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Cash America Posts a 43% Turnover Reduction with PeopleAnswers

Date: Aug 06, 2009
Industry: Financial Services
HR Challenge: Turnover

Cash America anticipates a two-year savings of $1.2 million due to better hiring decisions using the PeopleAnswers solution

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Cash America International, Inc. provides specialty financial services to consumers in the United States, United Kingdom, and Mexico through the brand names of Cash America Pawn, SuperPawn, Cash America Payday Advance, Cashland, Mr. Payroll, and Prenda Fácil, as well as the Internet portals of CashNetUSA.com and QuickQuid.co.uk.

Business Challenge

Cash America offers a diverse list of services such as pawn brokering, cash advances, loans, pre-paid credit cards, tax filing, and Western Union transfers. Every phase of the business calls for managers and customer service representatives to draw on a wide range of job knowledge to fulfill shop duties. With extensive training programs in place to prepare employees for every potential financial transaction, Cash America estimates the hiring and training costs for managers at $10,000 per person, and conservatively $2,500 for customer service representatives. Simply put, the fewer experienced employees that must be replaced, the better.

The PeopleAnswers Solution

PeopleAnswers’ initial task was to analyze employee performance data and compare it to the assessment results of incumbents in the target position. The results of this analysis form the basis of PeopleAnswers’ Performance Profiles™. These job-specific, customized profiles, which are collections of behavioral traits that relate most strongly to high performance on the job, were used as the templates to identify people who were ideal fits for Cash America Customer Service Representatives and Shop Managers.

Results

Turnover rates were calculated for 3,248 Cash America employees hired during the study period. All employees in the study were hired over the same two-year period, and turnover rates of those hired using the PeopleAnswers tool stand in stark contrast to those hired outside of the PeopleAnswers system. Because of PeopleAnswers’ predictive ability to identify better hires, a tremendous savings in hiring costs was demonstrated based on documented turnover trends.

• Shop Managers hired using the PeopleAnswers assessment had an average turnover rate reduction of 42.77% compared to managers hired without the assessment process. This reduction saves 18 out of 100 hires over two years, or $180,000 in replacement costs.

• Customer Service Representatives “Recommended” by the PeopleAnswers assessment averaged a turnover rate reduction of 27.47% over “Not Recommended” hires after the first 3-, 6-, 9-, and 12-month intervals on the job. This reduction saves 417 out of 3,000 hires over two years, or $1,044,000 in replacement costs.

The Bottom Line

Employees working behind the counters of every Cash America serve as the company’s link to consumers. Managers and customer service reps are the conduits for money lending, inventory purchases, and the handling of multiple cash transactions with accuracy and integrity, all of which are activities that drive corporate profitability. PeopleAnswers is a committed partner with Cash America to make employee selection a simple, predictive, and profitable process that will keep Cash America strong in the years to come.

 

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Visit the Cash America Site.