A FORRESTER TOTAL ECONOMIC IMPACT STUDY The Total Economic ImpactTM Of Cornerstone Galaxy Cost Savings And Business Benefits Enabled By Cornerstone Galaxy NOVEMBER 2024
“Cornerstone Galaxy offers so many resources that it’s hard for it to not meet the needs of your organization and your people as they all navigate the complexity of the business environment.” — Senior learning management specialist, manufacturing
Key Findings Key Metrics Cornerstone Galaxy is an AI-powered workforce agility platform that organizations use to build high-performing, future-ready people and close the widening workforce readiness gap. With Cornerstone Galaxy, organizations can identify skills gaps and development opportunities, retain and engage top talent, and provide multimodal learning experiences to meet the diverse needs of their modern workforce. . ROI 443% BENEFITS PV $26.54 million NPV $21.65 million PAYBACK <6 months $6.3M $9.1M $1.6M $2.1M $7.4M Value of upskilled employee base Savings from reduced time to hire Reduced employee time to productivity Content consolidation savings Compliance savings Benefits (Three-Year)
Methodology Interviewees FINANCIAL MODEL FRAMEWORK Constructed a financial model representative of the interviewees using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees. COMPOSITE ORGANIZATION Designed a composite organization based on characteristics of the interviewees’ organizations. INTERVIEWS Interviewed five decision-makers at organizations using Cornerstone Galaxy to obtain data with respect to costs, benefits, and risks. Industry Role Employees Logistics Head of group talent acquisition, learning, and growth 600,000 Media Head of learning 31,000 Airline People director 23,000 Manufacturing Senior learning management specialist 1,150 Legal HR systems and analytics manager 1,000
Total Benefits Value of upskilled employee base Savings from reduced time to hire Reduced employee time to productivity Content consolidation savings Compliance savings $26.54 million three-year total benefits PV
$6.3 million three-year benefits PV Cornerstone Galaxy enables the composite organization to upskill employees, promote from within, and implement effective succession planning, reducing the need for external hires. Interviewees reported improved internal mobility and talent retention, leading to cost savings of $6.3 million over three years for the composite organization. In prior environments, interviewees’ organizations lacked the visibility into the skills and capabilities of their workforce and the ability to connect their employees with the resources they needed to increase or refine their skills. With Cornerstone Galaxy’s integrated platform, the interviewees’ organizations could provide personalized, role-based learning pathways that fostered continuous development and career progression, reducing recruitment efforts and enhancing workforce readiness. External hire cost savings of $6.3 million over three years due to an upskilled employee base. “By upskilling our workforce, we filled 70% of our management positions internally, which saved us substantial recruitment costs.” — Senior learning management specialist, manufacturing
“Our turnover rate dropped by 15% after implementing Cornerstone Galaxy, allowing us to focus on developing our existing talent.” — Senior learning management specialist, manufacturing
$9.1 million three-year benefits PV Cornerstone Galaxy helps reduce the average time to hire for the composite organization from 87 days to 43 days. Expediting the recruitment process saves the composite organization more than $9.0 million in HR productivity over three years and enables faster onboarding of new talent. With Cornerstone Galaxy, interviewees’ organizations consolidated their talent acquisition tools into a seamless, transparent, data-driven system. Automated and centralized recruitment results in a 49% reduction in time to hire. Reduction in time to hire 87 to 43 days
“[In our prior state], we really wanted to reduce the amount of manual administration. Now, we have a clear line from application to onboarding, which was not possible before. This allows our HR folks to take on more strategic work with the extra time.” — HR systems and analytics manager, legal
$1.6 million three-year benefits PV Cornerstone Galaxy streamlines the onboarding process for the composite organization, cutting training from five days to two and reducing associated travel expenses. This efficiency improvement allows employees to become productive faster, saving the composite organization $1.6 million over three years. In prior environments, inefficient and non-role-based-targeted onboarding processes delayed start times for new employees at the interviewees’ organizations. Cornerstone Galaxy integrated personalized learning paths and skills tracking into the onboarding process, ensuring that employees receive swift, tailored training at scale and promoting an agile organization. Reduction to in-person training time From 5 days to 2 days A 40% reduction in in-person training time accelerates the onboarding process for new employees.
“Our supervisors would hire someone, and they would have to wait at least a week — sometimes two weeks — before they ever saw their team member on the floor. This is a huge hit when you’re a manufacturer and you need boots on the floor!” — Senior learning management specialist, manufacturing
$2.1 million three-year benefits PV By implementing Cornerstone Galaxy, the composite organization discontinues third-party content subscriptions and reduces its multiple learning suppliers down to one learning platform. This consolidation simplifies admin, billing, and content curation and creation, and it allows employees to access high-quality learning resources in multiple languages and modalities from a single platform. Content consolidation drove $2.1 million in cost savings over three years Content consolidation savings worth $2.1 million over three years “We saved on external content subscriptions and reduced the time spent curating and creating new content thanks to Cornerstone Galaxy’s vast library.” — Head of group talent acquisition, learning, and growth, logistics
“We’ve created visibility by putting Cornerstone Content Subscriptions into the platform. Now, people can access the platform for everything rather than not finding anything and going and buying new content.” — Head of learning, media
$7.4 million three-year benefits PV Improved training and automated compliance tracking through Cornerstone Galaxy significantly reduces the downstream risks of noncompliance for the composite organization. By ensuring timely and consistent completion of regulatory training, the composite organization avoids potential fines and improves safety protocols, enhancing both employee well-being and company reputation, and saving the composite organization $7.4 million over three years. Compliance savings worth $7.4 million over three years “We were able to show auditors our comprehensive training records, which likely helped us avoid fines that could have reached into the millions.” — Head of group talent acquisition, learning, and growth, logistics
“As a food manufacturer, what we do affects the public. The biggest risk for us is someone not knowing something vital to food safety or human safety and causing an issue out in the market. Everything we do is a risk to our customer’s brand, and we take that very seriously.” — Senior learning management specialist, manufacturing
Unquantified Benefits Additional benefits that customers experienced but were not quantified include: Increased administrative efficiency gains Enhanced employee experience Improved experience for managers Improved candidate experience “The holistic approach [of Cornerstone Galaxy] will allow us to identify skill gaps, plan for future talent needs, and enable employees to pursue diverse career paths within our company.” — People director, airline
“With Cornerstone Galaxy, we‘ve seen a 40% increase in employee satisfaction, which correlates directly with our reduced hiring costs and improved productivity.” — HR systems and analytics manager, manufacturing
Appendix A: Total Economic Impact Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders. . Total Economic Impact Approach Benefits represent the value delivered to the business by the product. The TEI methodology places equal weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of the technology on the entire organization. Costs consider all expenses necessary to deliver the proposed value, or benefits, of the product. The cost category within TEI captures incremental costs over the existing environment for ongoing costs associated with the solution. Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. Having the ability to capture that benefit has a PV that can be estimated. Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.” ! Present value (PV) The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PV of costs and benefits feed into the total NPV of cash flows. Net present value (NPV) The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made, unless other projects have higher NPVs. Return on investment (ROI) A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs. Discount rate The interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%. The initial investment column contains costs incurred at “time 0” or at the beginning of month 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the eighteen-month period. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur. Payback period The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.
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