Companies need to be very careful when making decisions about the compensation of their employees. To deny a successful player in the organization a reasonable increase can be a very expensive mistake. Attempting to recruit a good employee will inevitably cost the organization much more money, taking into account the starting salary required to “recruit”, not to mention the cost in time and money to train and replace to bring up to date. to the full production, as well as the opportunity cost, to have created a gap in the company knowledge of the company.
Of course there will be life events that keep good employees away from a business that is unstoppable. But when companies have the opportunity to keep good employees, they should do everything in their power. Companies who want to retain their best talents should be prepared to show appreciation, compensate them and treat them with the respect they deserve. In the end, it will not be an excellent product or service or technology that will make a business successful – great people doing great business. Appreciate the men and women who devote their time and talent every day to making your business a success, because they are the people who cannot be replaced.
Reason why highest producing employee leaves
- Many people like to say, “people do not leave jobs, they leave managers,” and that’s right. The manager is the first point of contact of the company with an employee, if this contact is bad, the relationship with the company will be bad and the employee will not stay long. Often it is not someone who is a “bad manager” in itself, but rather poor management practices. Fortunately, many of them can be fixed.
Lack of opportunities for growth and development
- After all, many employees are not concerned with having a good manager or coming home early, but they care about growth and developing as an employee and as a person. If you cannot grow in your job, you probably will not stay there. People want to be inspired and then given the opportunity to act on this inspiration. If you do not provide them, they will find someone who will. Especially your best employees.
The real cost of losing your highest producing employee
- Lost Productivity – A new employee can take a year or two to reach the productivity of an existing person.
- Loss of engagement – other high-turnover employees tend to break up and lose productivity.
- Customer service and errors – for example, new employees need more time and are often less able to solve problems.
- Training costs – for example, over two or three years, a company will probably invest 10 to 20% of the salary of one or more employees in training
- Cultural implications – each time someone leave, others take the time to ask why.
- One of the reasons why the actual staff turnover is unknown is that most companies have no tracking, recruitment, hiring, referral, training, loss of productivity, dissatisfaction systems have potential customers or business loss. This requires cooperation between departments (HR, Finance, Operations), ways of measuring these costs and reporting mechanisms.
Tips to help you keep your best employees
You cannot afford to lose your best employees. Here are some tips to keep them:
- Good communication is the key – always be ready to talk to your employees and listen to them, if they have problems or concerns, you will not know that there is a problem if you do not communicate.
- Create Growth Opportunities – Always make sure your employees can grow and do the work that inspires them.