Updated: Sep 27, 2020
What to do to keep your talent from working for your competition
All companies devote a lot of time and effort selecting the people who will be part of them. They want an efficient, harmonious and profitable team. Bosses dream with teams who don’t create problems and whose gear is as productive as possible. Sometimes you can get that dream team, but it doesn’t lasts. Reality shows that people come and go, forcing the company to start over again. Recruiting is an onerous process that drains energy, money and time. It’s not just a big corporation’s problem, but medium and little sized companies too.
2. HOW MUCH DOES IT COSTS?
When we show the cost of losing a talented employee to companies (specially SME’s) they startle.
Let’s make a little cost’s analysis:
Cost 1. Lower productivity. When somebody go, other people will take charge of her activities and it will impact directly on their own productivity: Lower quality, not fulfilled deadlines, closed projects… you name it.
Cost 2. Lost knowledge, skills and contacts that she takes with
Cost 3. Customers she takes with
Cost 4. Recruitment of a new employee. You contract a company to do it or your company do. Either way it costs money. You can count here a 30% of her annual salary.
Cost 5. Learning costs. A new employee needs between 6 months and 2 years to produce like the last one (If you are lucky and he/she is so productive)
The total costs are, according to Haygroup, between 6 and 18 months of the employee income depending on job, responsibility, technical other managerial skills and culture. Let’s put it simple: for a person whose income is 100.000$ per year you can count with a cost of 100.000$ if she leaves.
Psychological costs (For the team):