Page 59 - Successful Onboarding

48 • Successful Onboarding

Cautionary Comments
• Please note that the calculations for a given industry are not
numbers with which you should run to your colleagues. We
feel far more comfortable talking about the average impact
across industries than we do speaking about impact for a given
industry—given all of the year-to-year variables at play.
• Our analysis on market cap excluded the impact of improvement
in time to productivity (Gain 1) and raising the overall average
level of productivity (Gain 2) of your new hires, which is a huge
part of the Onboarding Margin! Why did we exclude these two
very large factors? Because the numbers were getting big enough
without it, and we simply felt far more comfortable making a
smaller claim.
• This entire analysis was done not with precision in mind, but
rather to determine with directional accuracy whether or not the
Onboarding Margin was worthy of our, and your, attention. We
think the results speak for themselves.

Notes

1. In modeling total industry impact, we treated the sum of the
benchmark companies’ net profits as a percentage of the total
net profit of an industry (Sources: Yahoo Finance Industry
Browser and NYU’s Stern Business School data). As a result,
the benchmarks’ net profit was a percentage of total industry
net profit:

• Aerospace & Defense: 64%
• Energy & Utilities: 62%
• Financial Services: 5%
• Healthcare: 18%
• Technology & Telecom: 87%
• Consumer Packaged Goods & Retail: 75%