Team Building Activities: HOW MUCH DOES IT COST TO REPLACE AN EMPLOYEE?
As a manager or business owner, what is the first thing you think about when an employee resigns? Finding a replacement within a short window of time, having so much to do already and then having to factor a recruitment process in to your already demanding workload. Of course you then have to wait six to 12 months before the new employee is fully up to speed and competent and capable in the job role. Does this sound familiar? Wish you had done something differently that would have provided a more cohesive team through various Team Building Activities?
What about the costs associated with losing a team member? There are actually quite a lot with some being less obvious than others. The direct costs of employee turnover include the recruitment process, which, when broken down involves reviewing the job role requirements, writing a revised position description and advertisement, shortlisting applications, interviewing, carrying out any selections tests or job previews, taking up references, producing all the paperwork associated with the new employee and inducting the new employee into the company and the job role, including all the training required to perform the role. Equipment and tools together with uniforms may also need to be provided. Overtime costs may also be incurred due to the remaining team members having to cover the extra workload.
Do you want help to do things differently? Think Team Building Melbourne!
Recent studies by the Centre of American Progress found that it typically costs a business around 20% of an employee’s salary to replace them with the cost differing significantly depending on the job role. Research has found that the higher up the organization a position is, the higher the costs are to replace them, which does make sense. If, as part of the recruitment process, a Recruitment Agency is engaged, this will have a significant impact on costs. The bigger the salary the more expensive the recruitment costs will be.
What if companies invested those costs in Team Building Activities?
A lot of companies nowadays are realizing that team relationships are important to employee retention and are finding benefit in Corporate Team Building Activities. What if part of a company’s people strategy involved Corporate Team Building Activities on a quarterly basis that gets teams out of the office but working together on a particular value such as trust, communication, conflict resolution or leadership?
What if these Team Building Activities were actually working on a deeper level to increase employee retention through building deeper professional relationships that build longer-lasting and more effective teams?
What if these Team Building Activities enabled teams to build a level of trust where honesty and transparency were second nature and no one ever got offended? Anything is possible with a little help from your friends here at Urban Quest who are well versed in providing Team Building Melbourne!