Staff Turnover Hurts More Than You Think
A friend was telling a group of us last weekend that he found out after starting work for a national company that the head office has an annual staff turnover of 56% and that in the few short months he has been at his office, the 'leaders' from Head Office have been more involved locally and have instigated the same kind of turnover statistics in short order. This turnover is having a devastating effect on the business, staff morale and the outcomes that they can achieve. My friend is reasonably sure his time may soon be up and I think he'll be happy for it once it comes.
I was also told recently by a senior manager at a global retail focused business with over 14,000 staff around the world that their staff turnover was hovering around 30% annually and that they had calculated the financial loss of any one of their frontline personnel at $30,000 per person. Do the numbers - that's a staggering annual loss.
Many managers make light of staff turnover - "that's just the way it is", "it's always been that way", "people attracted to our industry are drifters by nature", "it's gen x, y, alpha and omega". The list of excuses is endless. Here's a brief exercise to calculate how much staff turnover is costing you or your business: on the bottom line.
- Recruitment Costs ________ (advertising, recruitment agent, interviewing and reviewing times, etc.)
- Induction Costs ________
- Time to productivity as a % of salary ________ (e.g. 3 months to become fully productive = .25 x $80,000 per annum = $20,000)
- Time to productivity as a % of revenue _______ (e.g. .25 x $400,000 sales = $100,000)
- Lost knowledge ________
- Training - direct and indirect costs ________
- Loss in team productivity ________ (% of team salary, plus loss of sales/outcomes)
- Loss of reputation ________
- Manager's time ________
- Exit interviews and/or arrangements ________
- Severance benefits or payouts ________
- (Minus % salary of time position vacant) ________
TOTAL $_____________ PLUS, other intangibles, including
- Lost contacts/network
- Headaches for other team members and managers
- Time wasted in the entire process
- Lower morale
- Uncertainty in business
- Loss of direction
- Personal distress
- (minus the pain for disruptive employees)
- And more ...
The Australian Federal Government's Equal Opportunities Agency lists a few studies relating turnover costs at their website: http://www.eowa.gov.au/Australian_Women_In_Leadership_Census/About_Equal_Opportunity/Why_EO_Makes_Business_Sense/Five_Ways_EO_Boosts_Profitability/Attract_and_Retain_the_Best_Talent.asp (The site also has its own turnover calculator.)
One of the studies the EOWA cites is from a national Australian legal firm who estimated that losing a lawyer with 3-5 years' experience cost a minimum of $75,000 each time! The American Bar Association estimates the loss at $100,000 per lawyer - probably a more realistic estimate. Consider as well that the client often has to pay by spending moretime and money explaining things to new or alternate staff, getting projects going, clearing up errors in production or services and more.
Staff turnover is a significant and legitimate business expense and should be treated as such. Therefore, good employers invest in developing systems, culture, leadership and purpose-driven organisation that works to build and develop the best people - and keep them.
Add a comment and tell me: How much and in what ways does staff turnover affect you?
2012 Workshops Schedule
Currently scheduled workshops.
Authentic Speaking Workshops
We are running three courses of Authentic Speaking Public Speaking Workshops this year:
1. Authentic Speaking Foundations Workshop. This is our 2-Day Foundations workshop - appropriate for those looking to set a great foundation and become a more confident speaker. It is for people from small business owners or general staff through to executives who need to work on their confidence and get started in speaking. Remaining Dates: May 17-18, Aug 13-14, Nov 5-6 2012
2. Authentic Speaking Refresher Workshop - Bringing Your Stories to Life. By popular request (isn't that fun to say?), I am offering a 1-day Refresher course for Authentic Speaking graduates. The focus of this workshop is on developing a store of powerful stories to convey different values and to use for different purposes. I will take you through a process to develop them and to bring them to life and we will add further dynamism to your speech and delivery. I will also be surveying participants regarding their current speaking needs, to ensure that this Workshop continues to boost your speaking to another level. Date: 28 May 2012
3. Authentic Speaking Executive Leaders Workshop. A 2-Day Workshop for Executives and Senior Leaders who are already confident and have regular exposure as speakers, but need to focus on how to present their own personal and organisational brand strongly and powerfully. This 2-Day Workshop will only be held once in 2012 and will be structured to allow peers to discuss communication needs at senior leadership levels. Dates: July 30-31 2012
Visit www.authenticspeaking.com.au for workshop details or email email@example.com for enrolment forms.
