Other Topics: Mastering HR Process; Global people management and international expansion; Enhancing employee engagement; Providing shared services and outsourcing HR; Managing diversity and inclusion; Managing change and cultural transformation; Actively using web 2.0 for HR and managing associated risks; Strategic workforce planning; Delivering critical learning programs; Managing corporate social responsibility; Transforming HR into a strategic partner; Health and security management; Managing flexibility and labor costs; Restructuring the organization; Managing work-life balance; Managing an aging workforce

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Delivering on recruiting

Onboarding of new hires and retention

Managing talent

Improving employer branding

Performance management and rewards

Developing leadership

3.5x 2.0x

2.5x 1.9x

2.2x 2.1x

2.4x 1.8x

2.1x 2.0x

2.1x 1.8x

Economic Influence is Discernible in all HR Topics but is Most Pronounced in Six…

Revenue growth

Profit margin

The impact that the most capable

companies achieve over the least

capable companies

Topic in which most capable and least

capable companies were compared

Meet Smart Inc. and Dumb Inc.Smart Inc.

“Optimized” Talent Acquisition functiono Average CPH = $6,465o Average new hire attrition = 10%o Average Time to Fill – 44 days

“Reactive and Tactical” recruiting functiono Average CPH = $3,258o Average new hire attrition = 17%o Average Time to Fill – 55 days

SMART $1Bn Turnover 10,000 employees 1,000 annual hires Avg compensation = $50k

DUMB $1Bn Turnover 10,000 employees 1,000 annual hires Avg compensation = $50k

DUMB

Smart Inc. spends 2x more on hiring than Dumb Inc…

1,000 1,000$6,465 $3,258

$6,465,000 $3,258,000+$3,207,000 -$3,207,000

Cost Per HireNumber of hires per annum

Average Cost Per Hire

Total Annual Cost Per Hire

Difference – Smart Inc. vs Dummy Inc.

SMART DUMB

40% less new hire turnover equates to $4.4M

1,000 1,00010% 17%

$6,250,000 $10,625,000-$4,375,000 +$4,375,000

Cost of First-Year AttritionNumber of hires per annum

First-Year Attrition Rate

Total Annual Cost of Y1 Attrition

Difference – Smart Inc. vs Dummy Inc.

100 170$50,000 $50,000

Number of Y1 leavers

Average Annual Salary

1.25 1.25Cost of attrition – salary multiplier

SMART DUMB

20% faster time to fill equates to $2.5MSMART DUMB

$1Bn $1Bn10,000 10,000

44 days 55 days$20,000,000 $25,000,000

Lost Opportunity – Time to Fill)Total Annual Revenue

Number of employees

Average Time-to-Fill

Lost Gross Opportunity Revenue

NB: Average Time-to-Fill figures taken from Bersin by Deloitte

$100,000 $100,000$455 $455

Average annual revenue per employee

Average revenue per employee day (220 days)

1,000 1,000Number of annual hires

$227 $227$10,000,000 $12,500,000

Average cost per employee day (220 days)

Total salary saved for Open roles

$50,000 $50,000Average annual salary

$10,000,000 $12,500,000-$2,500,000 +$2,500,000

Lost Net Opportunity Revenue

Difference – Smart Inc. vs Dummy Inc.

So, is it smart by name & smart by nature?

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Cost

Quality

Agility

+$3,207,000 -$3,207,000

-$4,375,000 +$4,375,000

-$2,500,000 +$2,500,000

-$3,668,000 +$3,668,000

The ResultsDifference in Cost Per Hire

Difference – First-Year Attrition

Difference – Lost Opportunity/Time to Fill

Total Difference – Smart Inc. vs Dummy Inc.

SMART DUMB

$3.7M