For years, employers have struggled with whether to have an active engagement procedure in place, or just replace employees who aren’t buying into the company philosophy.
Should employees naturally find a level of buy in to company philosophies, or should company leadership actively seek out a method in which to gain a belief in ownership for their employees?
Does your company have a problem? What steps should you take to better engage your workforce? These are the things that we are going to look at it.
Identify What Type of Employees You Have
Three main types of employees walk around the halls of your office:
Employees who find a connection to their company’s ideology and help to drive the organization forward.
Employees who are just putting in the necessary hours without any energy or passion for the position they hold. These are the employees who, somewhere along the way, became Disengaged for one reason or another, be it lack of career growth or promotion, a perception of salary inequity, job dislike, or distrust of a direct manager or senior management.
These employees can be extremely damaging to a company. These workers are unhappy, and they aren’t overly secretive about it. They display it in words, actions, and attitude, and actively undermine the performance of others.
Although we all hope to believe that the majority of our employees fall in the first category, most fall in the bottom two. Statistics show that only 13% of all employees worldwide are fully engaged, and just 33% in the United States are fully engaged.
Replacing Current Staff
So, what do you do with employees that fall in the bottom two categories? Fire and replace? Not so fast my friend, the cost of replacing staff in the bottom two categories can be a strong reminder of the need to take a different approach in today’s market. The Cost of Turnover will vary by wage and role, but the costs are often significant no matter the position they hold. For example, a Center for American Progress study found average costs to replace an employee are:
16 percent of annual salary for high-turnover, low-paying jobs (earning under $30,000 a year). For example, the cost to replace a $10/hour retail employee would be $3,328.
20 percent of annual salary for midrange positions (earning $30,000 to $50,000 a year). For example, the cost to replace a $40k manager would be $8,000.
Up to 213 percent of annual salary for highly educated executive positions. For example, the cost to replace a $100k CEO is $213,000.
As you can see, the cost of replacing those employees who fall in the disengaged or actively disengaged categories can bleed a company of much needed financial resources, at the same time draining the expertise and knowledge they hold in their job function.