You are faced with lots of competing options for your talent development budget. I dare you to find a better investment than entrusting Executive Springboard with leadership assimilation.
Let’s do the math.
Studies by the Harvard Business Review, Heidrick & Struggles, Gartner and the Corporate Leadership Council place the odds of a failed senior hire at somewhere between 40 and 60%. It is probably a mixed bag when you consider other ways leaders begin new roles --- lower in promotions or reassignments, higher in mergers. We will conservatively use a probability of failure of 40%.
Let’s assume that a senior hire has a $250K salary and an annual bonus of $100K. And let’s assume that this leader lasts one year. What are the costs of a failed adventure?
The expected value of a failed senior hire is 40% x $675K, or $270K.
Here is our track record: Well over 90% of the executives Executive Springboard mentors are still in place after 18 months. Let’s assume our failure rate were as high as 10%. By reducing the risk of failure from at least 40% to 10%, we decrease the expected value of failure from $270K to 10% of $675K, or $67.5K.
The improvement in expected value is $202.5K. The cost of an Executive Springboard engagement is $12K for eight months of onboarding. By dividing the improved expected value by the cost, the return on investment for using Executive Springboard is 1687.5%. That’s almost $17 for every dollar invested. How many HR initiatives approach this ROI? And it is reasonable to argue that, by taking more aggressive positions in risk improvement or executive compensation, or by monetizing soft costs, the ROI would rise to over 2500%.
We attribute our success in improving executive retention to several factors:
Over the past six months, we have innovated to improve your ROI even more. Like, how does an ROI of infinity sound? That happens when your investment is zero. And we have two ways for that to happen.
Getting your key employees off to a great start seems like a good thing to do. But our analysis suggests that investing in Executive Springboard’s onboarding mentoring is just about the best thing you can do.
Executive Springboard President Steve Moss shares learning from years as an executive and a mentor.