During the past several months, we’ve discussed the need to be clear when interviewing people who are interested in your company and how to make sure that when a hiring decision is going to be made, everything is covered in the offer.  Now the new person is on board and has been performing at or above expectations.  Everyone is satisfied this employee is going to do just fine and you can move on to the next level of projects.  For most, the conversation would end here.

 

The price of investments
Let’s take a moment to consider what just transpired to acquire that new employee.  In most cases, a requisition was approved and a search conducted with the use of outside talent to find and present qualified people.  A considerable investment—notice we didn’t say cost—was made in the subsequent interviewing, hiring, and on-boarding process (often requiring relocation).  There is also the amount of productivity lost while the search process is engaged, as well as the productivity that is not fully realized while the new employee “gets up to speed.”  Depending upon the level of responsibility for this position, the investment can easily reach into the low to mid-six figures.  Several companies have put this figure anywhere from $200,000 to $300,000.

 

You go to great lengths to protect your assets.  You have comprehensive insurance policies that protect your physical assets and elaborate policies and programs to attend to the health and welfare of your employees.  You even have personnel on staff for the sole purpose of designing and implementing effective training and safety programs to further ensure that your employees have a safe and productive environment in which to work.  The cost of these programs and policies are even factored into the value of the products and services that you provide.

 

However, what are you doing to protect the emotional and intellectual assets you have, specifically those of your employees?  The majority of today’s workforce is not working for their original employer.  They have left previous employers in their search for a better career or opportunity.  If you were to ask yourself, “Why did I leave some of my previous employers?” somewhere in those answers would be, “Because of perceived indifference by my employer—they didn’t appreciate me.”

 

Remember that talent we mentioned that assisted you in your search?  Well, those recruiters are still out there.  Certainly not the people you have a relationship with, but others just like them who are always looking for high-level achievers, much like the one you just hired.

 

The price of un-appreciation
We’re already in the second half of the year, and as we’ve mentioned before, recognition and reward are keys to retaining staff.  A well-placed comment and recognition of a job well done is an excellent return on your time invested.  However, most employees still require more practical rewards.  Ask yourself what kind of programs you have in place that will help ensure the retention of your personnel.  If you have bonus/profit sharing programs, are they attainable and are they being paid out on a regular basis?  If not, it’s probably time to revisit and adjust these programs.

 

Nothing is more demoralizing than having a bonus/profit sharing program that rarely pays out or even worse, one that looks like it will and at the last minute something happens.  Do you have any kind of year-end recognition program, dinner, or ceremony?  Do you just meet with your staff and let them know how well they’re doing?  If you’re doing any of the above-mentioned things, are there ways you can improve them?  If you aren’t doing these things, why aren’t you?

 

Before you worry about how much it’s going to cost, remember the amount you’ve already invested and consider how important it is to protect that investment.  Also, don’t forget the talent out there that’s always looking for a high-level achiever who may not be feeling appreciated.

 

(As always, we value your input regarding the content for our newsletter. If you have any ideas or suggestions for future topics, be sure to contact us at jim@midwestheadhunters.com . We look forward to hearing from you.)