In our comprehensive review of Talent Acquisition, we completed a detailed analysis of historical sales, hiring and attrition data in addition to interviews and focus groups with key stakeholders, including senior operations leaders. Facilitated a discussion with senior leaders and key hiring stakeholders regarding learnings, observations and recommendations. Finalized goals and tactical next steps for the organization to implement.
We determined that the problem for the firm was not as much recruiting as it was attrition. We showed that 90% of all hires were attrition-related backfills and less than 10% were in support of company growth. It was also demonstrated that vacant roles cost the company over $20 million per year in lost revenue, driven by both customer walk-outs and reduced productivity of new hires. A large % of all turnover was employees with less than 1 year of tenure. We provided detailed recommendations to reduce attrition through manager training, redesigning compensation structure for managers; and improving candidate and employee communications.
It is estimated that these recommendations will produce between $2 million and $5 million of incremental revenue within one year of implementation.
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