Benchmarking…How Do You Compare?

Every two years, the Investment Recovery Association funds a research project in concert with the highly-regarded Center for Advanced Purchasing Studies (CAPS) at Arizona State University. Here is a recap of recent results from other investment recovery departments, showing the value of IR activities in the supply chain:

  • The ratio of gross revenue to total operating expense was 18, giving a benefit to cost ratio of 18 to 1 for the Investment Recovery Department!
  • The average number of transactions per investment recovery employee was 246.5.
  • We are the only organization that provides certification for the investment recovery profession.
  • Gross revenue per transaction was $85,381.
  • The average benefit provided by each investment recovery employee was $1,918,947!
  • Gross sales as a percentage of gross revenue was 66.18 percent.
  • We are the only organization that provides certification for the investment recovery profession.
  • Net sales as a percentage of gross revenue was 59.08 percent.
  • Net sales as a percentage of gross sales was 90.39 percent.
  • Internal transfers/redeployment activity as a percentage of gross revenue was 27.62 percent.
  • Cost savings as a percentage of total gross revenue was 9.64 percent.
  • There was one investment recovery employee for every 4,789 company employees.
  • There was one professional (exempt) investment recovery employee for every 7,155 company employees.
All revenue and cost numbers refer specifically to investment recovery dollars. These benchmarks are based on data supplied by 74 investment recovery departments, with average company sales over $15 billion.