Increased Retention Rate of Restaurant Company from 55% to 72% Results in Savings of $15 Million in 2 Years

The company was experiencing a high rate of turnover in the Unit Manager position. Retention was at 55%. In addition to improving retention, the company wanted to maximize performance of its Unit Managers and enhance the consistency and objectivity of its selection system.

(PRWEB) October 19, 2006 -- How do you reduce a turnover rate? Management Psychology Group was presented with the issue of reducing a high employee turnover rate for a Unit Manager position. The results were outstanding and saved the client $15 million. Read the case study below to find out how.

The Client
A privately-owned restaurant company, with more than 1,300 units in operation across the U.S.

Presenting Issue/Business Need
The company was experiencing a high rate of turnover in the Unit Manager position. Retention was at 55%. In addition to improving retention, the company wanted to maximize performance of its Unit Managers and enhance the consistency and objectivity of its selection system.

Solution
Management Psychology Group collaborated with the VP of HR to analyze the Unit Manager job, determine the characteristics of top performers, recommend/develop appropriate selection instruments, and validate the selection system. A personality and problem solving assessment was put into place that predicted effective job performance and had minimal adverse impact against protected employee groups. The customized assessment is administered to candidates online, with assessment results sent to the company's HR department immediately after the candidate finishes the test. Retention of Unit Managers improved to 67% within a year after the selection system was implemented, then increased to 72% the following year.

Based on the average salary of $42,000 and the average cost of recruitment and training, the implementation of the system saved the client over $15 million at the end of the first two years.

About Management Psychology Group
People are at the heart and soul of every successful business. Management Psychology Group's professional licensed psychologists offer years of expertise and counsel to clients both large and small. Feel free to contact us at Management Psychology Group

About eTest
eTest.net is an online testing company specializing in pre-employment testing and assessment. Our mission is to provide cost-effective screening tools to help our Clients make informed, efficient, and affordable hiring decisions.

Incorporated in 1997, eTest was originally conceived of as an online testing service for its founding company, Management Psychology Group, a professional industrial-organizational psychology firm in Atlanta, GA. Since that time, we have grown to service an international community of companies, all with the goal of improving and refining their hiring and retention practices.

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