How Behaviour Assessments Can Improve Employee Performance and Retention
Introduction Every employer wants to hire top performers, but once they're on board, the focus shifts to retaining them. Employee turnover in India reached as high as 21% in 2021, highlighting a key concern for many companies due to the high expenses and time it takes to hire replacements. Losing a new hire not only costs money but can stall business operations. Traditional hiring methods, like interviews, may not accurately predict how long an employee will stay. This is where behaviour assessments come in—offering a science-based way to gauge how well a candidate fits the role and company, ultimately leading to improved employee retention and performance.
How Behaviour Assessments Can Boost Employee Performance Behaviour assessments are crucial for companies aiming to enhance employee performance and foster a strong team culture. These assessments can: Identify Potential Conflicts: Spot issues among employees or teams before they escalate. Determine Training Needs: Highlight areas where employees may require additional support to reach their full potential. Enhance Workplace Culture: Provide insights into individual characters and actions, contributing to a more productive and satisfying work environment.
Understanding Employee Retention and Turnover Challenges Employee retention refers to the number of employees exiting an organization over a specific time, whether voluntarily or involuntarily. High turnover rates pose challenges, as finding and training new employees can be costly and time-consuming. This can hinder long-term business operations and impact productivity and morale. Companies are increasingly looking to hire individuals who not only possess the required skills but also fit well with the company culture. Example: A SaaS company with 40,000 employees that lost 500 in a fiscal year would calculate its employee retention rate as follows: Retention Rate=(40,000−50040,000)×100=98.75%\text{Retention Rate} = \left(\frac{40,000 - 500} {40,000}\right) \times 100 = 98.75\%Retention Rate=(40,00040,000−500)×100=98.75%
Benefits of Employee Retention 1. 2. 3. 4.
Increased Efficiency: Long-term employees are familiar with processes and can boost productivity. Improved Productivity: New hires require time to adjust, which can slow overall output. Enhanced Team Spirit: Employees who feel they belong are more committed and motivated. Cost Reduction: Retaining talent avoids the expenses associated with recruiting and training new employees.
Why Interviews Are Insufficient for Predicting Retention Candidates typically express a desire to stay long-term during interviews, but this doesn't guarantee their commitment. Performance in interviews doesn’t reflect long-term job satisfaction or fit. Various factors influence retention, making it challenging to gauge during a standard interview process.
The Impact of Behavioural Assessments Every role has an ideal personality type. For instance, successful salespeople often possess traits like extroversion and persistence. When employees don't fit the company culture, they may feel disengaged and seek other opportunities. Behavioural assessments can: Identify Key Traits: Offer psychological insights into candidates' behaviours. Assess Cultural Fit: Ensure alignment with company values through validation research. Predict Retention: Maintain clear communication throughout the hiring process.
How Behavioural Assessments Go Beyond Interviews Behavioural assessments can clarify the essential traits needed for specific roles, focusing on: Resilience: Candidate's ability to handle pressure. Dedication: Drive to perform under challenging conditions. Cultural Alignment: Fit with the company's core values. Objectivity: Provide unbiased evaluations compared to traditional interviews.
Case Study: A Financial Firm Enhancing Retention with Insights A mid-sized financial services firm struggled with high turnover despite competitive benefits. By integrating behavioural assessments into their hiring and development processes, they matched candidates to roles that suited their personalities, improved team dynamics, and created tailored training programs. For instance, after using behavioural assessments to hire for customer-facing roles, retention improved by 2x within six months, leading to a 3x reduction in turnover and increased productivity across teams.
Conclusion Implementing behavioural assessments as part of your employee retention strategy is a proactive investment. These assessments allow for better profiling of job demands, advising managers on team performance, and predicting potential conflicts. For high-quality behavioural assessments and proctoring solutions, MeritTrac is here to help. Contact us today for a free demo and discover an effective talent development process.
FAQs 1. How do behavioural assessments help teams? Managers can enhance team productivity by understanding individual behavioural traits, leading to better role assignments and improved teamwork. 2. Can leadership development benefit from these assessments? Yes, behavioural tests can customize leadership programs to harness individual strengths and weaknesses. 3.Which sectors benefit from behavioural assessments? They are effective across all sectors that prioritize employee performance, including
healthcare, banking, IT, manufacturing, and education. 4.How often should businesses use these assessments? Assessments can be employed at various stages, including hiring, performance evaluations, and leadership development. 5.What is the cost of implementing behavioural assessments? Behavioural assessments for employee performance and retention come in different packages based on the service needed. But in many cases, the long-term advantages —such as better performance, increased retention rates, and lower hiring expenses —soon outweigh the initial investment. Features such as online proctoring solutions make these tests a more viable, trustworthy, and budget-friendly solution for companies. Source:https://www.merittrac.com/blog/how-behaviour-assessments-canimprove-employee-performance-and-retention
