On the Cost of Replacing Staff – and how you can avoid it!
What, really, is the cost of replacing staff in your business?
In many businesses, the major issues impacting the “health” of the business revolve around their people. The culture within a business is often a significant driver to results. Show me a good culture, and I will show you a great business. As the late, great Peter Drucker is often quoted: “Culture eats strategy for breakfast”
I reflected on this after reading one of Theo Winter’s recent posts. Theo is a terrific writer and thinker and I encourage you to regularly visit the DTS site.
Anyway, back to the issue – what is the cost of replacing staff? According to the study Theo had linked to, the cost can be up to 213% of their annual salary. This seems a tad high for mine, however I do believe the costs of replacing team members can be significant. We are often reminded that “people don’t leave jobs, they leave managers”. This may well be true (hence it hurts when I reflect on the staff who have been and gone through my business over the years!)
How do you minimise the chance of people leaving your business? We have found that by understanding how best to communicate with them and work with them will make a significant difference. We understand how important it is to work with people in a way that works for them.
How do you get to this level of knowledge?
Using a range of behavioural/communication tools with our customers for many years has delivered great success. The tools identify what styles of communication work for the people concerned and highlight how they are better able to be effective in what and how they communicate with each other. We’re doing some work with a really progressive business at the moment – the knowledge they have already gained is making a difference not only internally, but in how they are communicating with their customers. End result? Better results.
Think about what the impact would be if you knew how to be more effective in your communication with your team. What would be the impact of your team understanding what approaches work best with your different customers. Ultimately, what’s impact if, having this knowledge and investing in your team, they stayed and you didn’t have to replace them.
Through investing in your people and helping them be more effective internally and externally, you will be able to achieve far more, improve the culture markedly and enable your people to thrive. Whilst you are doing this, you’re also saving money as they are staying with your business!
I have previously posted about the success we have experienced in one of our more recent engagements. Imagine what the impact would be for you?
The best bit? The price for undertaking this work is very reasonable. Put it this way – for our most recent engagement, the total price for developing the whole team, doing their reports, debriefing them on their results and undertaking a group training and development session is WAY less than the cost of replacing just one person within that business.
To save your business money and develop the culture, why not get in touch and have a chat about what can be achieved in your operation?
I suppose the only thing you have to lose if you don’t is your staff.