PeopleKeys Blog

Predictive Hiring Tips for Reducing Employee Turnover

Written by PeopleKeys | Apr 20, 2023 5:43:04 PM

High employee turnover can be a significant drain on a company’s resources, with the cost of replacing an employee potentially reaching up to 33% of their annual salary. Beyond the financial implications, frequent turnover can disrupt team dynamics, impact morale, and waste valuable time. As a manager or supervisor, making informed hiring decisions is crucial to minimizing turnover and fostering a productive, engaged workforce. Predictive hiring, with its data-driven insights, offers a powerful tool for achieving these goals. Here are three effective strategies to reduce employee turnover using predictive hiring:

1. Avoid Rushing the Hiring Process

Why It Matters: Rushing the hiring process can lead to poor decision-making and increased turnover. Settling for a candidate who doesn’t fully meet the job requirements or fit well with the company culture can create more problems than not filling the position at all.

How Predictive Hiring Helps: Focus on finding candidates who not only have the necessary skills but also align with your team’s dynamics and company values. Utilizing predictive hiring tools, such as the PeopleKeys 4D Hiring Report, allows you to objectively assess a candidate’s natural personality traits, strengths, and soft skills. By comparing these attributes with the job role and company culture, you can make more informed hiring decisions. Implementing pre-hire assessments and leveraging occupational benchmarks can streamline this process, ensuring that you select candidates who are likely to thrive in the role and contribute positively to the team.

2. Leverage Referrals for Deeper Insights

Why It Matters: Referrals provide a unique perspective on a candidate’s past performance and behavior. They offer insights that are often not apparent from resumes or interviews alone, helping you gauge whether a candidate’s previous success aligns with your company’s needs.

How Predictive Hiring Helps: When considering candidates, actively seek referrals from previous employers or colleagues. This can provide valuable feedback on the candidate’s work ethic, achievements, and areas for improvement. By integrating this information with predictive hiring data, you can gain a more comprehensive understanding of a candidate’s potential fit for the role. For instance, if a referral highlights a candidate’s strong leadership and teamwork skills, and this is corroborated by predictive assessments, you can be more confident in their ability to perform and adapt within your organization.

3. Assess Emotional Intelligence (EQ)

Why It Matters: Emotional intelligence (EQ) is a crucial factor in workplace success. Employees with high EQ can navigate interpersonal relationships more effectively, contribute to a positive work environment, and manage stress better. Understanding a candidate’s EQ can provide insights into their potential for collaboration and overall impact on the team.

How Predictive Hiring Helps: Emotional intelligence encompasses five key components: self-awareness, self-regulation, motivation, empathy, and social skills. The PeopleKeys 4D assessment helps enhance self-awareness and provides predictive insights into a candidate’s EQ. By assessing these components, you can determine how well a candidate will fit into your team dynamics and handle workplace challenges. For example, a candidate with high empathy and social skills is likely to build strong relationships with colleagues, enhancing teamwork and reducing conflict.

Reducing employee turnover is crucial for maintaining a stable, productive workforce. By integrating predictive hiring strategies into your recruitment process, you can make more informed hiring decisions that align with both the job role and company culture. Tools like the PeopleKeys 4D Hiring Report and emotional intelligence assessments provide valuable insights that help you select candidates who are not only qualified but also a good fit for your team.