During the past several months, we’ve discussed the need to be
clear when interviewing people who are interested in your company
and how to make sure that when a hiring decision is going to be
made, everything is covered in the offer. Now the new person
is on board and has been performing at or above expectations.
Everyone is satisfied this employee is going to do just fine and you
can move on to the next level of projects. For most, the
conversation would end here.
The price of
investments
Let’s take a moment to consider what
just transpired to acquire that new employee. In most cases, a
requisition was approved and a search conducted with the use of
outside talent to find and present qualified people. A
considerable investment—notice we didn’t say cost—was made in the
subsequent interviewing, hiring, and on-boarding process (often
requiring relocation). There is also the amount of
productivity lost while the search process is engaged, as well as
the productivity that is not fully realized while the new employee
“gets up to speed.” Depending upon the level of responsibility
for this position, the investment can easily reach into the low to
mid-six figures. Several companies have put this figure
anywhere from $200,000 to $300,000.
You go to great lengths to protect your assets. You have
comprehensive insurance policies that protect your physical assets
and elaborate policies and programs to attend to the health and
welfare of your employees. You even have personnel on staff
for the sole purpose of designing and implementing effective
training and safety programs to further ensure that your employees
have a safe and productive environment in which to work. The
cost of these programs and policies are even factored into the value
of the products and services that you provide.
However, what are you doing to protect the emotional and
intellectual assets you have, specifically those of your
employees? The majority of today’s workforce is not working
for their original employer. They have left previous employers
in their search for a better career or opportunity. If you
were to ask yourself, “Why did I leave some of my previous
employers?” somewhere in those answers would be, “Because of
perceived indifference by my employer—they didn’t appreciate
me.”
Remember that talent we mentioned that assisted you in your
search? Well, those recruiters are still out there.
Certainly not the people you have a relationship with, but others
just like them who are always looking for high-level achievers, much
like the one you just hired.
The price of
un-appreciation
We’re already in the second half
of the year, and as we’ve mentioned before, recognition and reward
are keys to retaining staff. A well-placed comment and
recognition of a job well done is an excellent return on your time
invested. However, most employees still require more practical
rewards. Ask yourself what kind of programs you have in place
that will help ensure the retention of your personnel. If you
have bonus/profit sharing programs, are they attainable and are they
being paid out on a regular basis? If not, it’s probably time
to revisit and adjust these programs.
Nothing is more demoralizing than having a bonus/profit sharing
program that rarely pays out or even worse, one that looks like it
will and at the last minute something happens. Do you have any
kind of year-end recognition program, dinner, or ceremony? Do
you just meet with your staff and let them know how well they’re
doing? If you’re doing any of the above-mentioned things, are
there ways you can improve them? If you aren’t doing these
things, why aren’t you?
Before you worry about how much it’s going to cost, remember
the amount you’ve already invested and consider how important it is
to protect that investment. Also, don’t forget the talent out
there that’s always looking for a high-level achiever who may not be
feeling appreciated.
(
As always, we value your input regarding the content for
our newsletter. If you have any ideas or suggestions for future
topics, be sure to contact us at dan@consearch.com . We look
forward to hearing from you.)
