Imagine how your organization would perform if every position was filled with employees who naturally do the things that make them successful in their respective job? Can you imagine a culture where every employee is highly engaged, motivated to give discretionary effort, and wouldn’t dream of leaving? Under these circumstances you could achieve the same results with fewer people, or measurably better results with the same number of people. That would be amazing. And while it’s unrealistic to achieve such outcomes 100% of the time, you can dramatically improve your odds by paying closer attention to one critical selection factor – job fit.
Job fit is a largely overlooked crucial factor when considering candidates for any open position. It refers to the degree of compatibility between an individual's skills, interests, values, and cognitive and behavioral drives, and the requirements and culture of a particular job or organization. Good job fit is an even stronger driver of retention than compensation*, and reduces voluntary turnover (quits) since individuals are more likely to stay in a job that matches their needs and preferences. Reducing turnover is the simplest and most direct method of saving time and resources spent on recruiting, hiring, and training new employees. This is important for several reasons.
Hiring mistakes directly cost 30%-50% of first year’s salary and indirectly cost much more. With such low unemployment, talent acquisition professionals are desperate to find enough talent to fill open positions, and the pressure is high to compromise rigor and standards to fill openings. While time-to-fill metrics might benefit from this approach, it typically leads to higher turnover within the first 12 months. It’s like trying to fill a bathtub with the drain open, only instead of water going down the drain it’s organizational resources. Generally, across all industries one in three new hires quit within their first 90 days, something called new hire churn. Without costing much more time and effort, focusing on good employee job fit dramatically improves hiring outcomes in the following ways:
When there is a good fit between an individual and their job, they feel satisfied and fulfilled, which leads to higher productivity, motivation, and overall well-being. Good job fit also enables individuals to pursue their passions and work in a field or industry that aligns with their interests and values. This leads to greater fulfillment and purpose in their professional lives. These are key drivers of retention and motivation, particularly with younger generational cohorts.
Individuals with skills and abilities that align with the job requirements tend to naturally perform well and achieve success, leading to career advancement and professional growth. Another key driver of retention and motivation but demonstrated growth opportunities is effective in attracting strong candidates as well.
When employees feel they fit well with their job and organization, it fosters a positive work environment. This can lead to better teamwork, collaboration, and employee engagement. Employees stay in environments that are positive and engaging and jobseekers want to join such organizations. It produces a virtuous cycle.
By adding a five-minute selection assessment, such as The Predictive Index Hire module, we are currently cutting new hire churns rates in half for our clients - simply by focusing more on job fit. Try it for yourself for free.
* Human Capital Institute (HCI) in the article: Job Fit: Igniting Your Employees’ Unique Skills to Get Things Done (Jan. 2020)