How much of your budget is spent on remunerating your people: salary, bonuses, provision for retirement, … ? 10 million dollars? 100 million dollars? More?
Would you like to save yourself at least 0.5% to 1% of this annually?
There is a simple solution: cut your unplanned staff turnover by 1%.
It is very costly to lose someone you hadn’t wanted to lose. For lower-level staff, staff loss is generally reckoned to cost of the order of 50% of their total annual package, rising to 100% or more for senior people. And we haven’t even started to add in the cost of the knowledge and knowhow that walked out the door.
Improving how people feel about all aspects of their job is also likely to lead to improved customer service and to boost the discretionary effort people are prepared to make in improving business performance.
A process for managing People Value can facilitate an ongoing dialogue between you and your people about what needs to be done to help them do their best work.
(See Chapter 6 of Analytics for Leaders.)