Post on 21-May-2015
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Investing For Growth
Sydney Hunsdale, ConsultantFormer Global COO Razorfish and CFO Vivaki, EMEA
Bottom line improvement
Reduces employee turnover
Increases performance
and productivity
More competitive
Operate more efficiently
Achieve greater growth
Deliver more profit
ROI can range anywhere from 20 to 7000 %
Greatest
Potential
Asset
Greatest
Potential
Liability
Largest single financial drain
Cost of Turnover
£4 billion annually
£184M in Media & Advertising
£1.9 billion in IT and Tech
20 weeks to 7 months to reach peak productivity
RecruitingInterviewing
AdministrationTraining costsLeaving costs
Lost productivityTemporary coverage
Higher comp package Overworked remaining staff
Lost knowledge Strained client relationships
TURNOVER
Realisation that your asset has become an asset of your competitor
True Cost Impact
Entry level – 30-50%
Mid-level – 150%
Exec & specialty 200-400%
Example:
Average cost of turnover at 100%
Average salary of £40,000
1000 employees; 20% turnover
£8 million annually
Costs are largely hidden
Doesn’t hit profit and loss statements
Not in the budget
Not accounted for on a line in the p and l
If that were true, management would certainly take more notice
While many leading companies place more effort on employee
retention, many remain clueless. They accept employee turnover as a
normal part of doing business. I believe our industry is guilty of this.
16
RECRUITMENT REALITY
1,400
Acquisitions/Other +67 Leavers (36%)
1,200 443
328 Dec 11 Headcount: 1,084
1,000 Net 2011 Hires 175Dec 10 Headcount: 909 Recruits +49% (Net 2011 Hires excl Acquisitions: 108)
800
2011 Headcount Flow
HE
AD
CO
UN
T
To achieve an 11% net headcount growth, it required hiring 49% new staff
Tech TalentHigher turnover
Demand far exceeds supply
Cost and competition rising
High vacancy rates
Higher cost per hire
Contributes to higher cost of turnover
…on voluntary turnover
But don’t ignore involuntary
Make it a Company-Wide Effort
Hire the Right People
Increase Your
Leverage
UnderstandWhat
MotivatesThem
Be Transparent
Beat the Competiton
Engage Your Employees