Employees who jump ship cost business thousands annually
By Leanne Hoagland-Smith September 23, 2013 6:58AM
Leanne Hoagland-Smith. | Provided photo~Sun-Times Media
With the economy starting to pick up steam, more and more employees within the workforce are looking to jump ship. This potential Workforce Tsunami appears to be across industries and across positions.
The Randstad Manufacturing Employee Confidence Index, in its most recent polling data (April, May and June 2013), revealed four in 10 workers are likely to look for a new job in the next 12 months. This was an 18 percent increase from the previous quarter.
Earlier this year, a Career Builder survey revealed in 2012, 32 percent of businesses lost their top talent and for 2013 these same executives expect workforce loss may increase to 39 percent.
Losing employees is expensive and losing top performers even more so. Finding good help is harder today than ever before. According to the Society for Human Resources Management, the cost of a losing an employee ranges in the thousands of dollars. If the employee is in a higher position and a top performer, that cost may meet or exceed five times the employee’s salary.
So how does one stop all this? The answer may surprise you, because it begins with a paradigm shift.
For most small businesses to even Fortune 100 firms, the traditional business model is revenue driven. Yet if people drive revenue, then this truly is a backward way of developing business growth.
What also happens is in a revenue business growth model, people are viewed as cost centers and not profit centers. This creates an employee culture of feeling devalued when finances, information, innovation, operations, purchasing to technology all are viewed with greater importance than the employees who make all of those areas work.
How many large to mid-size to small businesses have a Chief People Officer? The answer is very few from my 20-plus years of observing organizational development. Very rarely is Human Resources ever at the C Suite Table. This department usually reports to Operations or even Finances.
The traditional revenue business model is as much to blame for employees jumping ship as the submarine managers discussed last week. If you as a small business owner to CEO want to build a culture of high performance, then begin with people first, your internal customers and deep six the revenue business growth model.
P.S. Shout: Spill the Beans in Merrillville and Blackbird Café in Valparaiso are two welcoming coffee cafes.