We are working with a new client who is interested in engaging their employees but didn’t realize the costs of not engaging their employees. We ran through some turnover information, comparing their current turnover rate to their industry’s average and discovered that their current rate is double the average. We estimated the costs associated with hiring and training these “extra” new employees ran into six digits of additional expense. That’s real money!
They asked if there were any other dollars to recapture on this issue. We discussed the concept of employee engagement being how people use their discretionary time at work. Do they shop for new shoes? Work on their fantasy league picks? Read the newspaper? Employees who are truly engaged tend to do productive work during this discretionary time. They may research trade journals, work on their PowerPoint skills, or network within the company – all activities that may look like loafing but are really forwarding the agenda of the company. These actions have salary and opportunity cost dollars attached, but are difficult to measure. Look around and create your own estimates for your team!
So what is all the fanfare around employee engagement? Why should you invest? Keeping your team productive and reducing turnover makes employee engagement equate to cost reduction! We can help. Give us a call at 917.930.0801 or email info@transglobaldevelopment.com to see how.