Gifted Leadership Experience
We have been working on this 2.5 day Leadership Experience for quite some time: Designed to bring together dynamic senior leaders who want to transform their leadership and results, this Leadership Experience will be part retreat, part workshop, part milestone experience. We have been in discussions with US Management Schools to use cutting edge resources in Positive Psychology and are also bringing to bear our own research in professional giftedness, plus our experience in leadership and personal development built up over three different continents.
We already have some people who have expressed their desire to participate and have expressed their desire for certain objectives and content that they would like to see incorporated. I will be putting out a call for Expressions of Interest in the coming weeks.
We are planning on holding this at a Perth-based resort in mid 2012 and will be including recreation and a sumptuous celebratory three-course lunch on the final day.
Socratic Dialogues - Using Questioning to Create Change
Mary is running this 2-day workshop, first created for BHP Billiton Iron Ore's Rapid Growth Implementation Team to help them use this specialised skill - using Socratic Dialogues - to lead others to change their mindsets and results. A tremendous workshop (especially for technical specialists), it divorces you from didactic and unproductive forms of communication and helps you to lead people to inevitable conclusions that create change. She's a Master Teacher and it's incredibly enjoyable and productive. Dates: June 4-5 2012
Activating Your Gifts At Work - Becoming a High Performer
Based on my original research into professional giftedness, this 2-Day workshop helps you to identify your pre-eminent gifts and talents and how to develop them, hone them and apply them in your own work. We examine how to craft your job for better results and how to seek out and develop the gifts and talents in those around you so that you can develop high performance teams. This is an experiential and experimental workshop, so I will need keen and enthusiastic participants ready to contribute to this experience. Dates: June 18-19 2012
People Performance for Profit Presentation - Stirling Business Association March 14
I will be presenting on "People Performance for Profit™: 7 Steps to Outstanding Performance - The case for investing in your people: How to systematically develop extraordinary performance, productivity and profit through your people." on March 14. This will be a luncheon occasion at the Saint George Hotel.
Bring a guest! Details and bookings are available at the SBA site at http://www.stirlingbusiness.asn.au/events.htm?id=91
Robyn Moore - Power of the Word, March 12
My friends at BH Promotions and ICMI have noted that some of my newsletter readers might want to attend a presentation at the Octagon Theatre, UWA on March 12th by Robyn Moore on "The Power of the Word". Robyn is a nationally and internationally recognised voice-over artist, speaker and personality. Among other things, she is the voice of Blinky Bill.
She is coming to Perth with what Brad Hopes Promotions is saying will be a delightful presentation on taking back the energy in your life.
If you would like to attend, tickets are available through http://www.bhpromotions.com.au/products-page/tickets/robyn-more-the-power-of-the-word/. 'Add to Cart' at the bottom of the page. Be careful though, the page is blue and a bit tough to read.
If you note 'Lamplighter' as the referral source at the bottom of the registration form, then we will see if we can get those attending a group discount on their entry.
Authentic Speaking® Foundations - May 17-18 2012 Workshop
Our next Authentic Speaking® Foundations Workshop is on May 17-18 2012. As noted above, this workshop focuses on the Foundations of Public Speaking and Presenting. Don't Just Present - Connect!
Enrol by March 18 to receive an early bird discount.
Visit www.authenticspeaking.com.au for workshop details or download a registration form.
We watched a goshawk hovering in a field yesterday, intent on the ground below. With wings outstretched from its pure white body, it rode a strong easterly wind two and a half metres above the ground - riding in a perfect stationary predatory position. Once in a while it flapped its wings, or trimmed them to the wind in order to maintain its height and vantage point as it intently monitored the ground below.
We've seen that goshawk in the same spot before, so something tasty is obviously in that field. But with beak poised and eyes taking in everything below there was no doubt that it would soon be enjoying its prey in a different way.
You have to know what your target is, find a fruitful field, prepare yourself in the right position and have your equipment ready to take advantage of movement. But using your gifts to patiently wait certainly brings its reward.
All the best.
Thanks for your comments.