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Productivity:
Are your people engaged? Click here for more>> Do they share information? Do they help each other? Do they go the extra mile? Do they create experiences to your customers? Do they help you to bring good people in? Ratings: Unhappy employees do not make an effort beyond the job specification. If customers and guests give you bad ratings on-line, how much new orders will you go to competition?  |
How much does it cost you?
While it is relatively easy to notice cost such as compensation, benefits and payments for suppliers, do you have an estimate of the hidden costs in your organisation?
Please go through the check-list below and try to estimate your annual cost of: Do you know what motivates your employees? If you already pay better than industry average, and your employees are still unsatisfied, increasing the pay, may add to your cost but may not solve the problem. In many of the times it is not just about the pay. Recent survey that we have conducted on forums in LinkedIn had shown that a great place to work is one that gives you above fair compensation and benefits ability for growth and joy at work.
Communication cost: Worldwide, on average, employees lose between an hour to three a day to "fight" for internal resources needed to serve your customers, Unless goals are aligned and information is shared, big companies lose millions of dollars a year due to this gap in productivity.
We are flooded with hundreds of email a day, people expect us to answer at the speed of light and keep on sending reminders via their blackberries. Email is cold, often people get offended and the misunderstandings are compounded with emotional copies. Frustrations mounts, relationships are hurt, and unnecessary escalations to put off the fires take additional unnecessary time. We need to step back and use "Email for notification and face to face or phone or skype for communication". Rehiring cost: What is your employee turnover rate? If it is higher than industry standard then you might wish to check: 1. How much do we pay for recruiting a replacement? (head-hunting, advertisements) 2. How long does it take to find an eligible and suitable candidate? 3. How much pressure is mounting on the remaining employees to do the job until position is filled? 4. Will it hurt the product/service that you supply? 4.1 Will it affect the level of service? 4.2 Will it affect your "time to market"? If yes, what is the cost of a delay? 4.3 What is the risk and cost if some affected customers leave you? 5. Cost of training and retraining. 5.1 How much did you invest in training of the person who leaves prematurely? 5.2 Do you need to employ more trainers and how much do they cost? 6. Why did a person leave? Did it affect the morale? Will it impact other people decision to leave? 7. Have your industry noticed a pattern of high employee turnover and start talking negatively about why people leave you? Is there a cumulative damage to your image as an attractive employer? Will it make it more difficult for you to attract the best talent? Cost of bad communication: Some teams work well with each other. Many of the time there are conflicts with other departments. In the digital world, lack of personal touch 1. How much energy, unnecessary emails and time does your team waste a day in trying to get what they need from other departments to operate smoothly? Does it affect business indicators like customer satisfaction and employee's morale? 2. Do your teams share knowledge? 3. What part of frustration and stress is caused internally? |
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