The PEP can dramatically reduce your turnover, saving the organization significant time and money.
CASE STUDY: A 500+ unit, national specialty retailer began using the PEP program when turnover was over 90%. One year later, turnover had dropped to just over 50%. Figuring $1000 cost/hire, this reduction equaled a savings of $1,600,000 in turnover costs. After 4 years of use, turnover had dropped below 30%. Company shrinkage had also dropped from nearly 2% to only 1.4%.
CASE STUDY: A chain of 120 convenience stores in the Midwest began using the PEP. Prior to that, they had been relying on a “background check” database service for advanced applicant screening. After using the PEP program for one year, they dropped their turnover from 276% to 180%. By the end of 2 years, their turnover had been reduced to 119% – below industry average. This company estimated $1000 per person for hiring costs. In turn, this 35% improvement in turnover generated a savings of over $1,021,000 to the bottom line operating budget in the first year alone.
CASE STUDY: A study conducted by a major grocery wholesale company in the Midwest found that turnover in new hires dropped significantly after implementing the PEP testing procedure. In fact, this reduction came at a time when management felt turnover would have increased due to heightened productivity demands. Prior to the PEP, no written testing had been used. Turnover on new hires was running nearly 50%. During the first six months of testing, turnover was reduced to 34%. The following year saw repeated improvement – turnover dropped to 25% in new hires. Net effect? A 50% improvement in turnover within 18 months.