Mark Dobson, Workplace Incentives Partner
Workplace Fundamental: Staff Turnover
Staff turnover is fundamentally expensive to any organisation. We refer to this expense as â€œthe big three bleedsâ€.
The first big corporate bleed is the loss of corporate memory. We all know that if we were to leave our role and hand it over to someone else, no matter how well the handover is, there are some things that we just canâ€™t teach that person. Theyâ€™re going to need to find out things, learn ways to do things. The longer youâ€™ve been in a role, the more little things you know that arenâ€™t necessarily teachable, rather discovered. If you look at the percentage of staff leaving, the turnover rate you have, thatâ€™s the percentage of corporate memory bleed you have.
The second big corporate bleed is the bleeding of money. Time and dollars are spent when recruiting a new employee. You have to onboard them, train them and probably have to spend money on someone to do that. First You have to hire a trainer or pay another member of staff to train the new recruit. Second, youâ€™ve got people that arenâ€™t working in their role – the new recruit isnâ€™t yet working and anyone training or helping them isnâ€™t working. Thereâ€™s a lag time with training someone new, you have to invest upfront before they can begin to earn revenue for the company.
The third big corporate bleed is the bleeding of growth opportunities. While you are desperately organising your company just to do fundamentally what it does, youâ€™re losing all opportunity to grow. Whatâ€™s more to the point, your competitors are growing whilst youâ€™re trying to maintain and survive!
The three big corporate bleeds are all fundamental expenses caused by staff turnover.
What you need is a staff retention strategy, or some sort of plan that makes work more rewarding. It basically has to engage staff. You have to look at what you need to do to engage staff, to make work more rewarding for them so they want to be at work, they are enthused to be your employee. Giving staff attention leads to retention and that allows a company to build on its knowledge and resources. A company can grow, minimise expenses, and therefore maximise profits if its staff turnover rate is low and maintained.
Work to reduce or prevent staff turnover and allow your business to grow.
About the Author
Mark Dobson is a motivation expert. Working with Workplace Incentives to promote key thinking and methods that should be considered to make work more rewarding. Staff Turnover causes corporate bleed. Loss of knowledge, time, and money.