By Carrie S Ahmad, SPHR
Director of HR & Career Services, Turning the Corner, LLC
My husband and I went to a concert of the Baroque Chamber Orchestra of Colorado recently and I witnessed an inspiring phenomenon occur. As I watched the faces of the musicians, I could see pure joy as they poured themselves into work they loved. And the more the lead violinist became absorbed in her challenging music pieces and came alive, the more the orchestra around her engaged and played with rousing passion. It took my breath away to watch a group of people so deeply enjoy their work, follow their leader with delight, and create music that was not only fun for them, but also captivatingly fun for the audience.
When you think of the people who work with and for you do the words engaged, delighted, challenged, fun and inspired come to mind? If not, you may be in jeopardy of losing your best people.
Hiring is on the Upswing.
Are Your Employees Happy?
Yes, you can replace people if they choose to leave, but is that the right economic and cultural decision for your business? When a high potential, “shining star” employee leaves, the effect often is that other team members start to disengage and feel frustrated. Employees who set the standard for engagement, performance and potential also set the tone of the culture within your organization. If your best employees are leaving, you will be facing an undesired cultural shift within your business.
What Does it Cost to Replace an Employee?
Beyond the cultural cost, the financial cost is higher than most employers anticipate. When an employee leaves, it’s not just a salary that you have to account for; you also have to calculate the costs of:
- Time spent by department managers, HR and various team members on finding and selecting a new employee
- Lost productivity for:
- The role that was vacated (before the employee left as it is human nature to begin to disengage a bit before leaving, and after they are gone);
- Employees who begin to disengage out of frustration for having to step in to help with the additional workload and out of frustration of seeing a stellar employee leave; and
- All of the positions that lose productivity by having their time diverted to hiring and on-boarding efforts.
- Cost of time and resources spent to train a new hire
A report from CBS MoneyWatch stated that for normal employees making less than $50,0000 annually, the average cost to replace an employee is 20%. Need to replace an executive? The costs rise to as much as 213%! Obviously it makes more sense to keep your best people than to wave goodbye as they walk out the door.
How do you create an organization that drives employee engagement, satisfaction and high performance? It starts with an environmental scan. Do your employees feel challenged? Are they rewarded for top performance in ways that are meaningful to them? Do they see a bright future for themselves within your company?
Make Your Passion their Passion
If you want to avoid losing your best employees and to create an organization that makes beautiful “music” together, our team at Turning the Corner can help. We partner with our clients to assess their current state and create a work environment in which team members thrive and are dedicated to driving the success of the organization. Learn more about our Employee Engagement services by contact us at 720-446-8876 or www.turningthecornerllc.com.