculated that with a cost of $24,550 to implement the ProfileXT™, their return on investment was more than 22 to1.
Contact us for more information about our powerful job match products and services.
Company achieves 22 Return on Investment
Employment is robust in the oilfield industry and the plants of today require many hands. Workers generally command good rates
of pay, but the work can be physically and emotionally difficult. Oilfield work depends on a sense of teamwork and commitment.
In 2002, looking at turnover costs of almost two million dollars, leaders at an oilfield service company knew they had to do
something to reverse the trend. They turned to Profiles, specifically ProfileXT™ and its job-matching pattern, to assess where
they were and where they needed to be in the specific high-turnover positions of helper and operator.
Participants
Before using the ProfileXT™, the company tallied a whopping 34.5 percent rate of turnover. The high rate of departure cost the
company about $1,910,000. Managers calculated the price of replacing each helper or operator at approximately $18,900. The
average tenure of terminated employees was one year.
During a 12-month test period, leaders used the PXT™ with 245 workers at various plants in two states. They hired 90 job
applicants.
Job Match Pattern
Since they wanted to spotlight helpers and operators, leaders build a success pattern for these positions using results from PXT™. Their models were 13 top-performing
helpers and 15 operators. Hiring managers gave greater consideration to the job applicants whose overall percentage match to the appropriate ProfileXT™ Job Match Pattern
was 75 percent or greater.
Results
During the course of the yearlong test period, the company used the ProfileXT™ results to help make decisions about potential employees in its applicant pool, new hires,
employees they hired before implementation of the assessment, and workers who had both separated from the company and that the company had terminated.
Summary
After using the ProfileXT™ for one year, managers reduced helper and operator turnover from 34.5 percent to 25.3 percent. The resultant money savings totaled about
$550,000.
Company leaders further calculated that with a cost of $24,550 to implement the ProfileXT™, their return on investment was more than 22 to1.
Contact us for more information about our powerful job match products and services.
| Oilfield Industry A Case Study from the Max Impact Family |
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