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Industry Research : DeGarmo Group Saves National Retailer Money from Call Center Turnover Reduction
DeGarmo Group, announced the results of an analysis on how pre-employment assessments reduced employee turnover for a national department store retailer.
The study, which took place over a 12-month period, examined the effectiveness of the Fit Index and Fit Interview systems for improving retention rates in multiple customer service and collections call centers for the retailer. The Fit Index and Fit Interview systems are pre-employment assessments designed to measure an applicant’s alignment or "fit" with job demands as opposed to traditional job skills.
According to Anthony Adorno, Chief Operating Officer for DeGarmo Group "Most people in front-line, entry-level roles like customer service, retail sales, and collections don’t quit because they can’t perform the work. Rather, they quit because they don’t like the demands of their job, or the environment in which it takes place."
The retailer, which has over 1,000 locations nationwide, previously reported turnover rates around 50% annually, with an average cost conservatively estimated at about $4,500 per person. Additionally, the organization reported losing more than 20% of its workforce within the first 90 days of hire.
The retailer worked with DeGarmo Group to implement the assessment tools and ensure its staff was properly trained on the administration of the new employment interview platform.
"The results were clear. Use of Fit Index and Fit Interview systems made a significant impact on retention rates" said Adorno. According to the case study, voluntary turnover dropped by 49% within 12 months, and turnover within the first 90 days was reduced by 25%. In addition to higher retention rates, the organization also realized net savings of more than $500,000.
Posted by Veronica Silva Cusi, news correspondent
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Published: Monday, May 23, 2011