Executive Summary

Driving down unwanted sales force churn using Chally’s actuarially validated sales profiles saved South Africa media group Media24 more than R4 million in 2006 -- a 500% return on investment

With a huge footprint in the magazine, newspaper, and electronic media markets, Media24/Naspers is South Africa’s most powerful media group. Media24 was driven to create a world class sales force, but was faced with the complex situation of dealing with a wide cross section of its publications all operating as separate business units and, very often, operating in direct competition with each other.

This highly competitive environment, combined with the expectation that sales teams will perform at the highest level possible, presented one of the biggest obstacles along Media24’s quest for excellence: a daunting 28% sales force churn.

Since its partnering with Chally SA, Media24 has adhered to a consistent recruitment process which utilizes HR Chally’s predictive interview and profiling tools. The results have been astounding:

• April 2004 to March 2005: 28% sales force churn
• April 2005 to March 2006: 19% sales force churn
• Result: 32% decrease in sales force churn

Looking solely at direct attributable costs (excluding opportunity and hidden costs) with conservative cost-of-recruitment figures, i.e., agency, advertising, re-training, interviewing, and administration fees, numbers can easily equal R30,000 to R80,000 for each hiring error, not including management time, opportunity cost, damaged relationships, et al. In conclusion, HR Chally SA saved Media24 more than R4 million last year. This works out to a 500% return on investment.

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