Page 55 - Successful Onboarding

44 • Successful Onboarding

• Technology & Telecom: $7.3B
• Consumer Packaged Goods & Retail: $2.8B

These are pretty astonishing numbers. Yet we were not finished. Although
these figures reflect current attrition rates, we wondered what could hap-
pen if onboarding could reasonably help attrition. How much would
industries actually save?
To quantify the potential savings of a robust Onboarding program, we
assumed that attrition rates would drop to current industry best-in-class
standards. Note that we were not pushing the envelope far here. We were
not asking for attrition levels to redefine themselves in any seismic way;
rather, we were assuming a scenario in which best in class results became
the norm. Based on secondary research, we assumed the following best-
in-class attrition rates for the following industries:

• Aerospace & Defense: 10% (vs. 12% previously)
• Energy & Utilities: 10% (vs. 15% previously)
• Financial Services: 10% (vs. 15% previously)
• Healthcare: 9% (vs. 12% previously)
• Technology & Telecom: 10% (vs. 15% previously)
• Consumer Packaged Goods & Retail: 8% (vs. 10% previously)

Applying these new best-in-class attrition rates to the same cost of attrition
calculations preformed for current attrition rates, we determined that the
cost of attrition with a robust Onboarding program would offer significant
cost savings. By industry, the cost savings potential was as follows:

• Aerospace & Defense: $973M (total cost of $4.7B vs. $5.8B
previously)
• Energy & Utilities: $1.0B (total cost of $2.1B vs. $3.1B previously)
• Financial Services: $30B (total cost of $60.5 vs. $90.7B previously)
• Healthcare: $2.8B (total cost of $8.4B vs. $11.3B previously)
• Technology & Telecom: $2.4B (total cost of $4.9B vs. $7.3B
previously)
• Consumer Packaged Goods & Retail: $568M (total cost of $2.3B
vs. $2.8B previously)