Matthew Gates http://notetoservices.com 2m 582
The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
Every company needs employees to run a business. Many people are looking to become employees of a company in order to make money. Those people who become employees of a company often become loyal to the company, especially if the company offers good pay, benefits, and incentive. By providing innovation and incentive to employees who bring in profit for the company, the company also shows its loyalty to its employees and the relationship proves to be mutual.
There are plenty of other companies out there who lack complete loyalty to their employees, pay them below average, and offer no benefits or incentive to really feel any loyalty to the company. While there are plenty of companies that feel that by providing a job and a paycheck is enough to show loyalty and believes employees should be grateful for having such amenities, most employees feel this is not enough and often want to know the company genuinely cares about the company. Anyone can pay anyone to do anything, making a person feel used over time, especially if the compensation does not keep up with the cost of living, but a company that actually shows they care about their employees will establish the trust and loyalty of their workers.
There are companies who would prefer to replace all of their employees in a heartbeat, even with years of loyalty and service, in order to hire new employees at a far cheaper pay rate. It may keep a few of the old employees on to train the new employees for a while, before eventually lay off all the original employees. While it may work for some companies who continue to repeat this process every decade or two, it is bad practice and the sense of loyalty to the company and comfortable atmosphere is gone. If employees do not feel comfortable, they are not as productive as they could be, especially if they feel their worth to the company is undervalued.
Companies who did this may feel as if they are saving a lot of money by hiring employees at a far cheaper rate, but eventually they costs end up equaling out or being far more than if they had kept the original employees. Companies that have employees who feel as if they are a big family are far more productive and work together better than employees who feel like employees. Companies should consider the ROI on current Employees vs. hiring new Employees and realize that trust, loyalty, and a family atmosphere which leads to productive employees who know the company are worth the investment.
This infographic explains, in numbers, the return on Employee Investment (ROEI).
Click to open / Right-click for save options
Return on Employee Investment Explained
Learn more at ROEI.com
Employees are the most important component in the quest to improve your business results. The investments you make in your workforce should yield a healthy return and positively affect the bottom line.
Companies That Take a Strategic Approach to Talent Management See
40 percent lower turnover
2X the revenue per employee
38 percent higher engagement
The Cost of Replacing One Employee
30 – 400 percent of their annual salary
The Cost of Replacing One Employee Making $17/hr is:
Every $1 invested in Employees yields $10 in profit
Increase Your ROEI for about the same price you pay for coffee service
Learning + Performance Management = $.35 daily per employee
Coffee = $.35 daily per employee
Matthew Gates is a freelance web designer and currently runs Confessions of the Professions.