Orchestral helps with fine tuning to drive people performance.
Proactive People Practices vs. Reactive
People issues are cost effective to resolve while they’re still a single note out of place, and before they turn into full discord. Here’s what waiting on this costs, and how staying in tune protects your bottom line.
Fine-Tuning the Numbers
A leader spending 20% of their time (up to a full day a week) off-script on people issues instead of focusing on driving revenue and production, that’s roughly $40,000 a year of leadership capacity spent troubleshooting instead of conducting the business forward.
The Business Case: 100 Employees, 15% Turnover
Here are the costs, and what changes when turnover drops 5 pts. to 10% with issues getting caught early instead of managed in crisis.
15 replacements × $30,680 average cost per turnover event. Drop turnover 5 points to 10%, and you save ~$153,400/year.*
Where People Cost Hides: Annual Impact
| Issue | Assumption | Current — 15% turnover | With Orchestral | Savings |
|---|---|---|---|---|
| ♭Team Conflict | 15 cases/yr | $70,500 | $35,250 | $35,250 |
| ♭Absenteeism | 10 employees (10%) | $25,000 | $12,500 | $12,500 |
| ♭Underperformance | 5 cases/yr | $47,500 | $23,750 | $23,750 |
| ♭Headhunter Fees | 10 hires/yr | $140,000 | $56,000 | $84,000 |
| ♭Bad Hires, Realized | 24% of 10 hires/yr | $67,200 | $26,900 | $40,300 |
| ♭Termination Gone Wrong | 1 case/yr | $65,000 | $19,500 | $45,500 |
| Total | $415,200 | $173,900 | $241,300 |
Add the $153,400 saved by reducing turnover plus the above giving your business a potential
Grand total of savings$394,700 / annually*Illustrative business case for a hypothetical 100-employee company with a blended average salary of $70,000 along with a leader compensation of $200k. “Current” reflects a 15% annual turnover rate; “With Orchestral” reflects turnover reduced to 10% (10 replacements per year). Headhunter-fee and bad-hire figures are calculated at the 10-hires/year volume.
♪ Ready to tune into your people?
Valerie Khan