Performance Based Hiring System

How To Reduce Employee Turnover

Every business has to deal with the potential of excessive employee turnover.  If management does a poor job of recruiting and hiring employees that become productive and satisfied, they tend to look for greener pastures.  Many businesses have standardized the expected turnover rates for their industry and accepted it as a cost of doing business in that industry.  The process of recruiting and hiring is left to each individual manager to create and execute as they see fit, without quantifying individual management recruiting and hiring performance.  As a result, only 60% of hiring decisions result in employees that stay over a year.

Saved company over $300k annually through the implementation of a performance based recruiting and hiring system that attracted candidates to the company vision

Researching the process of recruiting and hiring resulted in the discovery of a number of systems used by various Human Resource Consulting firms that measured recruiting and hiring performance.  Through the application of those systems to our own recruiting and hiring process and measuring results, we decided to put together a system of our own using the best of what we found.  We documented and standardized the recruiting and hiring process.  First, the hiring system would attract candidates based on the vision and mission of the company.  The company’s purpose had a passionate story behind it.  We would tell that story to potential candidates and have them complete a standardized three question written interview and personality test.  We asked them if they found themselves drawn to our vision and why.  Based on their answers they would be asked for a second interview.  They also were asked if they connected passionately to our vision.  If they weren’t, they were eliminated. Then we had a standardized list of questions in the first interview and a form for quantifying the answer to their questions.  Depending on the position there were 2 or 3 interviews.  The questions asked were performance-based questions that would have them demonstrate the skills necessary to do the job.  They wouldn’t just answer questions they would perform the tasks.  As a result, those who were hired were in alignment with the company’s values and vision, and needed little training to do the job they were hired for.  They were easier to manage and had a high level of job satisfaction.


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2013 Jim Anderson

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