By Sid Chadwick, Chadwick Consulting, Inc.
“Eighty percent of success is just showing up” ……….Woody Allen
The more I reflect and observe, the more I realize that quote from Woody Allen --- is often true --- on many levels.
At a recent Plant Manager’s Peer Group Meeting, we were listening to the challenges…and costs…. of replacing personnel --- who were experienced, and valuable. (Discussion made it clear, this is a steadily growing problem.)
Generally accepted “Rule of Thumb”: “It costs about what you pay an employee each year --- to replace them.”
After a few moments, I asked, “How many of you provide your employees a “Benefits Statement” --- preferably quarterly --- but at least once a year --- of what the company pays for each employee --- that employees do not see in their take-home paycheck?”
Only one of the eight attendees could respond positively.
Here’s a representative list of what benefits we collectively developed are possible to communicate --- quarterly:
- Social Security
- Contributions to Health Insurance (Personal and Family)
- Dental, hearing, and eye-sight Insurance
- Unemployment Insurance
- Disability Insurance
- Life Insurance
- Catastrophic Health Insurance
- Education --- Tuition and Books Support
- Work Clothes/Uniforms
- Profit Sharing
- Education & Training
- Upgrades to workplace Software, and Equipment
- Paid Vacation
- Paid Sick Days
- Personal Days
The impact of knowing what your company pays --- on your behalf --- every quarter --- is well worth your time to communicate --- to each employee.
Hidden, Underlying Benefit: After you’ve developed a system for communicating --- in writing --- this profound message to each employee, start asking your customers if they could use such a communication vehicle to reduce employee attrition? (Such a program could develop into quarterly projects, and a specialization for your company.)
You already know the answer.
Any improvement in cutting employee attrition --- is probably worth the effort. Experienced employees represent critical capital --- to every business, to every organization.
Do your employees know, regularly, what your company pays on their behalf, that they don’t see in their paychecks?
Would they (and you) be surprised what that adds up to, monthly? Quarterly?
“He who does not risk will never drink champagne” ……..Russian Proverb