Every time an employee quits, it creates disruption and costs your business approximately 1.5 times his or her salary to replace them. Therefore 1 person on $65,000 will cost the business $97,500 to replace! How?
Think about the cost to the business of a disengaged employee, time and cost to recruit a new person, time and cost to train the new employee, time it takes for the new person to build their work capacity to that of the previous employee, let alone the impact on other employees.
But not only does it cost us financially, the overall effect of a high turnover rate can erode both business direction and morale.
According to a Gallup and Forbes survey the 10 top reasons why people leave are controllable by the employer!
So why do people leave?
- Relationship with their boss – this is the No. 1 reason.
- Bored and unchallenged by the work itself (underwhelmed)
- Contribution of work to the business goals – (purpose)
- Autonomy and independence (micro-management)
- Relationships with co-workers (trust, transparency and courageous conversations)
- Opportunity for promotion
- Overloaded with work (stressed)
- Organization’s financial stability (security)
- Vision, purpose and values of the business (knowing the connect between what I do and the company vision)
- Overall culture. Management’s recognition of employee job performance. (Acknowledgement)
So we know that replacing an employee can cost up to 1.5 times their annual income but let’s consider the cost if they don’t leave. If they stay but are not engaged!
For the purpose of the exercise: if you have 20 employees, 10 of which are working at 60% capacity. We know that people cannot work at 100% capacity all of the time, so let’s assume they work at 80% capacity.
|Employees||Salary||% engaged||Paid time not worked||Cost to the Business at 100%
|Cost to the Business at 80%|
So what can you do to prevent this?
For a short time we are offering an
Obligation free strategy session (Valued at $550)
whereby we’ll help you create a learning & development strategy plan.
In the process of developing your strategy plan we’ll discuss the following items because they are directly linked to why people leave or why they disengage:
- Getting clear about and how to share your company’s vision, purpose and values.
- Create a plan to develop your Managers and Leaders in all constructive leadership principles.
- Build self-awareness through giving employees opportunities to discover their strengths and weaknesses and support them in developing all areas.
- Understand different personality styles and their needs so you can adapt and be flexible.
- Engage Managers and Leaders in building relationships using highly developed communication skills.
- Address issues and conflict effectively and as early as possible.
- Be clear about expectations and accountabilities to then allow autonomy.
- Be open to giving and receiving feedback on a regular basis (not just at the end of year performance review)
If you have already decided to take advantage of our offer of a free strategy session we’ll get you started straight away. Simply call us on 0417 982637 or email us.
- We’ll set up a time for our strategy session meeting and then we’ll send out a questionnaire for you to complete prior to this meeting. This will give you time to think and allow us to maximise the time we spend together.
- In our meeting we’ll discuss your answers in more detail and identify gaps.
- We’ll explore and document all the options on how to close these gaps.
- I’ll take all this information away and formulate your Strategy Plan
- We’ll schedule another time for me to present to you your strategy plan
So don’t hesitate, contact us now on 0417982637 or email us