PsyMax Solutions Newsletter: Trends in online HR solutions
Good Hiring Affects Financial Performance
In This Issue:
- Human Resource News and Trends: Good Recruiting and Selection Practices Directly Affect Financial Performance
- How Expensive is Employee Turnover?
- Calculating Your Employee Turnover Costs
- Utilizing the PsyMax Solutions Selection Toolset to Select and Retain Top Talent
- Public Eye: PsyMax Solutions in the News
1. Human Resource News and Trends: Good Recruiting and Selection Practices Directly Affect Financial Performance
Good recruiting and selection practices affect the financial performance of a company according to the Watson Wyatt 2005 Human Capital Index. The Human Capital Index suggests that companies who have proactive recruiting and selection practices deliver an increase in total returns to shareholders. Some of their findings:
- Companies that are able to fill positions within two weeks provide a total return of 59 percent versus 11 percent at companies that require at least seven weeks to fill job positions between 2002 and 2004.
The 2005 Human Capital Index study is based on an extensive survey of human resource practices at 147 North American companies with a track record of at least three years of shareholder returns, 1,000+ employees and a minimum of $100 million in revenues or market value.
Source: Watson Wyatt 2005 Human Capital Index
2. How Expensive is Employee Turnover?
Hiring the wrong person can cost at least 150% of an employee's annual salary, not to mention the negative effects on a company's customers and general reputation. As the costs of doing business rises, employee turnover cost increases. The costs of recruiting and selecting people, lost productivity, reduced sales and revenue opportunities from non-filled positions, and costs associated with training on both company policies/procedures and products/services are all costs that need to be factored into determining a company's turnover costs. To estimate turnover costs, a company must consider the following three elements:
Recruiting/Selecting. The recruiting and selection process includes sourcing, recruiting and selecting job applicants through internal recruiting processes. Also, third-party recruiting, advertising and job postings, pre-screening and psychological behavioral testing and relocation costs and signing bonuses are some of the major costs associated with the recruiting and selecting process.
Vacancy. While a position is vacant, the productivity of the former employee is lost. Therefore, the productivity of the company is reduced. Also, a company must factor in lost sales and revenue opportunities due to lack of communication and follow-up with new and existing customers.
Training. Whenever new employees start a job, they are never 100% efficient. There are costs associated with training time and resources to get new employees effectively doing their job.
3. Calculating Your Employee Turnover Costs
Do you want an accurate estimate of what your company's turnover costs is? If so, PsyMax Solutions' team will help guide you through the process of determining this important financial figure. We will meet with you and your staff, gather information and provide an accurate estimate of how much employee turnover is costing your company. This will help your company identify areas of improvement within your recruiting and selecting process and assist in the development of your Human Resource, talent acquisition and succession management plan.
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4. Utilizing the PsyMax Solutions Selection Toolset to Select and Retain Top Talent
Selection is one of the most important challenges human resource professionals face on a day-to-day basis. Many surveys say that the number one issue facing business is finding and keeping good employees.
PsyMax Solutions can help you minimize the subjectivity that leads to poor hiring decisions. Our online on-demand suite of employee selection tools can help your company:
- Reduce employee turnover
- Increase productivity
- Improve customer service
- Increase revenue
The PsyMax Solutions Work Style AssessmentSM (WSA) inventory for employee selection gives you a validated and reliable on-demand solution to easily and accurately select the right person for the right job for your organization. Independent studies show that organizations that leverage the PsyMax selection products enjoy profit gains and a positive impact on their bottom line.
To request additional information about how the PsyMax Solutions selection reports and programs can help you select and retain top talent, please contact us.
5. Public Eye: PsyMax Solutions in the News
PsyMax Solutions' Was Featured in Health Executive Magazine's August 2005 Issue. The story titled "People Tools" offers detailed advice on beefing up your organization's executive leadership development and succession planning process. To receive a copy of this article, please contact PsyMax Solutions.
Tri-C's Corporate College Selects PsyMax Solutions to Provide an On-Demand Leadership Tool for Participants in the YWCA/Corporate College Women's Leadership Bootcamp Program. PsyMax Solutions will provide its Leadership Perception Profiler (LPP) 360° assessment solution to help participants in this program develop leadership skills to their full potential. Read more about this exciting leadership initiative. To request additional information about how the PsyMax Solutions Leadership Perception Profiler (LPP) can help you develop leaders within your company, please go to www.psymaxsolutions.com/campaigns/lppinfo.asp
PsyMax Solutions Presents at the Corporate College "Entrepreneur on the Cuyahoga" event. Fred Elabed and Thad Meese delivered a presentation on the importance of hiring and developing people within an entrepreneurial culture. PsyMax Solutions also demonstrated its assessment tool to participants. Participants in this innovative program will be given the opportunity to complete PsyMax Solutions' Work Style AssessmentSM inventory. The "Developing Your Potential" report, one of a number of PsyMax Solutions' reports available, will be shared with each participant. This first event of this program was held at the Corporate College East campus in Cleveland on October 20th. To learn more about this program, please contact Ann Hach at 216-987-2962 or e-mail Anne.Hach@tri-c.edu.
PsyMax Solutions exhibited at the Fast-Growing Electronic Recruiting (ER) Expo. PsyMax Solutions exhibited along with their partner HRSmart at the ER Expo Fall 2005 conference, which took place on September 28-20, 2005, in Boston. "The event was a definite success for PsyMax Solutions. I want to thank HRSmart and the Electronic Recruiting Exchange (ERE) for inviting PsyMax Solutions to participate in the conference" says Fred Elabed of PsyMax Solutions. To know more about ERE, visit their website.
About PsyMax Solutions
PsyMax Solutions offers an on-demand and integrated Human Capital website that provides world class assessment, interviewing, development, coaching, career, and 360° reports and programs for employees and managers. The PsyMax Solutions product suite is based on the work of psychologists who have conducted and written reports for over 20,000 managers. Our product suite generates results equal in quality, but at a fraction of the cost.
The PsyMax Solutions product suite is ready for immediate use without time-consuming and expensive consulting and IT set-up costs. In minutes you can create your own customized Human Capital website and use our integrated product suite to align your recruitment and development processes. To learn more about PsyMax Solutions, please visit us on the web at www.psymaxsolutions.com, e-mail us at info@psymaxsolutions.com, or call us at 866.774.2273.
