Thursday, January 24, 2013

Mud cake and employee turnover rate!

Farewell cake increases as employee turnover rate increasesLook, don’t get me wrong, some turnover is a healthy thing and has to be expected. In fact when unemployment is at an all time low, you’ve got to expect it. The problem is that when someone leaves they walk out the door with knowledge. Knowledge that they have gained while working at your business, so essentially you’ve paid for it, and now it’s walking out the door. In fact, you’ve thrown a farewell party for it, eaten a slice of farewell mud cake for it, and probably contributed to a farewell present for it. And you can never get it back. We all know that it costs between 2 and 50 times the annual salary to replace someone, depending how senior they are.

Some people say we are all created equal. But if that person you’ve just farewelled is a superstar for your business, you probably don’t believe it. When it comes to business we are constantly told that there are some truly shining stars out there. Stars that the business relies on to thrive. Stars that you cannot imagine losing, that would set your business back years if they left. But we must be realistic. Everyone moves jobs. Everyone. You need to expect it. For some it takes months, for some it comes after long service leave, but it will happen. So don’t wait until its too late. Start getting that knowledge out of the head of your super stars well before things are on the cards. Not only will it secure your business from farewelling years of knowledge, but it will also give other people the chance to step up and contribute in a new area – which … guess what … might make them stay longer and perform stronger too. What do they call that. Ah yes, win win.

Call us on 1300 73 83 71 for help with your employee turnover rate 

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