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Reduce Turnover and Increase Revenue Using Retail Assessments

March 5, 2013
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In the retail space, revenue is directly related to the employees that are on the front lines and who are in contact with customers every day. In the eyes of the consumer, they are the face of that organization. Retail organizations that have implemented employee assessments as a part of their selection process for customer-facing positions have been able to improve customer service and customer satisfaction – both of which are directly related to increased revenues.

Using a service focused pre-employment test can identify and eliminate candidates who are high risk. Organizations are able to test potential candidates for important competencies including:

  • Quality Risk

  • Stress Tolerance Risk

  • Productivity Risk

  • Absenteeism Risk

  • Turnover Risk

  • Safety Risk

  • Service Potential

  • Sales Potential

A national sporting goods retailer has been using Select International’s pre-employment assessment for customer facing service positions, ServiceFit, for the past three years. The company has tracked several key organizational metrics prior to the implementation of the assessment and then after. The data was analyzed in 2012 with magnificent results.

After this organization implemented a pre-employment assessment they saw:

  • $45,272 increase in average store sales per month

  • 23% decrease in turnover

Let’s talk about the turnover reduction. Costs associated with turnover are bigger than people think. In this example, the overall turnover was reduced by 23% - or 6,635 employees that did not need to be replaced. The direct and indirect costs of entry-level retail turnover have been estimated at approximately $9,444/employee. This means that this retailer saved more than $62 million dollars by improving the retention of its employees, not to mention the benefits of employing higher quality workers. Those are pretty amazing numbers.

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Amie Lawrence, Ph.D. Amie Lawrence, Ph.D. is the Manager of Product Development at PSI. She is an expert in the design, development and validation of psychological assessment tools. An integral member of PSI since 2000, Amie has led the development of numerous competency-based assessments, including online in-baskets, job simulations and motivational fit instruments.