Improving the Consistency and Quality of Job Applicant Reference Checking

Company: Financial Services Firm with $37 B market capitalization

Challenge: Hire 1,000 new Financial Advisors that will succeed and stay.

SkillSurvey Application Point: This client uses SkillSurvey to check references at the end of the hiring process, just before the job offer is made; after 2 interviews and a personality profile have been completed.

Summary:
This global financial services firm was looking for a more consistent and reliable approach to reference checking the one thousand new sales representatives they hire every year. Prior to adopting SkillSurvey, this firm had no standard process for reference checking. In many cases, references weren't checked at all. Individual branch managers that did make reference check phone calls would determine what questions to ask and which applicants to reference check. A high risk scenario indeed.

To be successful in these jobs, these sales reps need to have a disciplined work ethic, a high degree of personal and professional integrity, and they need to build relationships easily while handling rejection as part of the job. These attributes are not easily measured in an interview. However, an applicant's professional references, through long-term experience with the applicant, are able to accurately assess their capabilities.

The company uses SkillSurvey towards the end of their hiring process, after the applicant passes an industry-specific "personality profile" test and two rounds of interviews. By applying SkillSurvey consistently, all applicants can be quickly and easily reference checked, and all applicants' references are asked the same questions and the same number of questions, every time. Side-by-side applicant comparisons are now possible.

Despite the fact that there these finalist applicants have been interviewed and tested, SkillSurvey still identifies a significant number of applicants who may not be a fit for the job. In fact, 7% of applicants SkillSurveyd by this company receive Low scores by their references. Another 20% are scored Medium. With industry four-year sales rep retention hovering at about 12%, it is critical that this firm only hire applicants with a high probability of success.

The SkillSurvey ROI% for this company is impressive. They believe that the cost of one bad hire is approximately $200K. By helping this firm avoid bad hires in 7% of the cases where one thousand applicants are just about to receive and job offer, the savings and ROI% are substantial. Identifying another 20% of applicants who may need extra training or support helps the hiring managers more readily prepare and focus on making these new hires successful.

SkillSurvey Results:
7% scored Low -> Don’t hire; at $200K per bad hire, look for more qualified applicants

20% scored Medium -> Use caution if hiring; identify skill gaps and specifically train for success

63% scored High +/- Hire as planned

Tangible Benefits:
A bad hire cost this firm $200K.

$1.4MM saved from these 100 jobs alone..

Annualized savings: $14 Million.

No reference check calls made; managers are more productive