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BENCHMARKING PROCESS DESCRIBED
Many
corporations are discovering Axiometric Benchmarking and are
realizing huge savings in employee turnover and training costs.
The process is used to hire for positions that have
approximately100 people doing the same job, and also for
targeting training and coaching of those already in place.
How does it work?
The system uses a simple non-self-report method to track the
traits of both top performers and marginal employees.
Mathematical algorithms are then used to analyze first, the most
predominant strengths in the high performance group that do not
occur in the marginal group, and then the most predominant
problem areas in the marginal group which do not occur in the
top group.
The result is a scientifically derived
benchmark for success in the job.
What is the process?
There is a two-step process. First, a statistically valid sample of current
employees take a simple, online assessment taking 10-15 minutes.
These employees are identified to the researcher as high and
marginal performers. Through the process described above, the
data is analyzed to see if there are significant differences
between the two groups of performers. If no difference is
detected, then the benchmarking process is discontinued.
If the process described above does find a
significant difference between the two groups of performers,
then Step Two commences with the development of the assessment
criteria. A
proprietary report is developed for that company utilizing the
competencies that differentiate between high and marginal
performers. Potential new hires take the simple online
assessment so that their scores can be compared with the success
benchmark.
For the first year that the company uses the
Benchmarking Report in hiring, the development company will
collect data every quarter to use in refining the assessment
criteria.
What is the outcome?
One national healthcare
management firm began using the process to hire professional
personnel for locations around the country.
The
company saved over $2.5 million in recruitment and relocation
costs during the first year.
Additional Case
Summaries
A national
restaurant chain used the system to better predict who will be
successful in moving from assistant manager to manager. They cut
their failure rate by 30 percent and increased job satisfaction.
They will be using Axiometric Benchmarking for other "front of
the house" and "back of the house" positions nationwide.
An international resort
brand applied the process to find salespeople who will thrive in
their unique call center environment. Their employee turnover
rate was cut from 400 per year per site to 50, saving extensive
recruitment and training costs. The company plans to use
Axiometric Benchmarking for eight other positions.
A national food company that uses direct
delivery was experiencing a route driver turnover rate of 25% to
30% each year. In the first six months that the process was in
place, the company made 400 new hires using the process and only
nine of those drivers have left (a rate of just over 2%).
A major international hotel chain had a very
high turnover in a job category. Using the customized hiring
tool created from the benchmarking study, the Hotel improved
their hiring process. After three months of using the new
customized hiring tool, their hiring process went from hiring
and training 15 new people every two weeks (~90 people every
three months) to hiring and training 8 people every three
months. This was a 90% reduction in the number of new hires
required for their business. The Hotel reduced the costs for
recruiting, selecting and training while improving ongoing
performance.
Overall Effect:
Benchmarking will correctly identify eight
out of 10 who will fail at a job and seven out of 10 who will
succeed. This delivers more than 75% overall accuracy (15 out of
20 are correctly identified). Data on actual results have been
reviewed every quarter for one year and the benchmarking process
is refined based on any turnover that has taken place. The
accuracy thus increases, up to 90%, as job benchmarks are
adjusted over time.
The extraordinary success of this specialized
predictive science for hiring and developing talent is not
limited to large companies. Whereas these examples are real
results from companies with employee pools large enough to use
empirical statistical benchmarking, a non-empirical process has
also been developed based on the empirical model. We are calling
this non-empirical model Success Factors. While
the Success Factors process is not as rigorous as the
Benchmarking Process because it is not as scientific, the
Success Factors Process has nonetheless yielded 65-80%
accuracy or more . The Success
Factors process is more suited for companies with less than 100
employees in a job position. See the description of the
Success Factors Process on this site.
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