It Costs a Lot to Lose an Employee
January 29, 2018
When a company loses an employee, they should do some serious soul searching as to why that person left. Why, you may be asking? Because, according to the Society for Human Resource Management, they have estimated that every time a business has to replace a salaried employee, it costs the company, on average, 6 to 9 months' salary. For a manager making $40,000 a year, that's $20,000 to $30,000 in recruiting and training expenses; that is a lot of money.
I recently had the opportunity to work for F.A. Bartlett Tree Company. This was the third time I have spoken for them, so I have come to understand what makes them so successful. The average life expectancy of a Fortune 500 company or its equivalent is 40 years; Bartlett has been in business for 110 years, so they are approaching three times industry averages for corporate life expectancy.
With over 1,500 employees, Bartlett understands that a high employee turnover ratio can be very costly to any company so, they do everything they can to insure the continued employment of the people they have working for them; they have over 23 people who have been with the company for more than 50 years. Their objective is to maintain a work environment that will not only enhance their company but their people as well. Their secret formula for success is making sure their employees are treated right. During the last recession they grew by more than 10%. I’d say treating employees right is working for them.
According to some industry experts, 72% of ALL U.S. workers are unlikely to invest ANY discretionary effort in company goals or outcomes. How can you correct that problem? Well, take a lesson from the J.M. Smuckers Company, who from 2004 to 2017, grew from $600 million to $7.39 billion. They also grew profits by 800%. They believe the way you keep great employees is to:
- always say thank you for a job well done
- listen with your full attention
- look for “the good” in others
- have a sense of humor
- provide a set of guiding principles.
The Plant Supervisor for their Smuckers Orville Plant stated: “I’ve been thanked more in the one year I’ve worked here than in the 9 years I spent in my last job.” Just another example of a great company who knows how to treat their employees.
When it comes to treating employees right … recognition and creating camaraderie should be at the top of your list if you intend to keep highly motivated and productive employees. I am sure you have heard the statement, “People don’t leave companies, they leave bosses.” Unfortunately, that is true. So, when an employee leaves, you need to be asking yourself, what has been done (or not done) to cause them to leave?
"Your only true security in life
is your ability to perform."