The U.S. Department of Labor estimates the average cost to replace an employee at nearly $14,000 (lost productivity, advertising, management time, learning curve). Others have higher estimates of from 29 percent of yearly salary to several times annual pay.  As a result, many companies in their efforts to retain top talent have added extra perks and bonuses, or instituted more work flexibility and added benefits.

While these measures have helped, companies are now considering how to improve the hiring process to identify candidates who are both qualified and are more likely to stay for the long term.

According to researchers Mei-Chuan Kung and Matthew O'Connell of the Institute for Corporate Productivity, "Certain applicants have a higher propensity for turnover, and these characteristics can often be identified prior to hire."

The researchers cited a study done by Development Dimensions International (DDI) identifying traits predictive of future loyalty and retention.  Specifically they are:

1. adaptability
2. passion for work
3. emotional maturity
4. positive disposition
5. self-efficacy
6. achievement orientation

Obviously DDI and others can offer you online or paper "tests" to measure these traits.  You can also dramatically improve your chances to hire for the long term by defining your company culture and job specific success factors up front, and then matching those results with a behaviorally based interview process.  An additional step some take is to have the best candidates observe the work being done in the organization, thus allowing each applicant the opportunity to assess if their own work style fit with that of the company's.

Employee turnover, especially of top performers, can be reduced substantially by hiring the right person in the first place.  It's not an easy or quick process but the results pay for themselves.