Wrong allocations can be avoided!
Results for German and Austrian companies show that the costs of a wrong allocation make up between 50% and 75% of an employee?s annual salary and between 75% and 100% of the annual salary of managers.
Further research attests the better validity of an assessment centre compared to the usual unstructured interviews.
An example:
You receive 100 applications, 30 of the applicants are suitable for the job. You want to hire 10 new employees. From the statistical point of view?
- You will make:
- Seven wrong decisions in a random selection process
- Six wrong decisions if you conduct job interviews
- And only three wrong decisions if you employ a well constructed assessment centre.
If the yearly cost of a manger?s position in your company is 100.000 Euros, this means avoiding a loss of 400.000 Euros with the simple decision of .implementing an assessment centre instead of a job interview.
To this calculation of your savings you may also add:
- Costs caused by less motivated employees and higher fluctuation
- Costs caused by the ongoing search for a new manager
- Less productivity (followed by higher costs)
- And your time and energy
Compared to this the costs of a highly effective assessment centre are minuscule.
We are happy to assist you in creating the best suitable assessment centre
* For scientifical literature see Hossiep and Schuler.