CS No. 991120 – Financial Services Fortune 500 Financial Institution – Columbus, Ohio.
Coaching a SVP and his management team in successfully delivering a highly visible initiative.
A structure and strategic approach to employee satisfaction began within our IT Group in February 2000. The group, at that time, had an employee satisfaction level of 62% (as measured by an employee satisfaction survey administered by a third party.) This team was just forming, as the result of the merging of five separate IT organizations, therefore, metrics measuring turnover of the team were not available.
The group was faced with the following:
- Lack of workability
- Breakdowns in delivery schedule
- Breakdowns in the internal communication structure
- High turnover rate
The Predictable Future
- The group would continue to struggle with retention and employee turnover
- Overall satisfaction at work would continue to be at the low end
- Approximately a $30-50M of unnecessary company spending
After seven months of coaching initiatives, the staff was surveyed again in September 2000 and the results were evident:
- A 94% response rate – the level of employee satisfaction went from 62% to 87%!
- Performance metrics revealed that in an industry that would normally have a 22% success rate of “on time” and “within budget” projects, the IT group was achieving a 96% success rate on projects.
- In addition, the voluntary turnover rate for the team was 4.95% in an industry that struggles with a 20% average turnover rate.
- Reduced turnover with a staff of 164 IT professionals saved the organization over $2,000,000 for the year 2000.
A breakthrough in our employee satisfaction improved retention from 80% to 95%. The business results are clear:
- The average replacement cost for an IT professional is $60,000.
- The organization has 5,000 IT employees.
- The organization’s current turnover rate for IT employees averages 20%.
- The 20% turnover rate costs the organization approximately $80M a year.
- A 5% turnover rate would cost the organization $20M a year.
- The estimated annual savings is approximately $40,000,000 a year.
What the client say?
“High employee satisfaction produces better business results. High employee satisfaction also saves money. This is a clear and convincing business case, that every leader on every team should take on to create a working environment with high performing employees, with high employee morale, and with high retention, which results in low turnover rates. The bottom line, High Impact Management Coaching methodology works.”
Senior Director HR – Organizational Development
The R.O.C (return On Coaching):
Based on internal management evaluation conducted by the company’s CIO office, these breakthroughs in cultural shift will generate approximately 24 times R.O.I over the next 18 months!