RMI Case Studies
Case Study
Fortune 100 CompanyIndustry:
Information TechnologyProblem:
Attrition of Senior Technical StaffSolution:
Define and Address Attrition DriversThe scene is just prior to the dreaded 'Year~2000' ... and employers in the Information Technology (IT) sector are having difficulty sourcing and retaining their IT staff ... who are now hot commodities within a wild west culture. All protocols are gone, gentleman's agreements regarding 'raiding' are dismissed ... and now the head hunting scene is in a free-for-all. Anything goes. If you can beg, borrow (or pillage) staff ... anything was considered acceptable, in the pursuit of getting your IT 'source code' in compliance with the impending 'Year~2000 roll over. Everything was at stake.
The client, had not previously given full and careful consideration to what went on within their 3-Tier architecture environment of Mainframe, Client Server and Desktop environments within the enterprise. Not much was known of this department (their skill & experience and how that translated into value) and as long as it 'produced' ... well no one much cared. By the time RMI was called in, this is what the auditors were looking at:
- Within a department of 1200 staff, attrition was now @ 28%
- That represented a net loss of approximately 336 staff a year (and growing)
- At an average salary of $80k, that represented a net loss of >$26,880,000 with no ROI.
RMI quickly engaged the staff to assess and define the 'drivers' behind the attrition. In a participative and inclusive process ... an intervention was designed, developed and implemented. By the time RMI disengaged, the auditors were looking at:
- Within 10 months, attrition was reduced to 1%
- The FTE's of 1200 were now only losing 12 staff annually @ $80k per staff
- For a net loss of $960,000
- For a cost recovery of $25,920,000
With ROI and ROE in the millions of dollars ... this Fortune 100 company became one of RMI's boldest cheerleaders. Staff were respected and their employment value proposition returned. Shareholders and corporate stewardship were honored, and the fiduciary integrity of the client reestablished.
Rick Kneeshaw
Rick@RMInnovations.ca
Resource Management Innovations