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What do you mean by maximizing employee ROI? Quantitative or qualitative? Key metrics? ROI individually, team and/or company?

Quantitive -

Employees are expensive. For most companies, it is the largest expense in the business. We are solely focused on helping to maximize the return on those investments.

Here are a few examples of key employee ROI metrics:

1. Reduction in Turnover = Reducing/Eliminating bad hires – Conservatively, the cost of a bad hire is 30% of the employee’s annual earnings. That calculation focuses more on lost recruiting, onboarding and training costs. It does not calculate lost productivity of other members of the team, management and potentially huge customer/client issues. Using our assessments as part of the hiring process costs less than 1% of base compensation and our clients attribute reduction of turnover to a minimum of 10% to over 70%.

In addition, the assessment data can be used to accelerate the onboarding process and improve management effectiveness. Harder to quantify but valuable.

2. Sales Growth as a result of hiring a Sales Team that can effectively sell to your customers/clients.

Salespeople are notoriously hard to hire. Their gift is their ability to “sell” you. Our tools allow you to measure the true hunger (hunter vs. farmer), technical competence, and ability to engage effectively with the customer/client base. DISC measures an individual fit to the role. 85% of top salespeople globally have a similar pattern. Driving Forces measures 4 critical areas for top sales performance.

  • Since incorporating our assessment tools into their hiring process our client (industrial manufacturing) has seen a Sales growth of $8 million to $200 million over 10 years.
  • Since incorporating our assessment tools our client (industrial manufacturing) has provided investors 11x return.

Each of these organizations are growth companies. Our solutions become an integral part of the hiring process and our client retainment is 100%. All of our assessments are numerically driven which allows us to measure averages as well as extreme high or low scores.

3. Increased Employee Productivity through better engagement using EQ.

This one is both Qualitative and Quantitative. Employees who are a great fit for their job, the culture of the organization and their manager are more productive and engaged in their work. I don’t have a specific metric to back that up but I do see our clients having successful and profitable growth and exits. As an addendum to the client retainment statistic, we lose clients when they are sold to a strategic. Great for the client, not always great for us.

We have all worked in a job, for a company or for a manager that did not inspire, appreciate or motivate us. In those cases, we probably did not give 100% let alone 110%. We spent a lot of time looking for a new job.

The ROI of engaged employees can be measured in increased productivity. The ROI of retaining good employees can be measured in reduced turnover and increased productivity. The secret to achieving this ROI lies in a strong effective leadership team and culture. It is pretty inexpensive to evaluate, develop and leverage.