How To Save $380,000
$300,000 is the average cost of a hiring mistake or a failed promotion.
For senior executives it’s actually higher: 3-4 times their total remuneration package.
To ‘save’ that $300,000 and reduce your risk when hiring, promoting or transferring personnel, the secret is to predict the person’s performance. In brief, prediction = power
Professionally speaking, I favour Executive Assessments (not mere testing) because they are 4 times more accurate than interviews when it comes to predicting a person’s success at work.
More than 231 studies in both the US andEurope, over 85 years, confirm that psychometric assessment consistently predicts job performance well:
- for men and women, in all job types, in both training and performance
- for both the first few weeks of employment and even 5 years out (the longest study ever done).
- better for management than non-management roles.
- what costs $80,000 per attempt,
- has less than a 20% chance of success,
- and is done by every Australian company whether they want to or not?
So that makes 380,000 good reasons (or $380,000) to use an assessment procedure in your hiring process.
That’s why simply finding candidates won’t help you very much whereas forecasting their accomplishments will.
Besides, just think what you can do with the $380,000 you just saved.