Return on Investment
Steve Anderson
ACT Workforce Development
Agenda
• WorkKeys & ROI Outcomes
• WorkKeys Value Data Sources
• WorkKeys Cost Data
• Case Studies
• Questions / Discussion
How do businesses use WorkKeys?
• Recruitment / applicant screening
• Selection
 Pre-employment
 Internal career opportunities
• Incumbent employee training & development
• Training program development / alignment
• Succession planning / Career laddering
WorkKeys ROI Outcomes
WorkKeys can provide measurable financial
outcomes and value-added benefits in the
workplace in the following categories:
• Employment Practices
• Employee Training & Development
• Performance Metrics
ROI Calculation
• The purpose of the ROI calculation is to compare
the costs of an intervention (WorkKeys) with the
value of its results.
• ROI = Value – Costs / Costs x 100 (percentage)
• Value is determined by converting measurable
outcomes into dollars (savings, profit margins, etc.)
• ROI formulas are predicated on specific metrics
that are critical to a business’ success.
ROI Value Data Sources:
Employment Metrics
Hiring / Turnover / Attrition Cycle:
• Recruiting costs
• # of job applicants
• Interviews / hires ratio
• Interview hours
• Processing time
• New employee training costs
• Unemployment costs
ROI Value Data Sources:
Training Metrics
• Number of employees trained
• Completion / success rates
• Training dollars
• Training time
• Time to proficiency
• Performance impacts as a direct
outcome of training
ROI Value Data Sources:
Performance Metrics
• Company-specific production measures
• Product quality / error rates / remakes
• Cost reduction:
- Overtime hours
- Supervisory ratios
- Scrap rates
• Absenteeism, Corrective actions / safety violations
• Increased customer service / reduced complaints
• Sales / Profit margins
ROI Cost Data Resources
• Compensation (recurring): Average wage (include
benefits) for profiling / assessments
• Lost Time (recurring): Average time off the job to
participate in job profiling & testing
• Test Costs (recurring): Test fees, administrative
costs (preparation, proctoring, scoring), facility
costs
• Development Costs (one time): Costs to establish
WorkKeys system in the organization
Case Studies:
The System in Action
Employment ROI Case Studies
• Mid-American Energy:
- Meter Reader turnover reduced* (83%)
- Overall turnover (5 positions) dropped 51%
• Bradner Retirement Village:
- Decreased interviewing time (75%)
- Decreased processing time (55%)
www.workkeys.com/case
Training ROI Case Studies
• Morningstar Farms:
- Training time reduced 50%
- Cost savings of $2500-$3700 per employee
•
Northrop Grumman Ship Systems:
- 28% reduction in turnover (layoff) rates
- Reduced layoffs via cross-training ($2M savings)
www.workkeys.com/case
Performance ROI Case Studies
• Creative Extruded Products:
- Overtime hours reduced (95%)
- Scrap expenditures reduced (21%)
- 50:1 profit / cost ratio
• UP Special Delivery:
- Increased productivity resulted in 20% staff
reduction in data processing department
www.workkeys.com/case
Non-Financial Outcomes
• Employee satisfaction / morale
• Management / supervisory satisfaction
• Increased employee focus on education
• Industry competitiveness
• Job satisfaction
• Skill data (succession planning)
• Employee performance ratings
www.workkeys.com/case
Who Uses WorkKeys?
Questions / Discussion
Contact Information:
Steve Anderson
steve.anderson@act.org
563.391.3742