Counting the cost of separation


But it is worth it, and not just because it can make a difference. It saves money in the longer term . No one knows just how much a departure can cost, but it varies from three to six months of an employee's annual salary. Suffice to say that if you can keep an employee for two years rather than one, you are saving money on replacement costs. More than that, you get a lot more than 100 per cent, as the employee by year two knows more about your business and is naturally more productive. Not surprising that smart companies are beginning to link retention time to the performance bonuses of managers.

But, although it is depressing, we must be sure that the message is unambiguous. Our employees don't trust us, period. To make absolutely certain that all the references to the disappearance of trust in the workplace were correct, I asked my friends Vanessa Stebbings and Barry Wade at the web portal HR Gateway (www.HRGateway.com) to run a survey, asking two questions about trust. The first was aimed at top management. The second at supervisors. While - in keeping with other evidence - the top management results were pretty predictable, those for supervisors were most alarming (I had always subscribed to the idea that people implicitly trusted their supervisor to do their best, even if they didn't really know what was going on).




The New Rules of Engagement(c) Life-Work Balance and Employee Commitment
Performance Tuning for Linux(R) Servers
ISBN: N/A
EAN: 2147483647
Year: 2006
Pages: 131

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