How much is staff turnover costing you?
These dots represent 100 randomly selected employees in Hong Kong. Gallup's 2021 'State of the Global Workplace Report' found the following:
The red dots represent 'disengaged' employees; those who are NOT putting time, passion or energy into their work, and are probably looking for another employer.
The green dots represent 'engaged' employees; those who are enthusiastic about their work, and are driving the business forwards with their passion and energy.
There are 93 'disengaged' dots, and only 7 'engaged' dots.
Only 7% of Hong Kong employees are engaged...that is the THIRD WORST EMPLOYEE ENGAGEMENT FIGURE ON THE PLANET!
What is this costing you?
Probably the easiest metric to illustrate employee engagement is staff turnover; if your staff aren't engaged, they generally leave!
The costs of replacing one staff member range from 20% of annual salary (for a 'low level' employee) to upwards of 200% (for a CEO equivalent). If you are turning over 30-40% of your staff each year, the costs to your business are enormous.
THERE IS GOOD NEWS!
It is surprisingly simple to increase employee engagement.
Research from the Carnegie institute shows that the biggest factor affecting employee engagement is the 'leadership of the employee's direct supervisor'. When was the last time you invested in high quality leadership training for your management team? Leadership training is a fraction of the cost of your cumulative staff turnover burden.
Remember...it is 'leadership' that makes the difference, not 'management'. No amount of MBA holders will make one iota of difference. What increases your employee engagement is empathetic leaders who prioritise building a workplace environment which will help their teams produce excellence.
Recruit leaders with a proven ability to engage and motivate teams, and seek out quality leadership training and coaching for ALL your team leaders.
Is there be an easier or more effective way to give your business a competitive edge?