Team Building Activities Melbourne: INDIRECT COSTS OF REPLACING EMPLOYEES
You are in the middle of a lovely dream which pictures you working in a company where employees are happy and don’t leave. You work in a high performing team, which the Company has invested in with quarterly Team Building Activities, which have helped to build on the foundations that were already there. Then you woke up!
When an employee resigns we are generally like robots and just automatically go into recruitment mode to find a replacement, which, if rushed, can mean we just put a bottom on a seat and don’t actually recruit the right person for the role. We can be so fixated with filling a vacancy in a short space of time that we risk recruiting someone who doesn’t fully meet the criteria. Does this sound familiar? What if employees didn’t resign? What if there was a mechanism that encouraged employees to stay, which was built around strengthening relationships and Team Building Activities?
Recently we talked about the direct costs of employee turnover but what about the indirect costs? Most companies don’t give the indirect costs a second thought but after reading what they are, you just might. The indirect costs include reduced productivity levels from the team whilst there is a vacancy and also whilst training, which has an impact on income and profit margins. Don’t forget the team member who is carrying out the training as their productivity levels will also be impacted.
Consideration should also be given to the financial value of the time that is used to find and hire a replacement employee together with the negative impact on colleagues and customers when an employee leaves. Some of the negative impacts may include missed deadlines and interruptions to workflows, which not only cause stress to all involved but have a knock-on effect to the wider team and ultimately, the company’s reputation.
Morale and culture are also likely to be affected and once so, can become a bit like a mini-epidemic with toxicity spreading throughout the workplace. If you were being provided with a solution to help you become an employer of choice, what would you do? Think Team Building Melbourne!
When an employee leaves their knowledge leaves with them. You cannot put a price on knowledge and experience but if an employee has been with the Company 10 years, it is 10 years’ worth of Company knowledge and experience walking out the door!
Are you a business owner or manager reading this and wishing you could turn back time and do things differently? Do you want help to do things differently? Think Team Building Melbourne!
We are living in a knowledge economy where the primary profit lever is people and therefore companies must take seriously their responsibility to manage this asset. What this means is that companies need to start viewing employees as a resource rather than a cost. What do we do with resources? We invest in them. For help with innovative solutions to invest in your people, talk to your friends here at Urban Quest who are well versed in providing Team Building Activities Melbourne!