Case Study: National Mobile Phone Retailer

This client is a large authorized retailer of consumer telecommunications services, with nearly 200 locations within the United States. They have been broadly recognized for their exceptional quality and commitment to customer satisfaction. They strive to be true partners to their clients, leveraging innovative technology and expert services to deliver superior communication solutions that exceed client expectations.

To remain competitive, the client needed to improve prediction of two key performance metrics for their Retail Sales Associates (RSAs) during the hiring process: Profit Per Hour, and Tenure.

The client implemented HR Avatar’s sales-focused personality assessment for all RSA applicants. The traits measured by this assessment include:

• Adaptability: Thrives under changing work conditions
• Competitive Spirit: Desires to win and outperform peers
• Drive: Hardworking and overcomes obstacles
• Empathy and Emotional Self-Control: Understands others’ needs and points of view
• Integrity: Trusting, believes the best about others & does the right thing
• Sales Mindset: Enthusiasm for new customers and opportunities
• Teamwork: Energized by working with others and is an energizer

After more than 12 months of data were collected, HR Avatar conducted a study to match assessment scores with each RSA employee’s performance metrics. The goals of the study were:

1. Confirm the assessments reliably predict these metrics.
2. Further optimize the assessments to increase their predictive ability for this client.

The specific performance metrics were defined as follows:

1. Profit Per Hour: Gross profit generated per hour during months 3 and 4 of each employee’s tenure.
2. Tenure: Whether new hires achieve 300+ days of tenure.

High Scorers with HR Avatar Assessments produced higher profit per hour.

• High scorers on the Integrity scale demonstrated up to 28% more profit per hour.
• High scorers on the Competitive Spirit scale were 33% more likely to achieve 300 days tenure.

Integrity vs Profit Per Hour (Months 3 & 4)

Our study revealed that Retail Sales Associates (RSAs) who scored high or medium on Integrity demonstrated up to 28% more Profit Per Hour in months 3 and 4 compared to those with low scores. This underscores the importance of Integrity in driving sales performance over time.

Competitive Spirit vs 300-Day Tenure

RSAs with high scores in Competitive Spirit had a 33% higher 300-day retention rate than those with low scores. This finding highlights the role of a competitive nature in employee retention.

Results Part 2 - Optimizing the Assessment

Using the data collected during the study period, HR Avatar was able to formulate revised predictors for both performance and tenure. Based on the analysis, the revised predictors will result in 46% higher profit per hour and more than 100% higher retention for higher scorers compared to low scorers.

Optimizing Prediction of Profit Per Hour

Through linear regression analysis, controlling for initial training and performance (Month 1 Profit Per Hour), we identified key traits that predict higher profit in months 3 and 4. These traits primarily cluster around the theme of Trust. The most predictive items referenced trust in people and organizations, not seeing people as problems, and maintaining integrity. Other important themes, in order of priority, include:

• Adaptability and Embracing New Opportunities
• Competitiveness
• Positive-Oriented Assertiveness
• Trust/Integrity

These themes collectively form the typical profile of an RSA who generates higher Profit Per Hour.

The optimized predictor is projected to average 46% more Profit Per Hour for high scorers compared to low scorers, highlighting the effectiveness of a sales-driven mindset in achieving superior financial results.

Optimizing Prediction of 300-Day Tenure

For predicting whether RSAs would reach or exceed 300 days of tenure, the most significant themes were:

• Adaptability
• Competitiveness
• Emotional Intelligence
• Persuasiveness/Sales Mindset
• Trust/Integrity

The optimized scale for 300-day retention is projected to be more than double that of low scorers, emphasizing the impact of these traits on long-term employee retention.