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Unrecovered Gap

Definition​

Unrecovered Gap is the portion of lost sales capacity that has NOT been regained within a measurement window. It represents the ongoing capacity deficit from attrition, restructuring, or other losses.

Why It Matters​

  • Quantifies actual capacity shortfall vs. target
  • Drives hiring urgency and backfill prioritization
  • Impacts quota setting and revenue forecasting
  • Reveals true cost of attrition beyond replacement cost

Formula​

Unrecovered Gap = Lost Capacity - Recovered Gap

Or:

Unrecovered Gap = Target Capacity - Actual Capacity

Where capacity is measured in RRE or dollar quotas.

Example Calculation​

Single Quarter View​

Starting State:

  • Target capacity: 25 RRE
  • Actual capacity: 25 RRE
  • No gap

Mid-Quarter Events:

  • 4 reps leave (4 RRE lost)
  • 2 backfills hired, both at 40% ramp by quarter-end
  • Recovered: 2 × 0.40 = 0.8 RRE

Quarter-End State:

  • Target capacity: 25 RRE (unchanged)
  • Actual capacity: 25 - 4 + 0.8 = 21.8 RRE
  • Unrecovered Gap: 3.2 RRE

Impact on Quota Attainment​

If each RRE should produce $100K/quarter:

  • Lost potential: 3.2 RRE × $100K = $320K
  • This $320K shortfall affects team attainment even if remaining reps hit 100%

Time Horizons​

Same-Quarter Gap​

What capacity deficit exists by quarter-end?

Rolling Gap​

What's the ongoing deficit as new attrition occurs?

Planning Gap​

What gap will exist in future quarters given current hiring pipeline?

Calculation by Dollar Quota​

Unrecovered Gap ($) = (Lost Headcount × Avg Quota) - (Backfill Capacity × Avg Quota)

Example:

  • 3 AEs leave, each with $400K quota = $1.2M lost
  • 3 backfills hired, at 50% ramp = $600K restored
  • Unrecovered Gap: $600K

Key Drivers​

  1. Attrition Rate: Higher churn = larger gap
  2. Time-to-Hire: Slower hiring = longer gap
  3. Ramp Time: Longer onboarding = prolonged gap
  4. Backfill Approval Lag: Delays between exit and job req approval

Business Implications​

For Sales Leaders​

  • Justifies over-hiring to buffer against attrition
  • Explains revenue misses despite "hitting headcount"

For Finance​

  • Quantifies true cost of turnover
  • Informs headcount planning buffers

For RevOps​

  • Drives proactive hiring models
  • Supports capacity-based quota setting

Best Practices​

  1. Report Monthly: Track gap trend, not just point-in-time
  2. Break Down by Role: Different roles have different impacts
  3. Forecast Forward: Project gap 2-3 quarters out
  4. Set Acceptable Thresholds: Define "too much" gap (e.g., >5% of target capacity)

Common Pitfalls​

  • Only measuring headcount gap, not capacity gap
  • Not adjusting quotas for unrecovered capacity
  • Assuming the gap will "work itself out"
  • Ignoring compounding effects of continuous attrition

References​

  • Standard metric in sales capacity planning
  • Also known as "capacity deficit" or "open capacity"
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