On TV and in newspapers, many commentators are claiming that the United States is in recession or heading into recession. We won’t debate that point here. However, we find that talk about recession does cause many organizations to start rethinking potential investments. It makes us wonder if a recession proof investment exists.
Our answer is yes. One recession proof investment is an investment in pre-hire assessment tools. Even during recessions, contact center firms are still hiring new employees. They are still struggling with retaining those new hires. And, they are still struggling to identify candidates who will perform (CSAT, AHT, Sales Ratio, Promises Kept, etc.) on the job. In fact, recession offers an opportunity to potentially hire job candidates who wouldn’t normally be on the job market if their current employer engages in layoffs due to changing financial conditions.
An investment in pre-hire testing tools is recession proof because of the signficant return on investment that can be created by just a small performance improvement. A reduction in turnover by 5% can yield more than a 200% return on the investment in assessment tools. Performance increases can be even larger. As an example, one case study we have shows that new hires with high test scores had 30% lower AHT than new hires with lower test scores. While AHT is not the most critical metric, the financial impact to this organization is significant.