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Using Employee Assessments to Increase Retention

Increasing employee retention. Many managers ask "What does an employee assessment show an employer?" or "How can I use the information in an employee assessment to make critical business decisions that will increase productivity and profitability?"

Think about the difference in an employee's life, if he or she worked in a job that utilized his or her talents to the fullest capacity. Now, picture your company as the one that employs these workers—people who are interested, engaged, and developing new talents for long-term potential. How much more successful would your company be?

Employee development is not just the responsibility of the employee. In today's diverse workforce, business practices have evolved to reflect the economic advantage in developing and retaining talented employees. Organizations are continually seeking new solutions to assess, understand and strategize employee development.

Managers use employee assessments and surveys to allow them to scope job requirements, evaluate how potential employees fit jobs, and identify changes that will keep employees engaged. By better understanding the people they employ, companies can solve many of their most critical and expensive problems. With reliable information to make human resource decisions, employers can successfully fit people to jobs in which they will excel, become better managers, improve service, build more effective teams and ultimately, retain their best employees.

One of the greatest challenges faced by managers is the strategic personal development of their employees in order to ensure effective use of their talent. To properly manage this important resource, they must identify their challenges and implement employee development and training. Employee development will help managers effectively manage, motivate and empower employees resulting in higher rates of employee retention. By using employee assessments, managers are better able to take stock of an employee's interests and aptitudes and help them apply these talents where most appropriate.

In an article in the Harvard Business Review (1999), "Job Sculpting: The Art of Retaining Your Best People", career experts Timothy Butler and James Waldroop found that by using the technique of matching people to jobs that resonate with the activities that make them truly happy, employee turnover decreased dramatically and productivity increased exponentially. By identifying the characteristics that match people with the work they do, you can effectively identify the key components that will motivate individual employees.

Human resource solutions can provide invaluable tools for increasing consistency in managing employees. Good management is all about understanding fit—how employees fit in with their job, their manager, their team and the organization. Managers need to understand 'fit' in order to effectively interact with and coach the individual employees they manage. This information is available and simply waiting to be reviewed in an employee assessment.

How can you find ways to motivate your workforce through each individual employee? The answer is simple: assessments. Employee assessments will provide you with insight that could lead to higher productivity and job satisfaction throughout your organization. The information collected from assessments provides company leaders with perspective on the current reality in their organizations workplace and highlights areas of concern affecting the total workplace experience.

Many companies use these employee assessments to help them find ways to motivate their employees to live up to their full potential. This provides better results as each employees reason for working is unique. Addressing each individuals needs in the organization will create a highly motivated workforce that strives for the best as a whole.

Keeping employees engaged and motivated is the key to a successful, highly-productive workforce. While some employees are able produce at the highest level regardless of the incentive, others need encouragement. When handled effectively, the result can be greater productivity and increased employee morale. Fortunately, employee retention increases can be achieved by having employees that don't feel the need to leave in order to find opportunities for fulfillment elsewhere. Managers must find ways to understand what drives each individual employee within the context of his or her role in the company. Every employee has a different reason for working. Some employees may be motivated by things like performance-based bonuses, a promotion, flexible working conditions or additional paid time off. Whatever the reason, employees must find some satisfaction in their work or they may become unhappy and unproductive.

So, how can you improve retention in your organization? By measuring the essential factors that mark the difference between success and failure in specific jobs, your organization will be able to put the right person into every position, allowing them to utilize their talents without limitations. This leads to greater job satisfaction, improved morale and employee retention because your organization is staffed with a workforce of people who are highly productive, skilled and committed to doing their very best.

About SAP SuccessFactors HCM

With SAP SuccessFactors solutions, we believe that purpose drives people and people drive business performance. To meet business goals today and be ready to digitally transform for the future, your organization must be able to attract, develop, and retain the best people — tapping into their full potential. We innovate every day to help connect your people to your purpose and transform your workforce experience, to inspire people to perform at their best, and develop the workforce needed for the future. With a leading cloud-based HCM suite, SAP SuccessFactors solutions help more than 6,400+ customers and over 100 million people, across more than 60 industries in over 200 countries and territories, turn purpose into performance. The SAP SuccessFactors brand is part of SAP, the market leader in enterprise application software. SAP helps companies run better, with applications and services that enable our customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit or