Results
Results of this process are summarized in the graph below. Overall, retention beyond June 30
increased from 27 percent to 58 percent with use of the strategic hiring system. Results were
even more striking in the area of involuntary terminations; a reduction from 31 percent to only
17 percent involuntarily terminated in the study period. As shown in the sidebar, the program
has proved to be very cost-effective.
Costs and Benefits:
Prior to implementation of the system, the employer had estimated the cost per turnover in the
reservations center at $4,500. Using this estimate, and the actual cost of use of the
assessments, the return on investment of the entire program (including preliminary
pattern-building and analysis) was better than $5.45 returned for every dollar invested. Given
the even higher costs associated with firings, the true ROI was probably much higher.
Contact us to learn how to duplicate this success story in your organization.
| ©2007 Max Impact Corporation. All rights reserved. |
Strategic Hiring System pays off in reservations call center
Retention increased from 27% to 58% with use of the strategic hiring system.
A major hotel management firm operates a reservations call center with a primary mission of customer
service, and a secondary sales function. The call center experiences wide seasonal workload fluctuations,
and has traditionally begun a major round of hiring each winter. Both performance and turnover have
presented challenges in this environment. In 2003, reservations agents hired in the winter campaign had
only a 27 percent chance of remaining on the job beyond June 30. This required additional and continued
hiring efforts through the spring and summer seasons—times of year that present additional hiring
challenges in their employment market.
In midwinter, by contrast, the company had an abundance of applicants for their open positions.
The challenge
The challenge was to design and implement a strategic hiring system, with the goal of increasing retention and reducing the necessity of additional hiring
through the spring and summer.
The solution
The chosen system was a two-stage strategic system beginning with a low-cost honesty-integrity measure (the Step One Survey, or SOS). Once a
candidate was screened into the finalist pool, a targeted job-fit measure was used to predict the probability of success (the Customer Service Perspective,
or CSP).
Because the company enjoyed a large applicant pool for the available openings (roughly 10 applicants were screened for each person hired), they chose a
relatively high criterion for the SOS scores, seeking to consider only the top 35 percent for inclusion in the finalist pool.
For the job fit analysis of the finalists, call center managers chose five Top Performers, and a success pattern was constructed, using the Customer Service
Perspective assessment. Finalists took the CSP, and were matched to the Top Performer pattern. Candidates who matched at less than the 70 percent
level were not considered further for employment. Scores of 70 percent or better included the finalist in the interview process, using the CSP interview
guide in the decision process.
Retention increased from 27% to 58% with use of the strategic hiring system.
A major hotel management firm operates a reservations call center with a primary mission of customer
service, and a secondary sales function. The call center experiences wide seasonal workload fluctuations,
and has traditionally begun a major round of hiring each winter. Both performance and turnover have
presented challenges in this environment. In 2003, reservations agents hired in the winter campaign had
only a 27 percent chance of remaining on the job beyond June 30. This required additional and continued
hiring efforts through the spring and summer seasons—times of year that present additional hiring
challenges in their employment market.
In midwinter, by contrast, the company had an abundance of applicants for their open positions.
The challenge
The challenge was to design and implement a strategic hiring system, with the goal of increasing retention and reducing the necessity of additional hiring
through the spring and summer.
The solution
The chosen system was a two-stage strategic system beginning with a low-cost honesty-integrity measure (the Step One Survey, or SOS). Once a
candidate was screened into the finalist pool, a targeted job-fit measure was used to predict the probability of success (the Customer Service Perspective,
or CSP).
Because the company enjoyed a large applicant pool for the available openings (roughly 10 applicants were screened for each person hired), they chose a
relatively high criterion for the SOS scores, seeking to consider only the top 35 percent for inclusion in the finalist pool.
For the job fit analysis of the finalists, call center managers chose five Top Performers, and a success pattern was constructed, using the Customer Service
Perspective assessment. Finalists took the CSP, and were matched to the Top Performer pattern. Candidates who matched at less than the 70 percent
level were not considered further for employment. Scores of 70 percent or better included the finalist in the interview process, using the CSP interview
guide in the decision process.
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