When you reduce false starts, you elevate the bottom line.
New hires that terminate prior to achieving minimum performance standards are called false starts. Typically, these are people who separate from your organization for one reason or another within 90 to 120 days. And if you’re anything like 78% of HR departments that participated in our Turnover Misnomer Survey, your common practice is to report turnover as a percentage.
A significant problem with reporting turnover as a percentage is that it obscures the financial implications. For example, say last year your organization experienced 9% turnover—doesn’t sound that bad, right? But if you take a closer look, perhaps you would discover that of the 9% company-wide turnover, 70% came from one department in the form of false starts that were separated in less than 60 days on the job. Each individual false start will mostly likely require a replacement. Plus, the loss in productivity, team and hiring manager frustration, and investment in recruiting and training for each replacement will cost the company thousands of dollars. Every false start in effect doubles your cost-per-hire and doubles your time-to-proficiency and on-boarding investment for that head count. Now that paints a very different picture than “9% turnover.” To see an example of what false starts are costing your organization, check out our False Start Waste and Rework ROI Calculator.
Virtual Job Tryout® delivers more qualified candidates and fewer false starts.
By increasing the predictability of hiring more top performers and fewer bottom performers, Virtual Job Tryout can help your organization reduce false starts, and thus, the hard costs associated with on-boarding and retraining replacement hires. First, this innovative pre-employment test gives candidates an interactive preview of the job, its performance expectations and the company’s environment, allowing applicants to decide for themselves if they are well-suited for the position. In addition, Virtual Job Tryout provides recruiters with objective data which evaluates a candidate’s job-relevant competencies. Better candidate data improves the quality of the hiring decision and reduces the potential for a false start.