…is more than just hard to find, it’s expensive too
[dropcap]W[/dropcap]e all know the standard cliche about good help being hard to find, but what about the fact that it is expensive as well? When an employee leaves your operation there are quantifiable costs that you can see, including running help wanted ads, recruiting fees, sign-on bonuses, relocation fees, etc. You can save your company some money by focusing on retention rather than recruitment.
Above and beyond the direct costs of a new hire, it is the indirect costs that really pile up. When an employee leaves, they take away all the skills and knowledge which they acquired at your expense! If they were in a customer-facing position, they also take away valued relationships with your customers – critical in a relationship-based industry like the motorcycle market. Regardless of the position, other departments run understaffed as you search for a replacement and then there is the loss of productivity and time it takes for the infamous “learning curve” that continues even after a qualified candidate is found.
Some experts say that the cost of replacing an employee can amount to more than three times an employee’s annual salary depending on how much time it takes to fill that position. Direct costs alone can account for upwards of 80 percent of a position’s annual salary. Obviously, we’re not talking about an entry-level tech here, but senior managers don’t come cheap. Part of these costs come from an increase in base compensation required for the new employee. A rule of thumb is you should plan on increasing the position’s salary anywhere from 12 to 15 percent.
How To Keep Your Employees From Getting Happy Feet
Motivating employees isn’t just about giving raises, according to the folks at Practical Business Training (practicalbusinesstraining.com) “Believe it or not, money is not the biggest motivator. But what is?” PBT is offering a “Motivating Your Employees” webinar to find out the best ways to motivate employees and keep them happy in the workplace.
[pullquote]“Replacing an employee can amount to more than three times an employee’s annual salary depending how much time it takes to fill that position.”[/pullquote]
“Everyone can motivate their employees – whether you’re a small business owner that can’t afford many perks such as job sharing or big bonuses or a mid-size to large company – there are many ways to motivate your employees to work hard and be happy at work,” according to the PBT spiel.
I would like to point out that I am not affiliated with Practical Business Training in any way, shape or form. I just like the sound of what the company is offering.
Using PBT’s training, you can:
▪ Motivate employees without money
▪ Make employees happy and loyal at the workplace
▪ Lower absenteeism and turnover rates
▪ Empower your employees
Editor’s note: Stay tuned for more from Alex in upcoming editions of MPN as he continues exploring the various employment issues the powersports industry is facing from both an employer and employee’s perspective
