Tag Archives: team building

How much will it cost when your key people leave?

NetworkingHow likely are you to lose your key employees?

According to Gallup, only one-third of U.S. employees are engaged in their work and workplace. And only about one in five say their performance is managed in a way that motivates them to do outstanding work. What’s worse, 51% of employees are actively looking for new jobs.  The answer is, you are very likely to lose an employee very soon.

How much will it cost when your key people leave?

What does it cost to replace an employee?  The range is large, but it is expensive at any level.  Studies show it can cost 20% of a low-to-mid-range position and more than 200% of a high-level or executive position.  Let’s look at the numbers.  The cost to replace a mid-range administrative manager being paid $40k would be about $8k.  But the cost of a highly educated contributor, director, or executive who’s paid over $200k would be over $400k.

What goes into calculating turnover costs?

  • Hiring (advertising, interviewing, screening, hiring)
  • Onboarding (training and management time)
  • Lost productivity (months, years to match a high performer’s level of performance)
  • Low team engagement (other employees are affected when someone leaves)
  • Customer service and errors (new people don’t know what they’re doing and make mistakes)

The costs may be much greater in your company, especially if a key person leaves at a critical time.  Missing a release deadline could cost the company funding or market share.  Lost knowledge could cause a faulty product to be released.

How will you keep your best people?

The top way to keep employees today is to engage them.  This means allowing them to do meaningful work that helps them grow.  When people are doing something that matters and are growing in the process, they are likely to stay.

Sixty percent of employees say the ability to do what they do best in a role is “very important” to them.  The problem is that people often don’t know what they do best, and it’s even harder for their employers to know.  The solution is to assess what people’s natural talents are and let them do work where they apply them.

A fun way to assess people’s natural talents is in a team-building session where people self-assess and share their talents with their team members.  People get excited about their discoveries and they learn how to better engage each other in projects.

If you are leading a team and you want to keep your key players, you may want to give our Strengthen Your Team Team-Building Activity a try.  It costs only a small fraction of what it costs to lose someone, and it will pay back even more in terms of the increased productivity and engagement of your team.  You will also have fun discovering how your own natural talents come into play.

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What Does a Bad Hire Cost You? 3 Tips for Hiring Good People

working-with-laptopWhat does a bad hire cost you?

Research shows a bad hire can cost your company at least 30% of their salary, but there’s more than just money at stake.  Your personal success is on the line too.

Ask yourself the following questions:

  • Are you working too many hours because you’re covering for an ineffective employee?
  • Is a single employee dragging your whole team down?
  • Are you getting pressure from above to deliver more than your team can accomplish?
  • Are other teams performing better than yours?
  • Is your boss telling you to be tougher on your employees?

If you’ve answered “yes” to any of these questions, you should consider what action to take.  Whether you choose to give the person a chance or let them go depends on a number of factors.  However, you can learn how to avoid this situation in the future by following a better hiring process.

No one is perfect, so the key is to hire someone who has or is able to develop the necessary skills and characteristics to succeed at the job.  Determining that requires a systematic, objective process.

It’s worth investing time and money into a solid assessment of job candidates.  It pays for itself when you have a successful employee and it avoids much greater costs when you don’t.  Plus, it helps protect you against unfair hiring practices that could bring about even costlier litigation.

3 Tips for Hiring Good People

1.      Create a detailed job description

A good assessment process starts with a detailed job description that includes specific behaviors and characteristics necessary to be successful at the job.  For example, an engineering job description might include: “operates computer-assisted engineering or design software or equipment.”  A logistics manager’s job description might include: “maintains metrics, reports, process documentation, customer service logs, and training or safety records.”

2.      Choose predictive assessment methods

Whether you conduct interviews, tests, or job trials, it’s important to do them in a systematic and objective way.  For example, structured interviews with job-relevant questions are better predictors of performance than casual interviews that differ between candidates.  A test of emotional intelligence might be a good fit for candidates for a team leader position.  With tests, however, it’s important to have a qualified person read and interpret the results.

3.      Train people how to assess candidates

Invest in assessment training for those involved in the hiring process.  Teach employees and managers how to interview and how to rate candidates.  Help them understand what questions are good and which ones are either ineffective or illegal.  Walk through the job description with them so they know what they’re looking for in a successful candidate and make sure they ask the same questions to all candidates.

Alternatively…

If your team is strapped for time or just not interested in learning this skill, hire an outside firm to do the assessment for you.  It doesn’t cost that much and it can save you a bundle in the long run.

Rady Exec Ed Program Recap: Managing Distributed Teams using VirBELA Virtual World

By Joanie Connell

On May 21, we taught the first Rady School Center for Executive Education (CED) course completely in the VirBELA virtual world. The course was aptly titled “Managing High Performance Distributed Teams” and we had participants as far away as England in VirBELA with us. Guess what happened?

Rady Exec Ed Program Recap: Managing Distributed Teams using VirBELA Virtual World