Hiring Cost Savings with Elevated Performance: An Objective Study of Selection
In 2008 the Memorial Hermann Health Care System, which includes 14 hospitals in Houston, Texas had to find ways to reduce both initial hiring costs and the long-term costs of high turnover. We ininitiated a program to improve their selection process.
To evaluate their new program Memorial Hermann we implemented a pilot program evaluating the hiring of 300 employees using the Hartman Value Profile (HVP). This reliable assessment stands alone among assessment systems simply because the HVP is based on a scientific method that is mathematically calculated and objective, and it has been validated many times over. To take the assessment prospects are required to make value judgments by rank ordering two sets of items from “most valuable” to “least valuable.” The resulting report is then based on the individual value judgments made and is amazingly accurate.
Employee performance was determined after 12 months of employment for all hires in the pilot program by using the same rigorous and objective employee evaluation that was already in place for all staff. This allowed the 300 new pilot hires to be compared with existing employees at Memorial Hermann’s. The comparative results were as follows:
The largest increase was in very commendable performers, a highly desirable set of employees, that went from only 9% to 42% in the pilot group, a 33% increase. Even the distinguished performers increased from 2% to 5% in the pilot group
The results substantiated the ability of hiring more suitable employees in a more cost effective manner. Memorial Hermann was also pleased to discover that the HVP system greatly increased the probability of employing a higher percentage of top performers.
BOTTOM LINE: Memorial Hermann determined that once fully employed, the HVP selection system demonstrated an approximately $42 million in annualized savings in a 27,000 employee system.
Here are some additional stories from clients:
“Dear Maggie, It is with sincere appreciation that I write you with an update…. Morale has been fantastic, and there is truly “excitement in the air.” Everyone enthusiastically agreed your last meeting, in which you discussed understanding, working and living with each of the different personality styles, was one of the most beneficial experiences they could have had.
“Everyone has a great deal of praise for you, Maggie, and asked if future meetings were a possibility! We all sincerely thank you for ‘righting our ship’ and setting us on a cohesive and joyful journey together. Dentistry is fun again.” LS, D.M.D. and BB, D.M.D., Tempe, Arizona.
“When Dr. Moore bounced into the room, I didn’t really know what to expect. When she walked out she left behind a group of people very excited and energized about themselves and this company. Maggie has a lot of business savvy and she shared it with us, and taught us who we really are. I have never seen so much good morale around here–nine months later, people are still talking positively about the workshops. I have never felt more clear about the direction our company is going. I recommend her program to ANY company interested in building a good corporate climate. For us, it’s paying off on the bottom line.” — NC, Owner/Operator, SoDak Cattle Company
“Prior to becoming a partner in my own company, I brought Viatech Global into the $8 billion-per-year mega-company I worked for. Employee turnover for benchmarked jobs went from about 80% to 15% in less than a year – half of that reduction can be attributed to their assessments. I won a lot of points by bringing in the Viatech system!” — David Rabb, Co-owner of Leak Detection Technologies, Tuscon, AZ www.LeakDetect.net
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