Have you ever wondered, “What is the value of employment testing?” For this community bank, the answer to that question is both surprising and compelling. After implementing a new skills-based hiring and development solution, the bank saw an immediate drop in teller turnover and experienced a direct cost savings of $430,000 in the first year.
Facing a turnover rate of 47% among its tellers, the bank’s leadership team knew it had to do something different, but what? They already had an established selection process that included two numerical tests and required tellers to have previous customer service and cash handling experience. Despite this process, many of its tellers quit or were terminated in the first three to six months.
The bank’s Staffing and Recruiting Specialist attributes much of this early turnover to two key factors: job dissatisfaction and performance issues. Job dissatisfaction was the result of unrealistic expectations about the work, and common performance issues included cash handling errors and failures to follow bank procedures.
In response to these retention and performance concerns, an area bank recommended Employment Technologies’ EASy Simulation for Tellers. The team was immediately impressed. Unlike traditional employment tests, Employment Technologies’ skills-based simulation immerses applicants in the teller role, giving them the opportunity to experience the job first-hand. This realistic assessment accurately measures key job skills while giving applicants a realistic preview of the teller job.
To create a seamless selection and development system, the team implemented Employment Technologies’ fully-integrated Hire Confidence® Solution, including the Teller simulation and Structured Employment Interview® (SEI). At the same time, the bank launched an innovative mentoring and career-pathing strategy that integrates with and maximizes the results of the new hiring solution.
The teller job is much more difficult than people think. According to the bank’s Staffing and Recruiting Specialist, “The teller position is the hardest entry-level position for which I’ve recruited because there is a vast difference between the applicant’s perception of the teller job and the realities of the teller job.”
In reality, the teller position is a multi-faceted job that requires superior customer service and adherence to strict quality and accuracy standards. Some tellers are uncomfortable handling aspects of the job that they hadn’t anticipated, such as dealing with angry customers and making sales referrals. Consequently, these tellers often become frustrated and quit because they realize the job is not right for them.
With Employment Technologies’ Teller simulation, applicants have the opportunity to “test drive” the job before they’re hired and experience the unique challenges tellers face on a daily basis. This realistic preview has made a dramatic impact in reducing turnover. Now applicants can self-select out of the hiring process if they feel that the job is not right for them. In addition, new tellers now know what to expect and are better prepared to meet the demands of the job.
Along with creating realistic expectations, the Teller simulation has enabled the bank to improve the bottom line by hiring more capable, better qualified tellers. As part of the simulation, applicants perform key job tasks, providing a highly accurate prediction of applicants’ future job performance.
Moreover, the simulation gives a comprehensive evaluation of applicants’ skill strengths and development needs. According to their Recruiting Specialist, “By pinpointing applicants’ strengths and weaknesses, the simulation enables us to easily make more accurate hiring decisions.” These detailed results have also become a valuable component of their training process, serving as a guide for trainers and mentors in developing new tellers.
As a result of the new Hire Confidence® process, the bank is hiring more capable tellers. Branch managers have noticed an increase in the quality of new hires, with the new tellers making fewer and less costly errors. In addition, sales have increased because new tellers are more comfortable making referrals. These cost savings and performance gains have improved the bank’s overall profitability.
After implementing the new selection and development process, the bank experienced a significant reduction in turnover. Turnover among new tellers dropped by 43% (from 23% to 13%) and overall teller turnover dropped by 38% (from 47% to 29%).
An unexpected benefit has been a reduction in teller training time, dropping from three weeks to two.
For an untraditional solution to common HR challenges, click here to learn more about Employment Technologies’ Hire Confidence Solutions for Banks and Financial Centers.