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Sydney Hunsdale: The business case for retention - specialists v generalists

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The IPA hosted its Talent Adaptathon at Altitude in London on 7th October 2014 in association with Daniel Marks London. Sydney Hunsdale (Consultant, Former Global COO Razorfish & Chief CFO Vivaki EMEA) talked about investing for growth and the business case for retention - specialists v generalists. Get involved by visiting ADAPT Hub www.ipa.co.uk/adapt/talent and on Twitter #ipadapt.

Published in: Recruiting & HR
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Sydney Hunsdale: The business case for retention - specialists v generalists

  1. 1. Investing For Growth Sydney Hunsdale, Consultant Former Global COO Razorfish and CFO Vivaki, EMEA
  2. 2. Bottom line improvement Reduces employee turnover Increases performance and productivity
  3. 3. More competitive Operate more efficiently Achieve greater growth Deliver more profit ROI can range anywhere from 20 to 7000 %
  4. 4. Greatest Potential Asset Greatest Potential Liability
  5. 5. Largest single financial drain
  6. 6. 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
  7. 7. TURNOVER Recruiting Interviewing Administration Training costs Leaving costs Lost productivity Temporary coverage Higher comp package Overworked remaining staff Lost knowledge Strained client relationships Realisation that your asset has become an asset of your competitor
  8. 8. 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
  9. 9. 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
  10. 10. 16 RECRUITMENT REALITY 1,400 Acquisitions/Other +67 Leavers (36%) 1,200 443 328 Dec 11 Headcount: 1,084 1,000 Net 2011 Hires 175 Dec 10 Headcount: 909 Recruits +49% (Net 2011 Hires excl Acquisitions: 108) 800 2011 Headcount Flow HEADCOUNT To achieve an 11% net headcount growth, it required hiring 49% new staff
  11. 11. Tech Talent Higher turnover Demand far exceeds supply Cost and competition rising High vacancy rates Higher cost per hire Contributes to higher cost of turnover
  12. 12. …on voluntary turnover But don’t ignore involuntary
  13. 13. Make it a Company-Wide Effort
  14. 14. Hire the Right People
  15. 15. Increase Your Leverage
  16. 16. Understand What Motivates Them
  17. 17. Be Transparent
  18. 18. Beat the Competiton
  19. 19. Engage Your Employees

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