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.
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 companyâ€™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.