First, employees with the right skills will perform better for you and the company.
Second, it is important because it’s costly to recruit and hire employees. Financial services firm KeyBank knew it needed a better way to screen and select tellers and call-center employees. The company calculated it cost about $10,000 to select and train an employee, but it was losing 13% of new tellers and call-center employees within the first 90 days. That turnover number dropped to 4% after KeyBank implemented a virtual job tryout candidate assessment screening tool. “We calculated a $1.7 million cost savings in teller turnover in one year, simply by making better hiring decisions, reducing training costs and increasing quality of hires,” said the firm’s human resources director.
Third, it’s important because mismanaging hiring has legal consequences.
Person-job fit refers to identifying the knowledge, skills, abilities (KSAs), and competencies that are central
to performing the job. Then we must match the KSAs to the prospective employee’s knowledge, skills, abilities, and competencies.