Investing in wellbeing could save your business £100,000

Business wellbeing leads to bottom line results.

Retention costs are significant

In a company of 250 people around 40 will leave each year*. A report commissioned by UNUM and undertaken by Oxford Economics in Feb 2014 estimates that the cost of replacing a member of staff to be £30,614 per employee. So in a company of just 250 people this could equate to a cost of £1.2m!

Developing a retention strategy

If you haven’t already got a retention strategy perhaps you need one. Here’s an approach to putting yours in place and improving business wellbeing.

1. Identify the size of the problem.

For your business what are the real costs of losing a member of staff in terms of the lost output and time it takes a new employee to get ‘up to speed’? What are the impacts on morale and productivity of other staff members who are placed under increasing pressure whilst recruiting? Finally what are the logistical costs of temporary workers, management and HR time and advertising for the new person?

2. Research.

Understanding the current situation in respect to engagement of your people. What are the things that are causing people to leave? What are the ‘rational’ and ‘emotional’ levers you need to pull to address engagement? Viewed through the lens of wellbeing outlined in the picture above there are clear links between the wellbeing of your people and their engagement.

3. Delivery.

Now it’s time to put in place your actions which might include revising or introducing new compensation and benefit plans, employee assistance programmes, wellbeing, team or executive coaching for senior leaders, teams and managers or even a full review of your employee brand offer.

4. Measure.

Finally measure the results. Increases to productivity, morale, employee engagement and obviously improved retention rates and lower recruitment costs. In respect to the results the Corporate Leadership Council devised a model which outlined that for 10% improvement in commitment, an employee’s probability of departure decreases by 9%**. In this scenario a company that improves commitment by 10% could hope to save £100,000 and potentially benefit from improvements in other areas outlined above.

Improveon helps you, your team and your brand to thrive with a focus on wellbeing.  Call or contact David now to find out how Improveon can help you improve retention and reduce costs.

Sources:
* Office for National Statistics: National Wellbeing, Measuring what matters
** Corporate Leadership Council, Driving Employee Performance and Retention Through Engagement, A Quantitative Analysis of the Effectiveness of Employee Engagement Strategies