Bill Wagner's - The Entrepreneur Next Door

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  • Productivity of remaining employees declines when an employee leaves. Studies indicate that no matter what the reason for departure, after an employee is terminated, the remaining employees' productivity declines.(1)
  • The real costs associated with hiring and replacing employees are often hidden. The Chapman Study indicates a lack of understanding of the real cost associated with hiring and replacing employees. Most employers expect this cost to be close to the annual salary of the replaced employee. Often times only the direct cost is considered (and some of those are omitted), while the hidden cost is completely forgotten.(2)
  • Personality profiling increases accuracy of a successful hire to 53% - job profiling makes this figure even higher. Studies by John Hunter, Ph.D., at Michigan State University, show that the interview process is only 14% accurate in predicting a successful hire, that background and reference checking has a 26% accuracy, that aptitude and personality profiling has a 53% accuracy, and that job profiling increases the accuracy to 75%.(3)
  • Nearly 80% of job turnover is due to hiring mistakes. A Harvard University study concludes that nearly 80% of turnover is due to mistakes made in hiring.(4)

1. Book - Smart Staffing by Wayne Outlaw, published by Upstart Publishing-1998

2. Newsletter- ADSI, ACCUFAX News article "Hiring & Firing Cost Challenge Employers," July 1998 issue

3. Magazine- Human Resources Magazine article "Employee Testing Gives Employers the Hiring Edge," by Maryanne Preston, March 1997

4. Newsletter- Drake Bean Morin, Inc. March 1, 1999 news article "How Much Did that Last Bad Hire Cost You?" By Linda Neville

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