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Client Company:
Regional division of a global supermarket chain with more than 4000 stores in more than 40 countries.
Challenge:
Reduce high employee turnover rates (63%) in grocery clerk positions. Reduce excessive turnover costs. Identify competencies that predict long tenure
in these positions.
Procedure:
Data collected from the organization's existing workforce were used to create the customized turnover reduction benchmarks. Employees in the positions
under study were asked to complete a brief 10 minute survey that measures a range of important competencies. Once collected, the employee competency
data were evaluated along with actual tenure indicators and company performance requirements and customized performane benchmarks were then established.
A double-blind, controlled research design was employed to gauge the effectiveness of the turnover reduction benchmarks. Two control and two
experimental groups were formed, separately, each of which was divided into long-term and short-term subgroups based on tenure in the position.
Following data collection, a benchmark was created on each control group and applied blind to its corresponding experimental group to predict each
employee's mathematical probability of being a long-term employee.
Results:
Use of PHD's benchmarking tools required no dramatic change to the existing hiring procedures. This client company has simply incorporated the 10 minute
competency survey as an additional, required step in the hiring process.
Over the course of the evaluation period, PHD turnover reduction benchmarks achieved the following:
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