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6 - Adding Value for People

Published online by Cambridge University Press:  05 December 2013

N. I. Fisher
Affiliation:
ValueMetrics, Australia
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Summary

We advertised for staff and people came along.

Anita Roddick

I believe the real difference between success and failure in a corporation can very often be traced to the question of how well the organization brings out the great energies and talents of its people.

Thomas J. Watson, Jr.

PREAMBLE: WHY BOTHER?

How much of your budget is spent on remunerating your people: salary, bonuses, provision for retirement etc.? 10 million dollars? 100 million dollars? More?

Would you like to save yourself at least 0.5 percent to 1 percent of this annually? There is a simple solution: cut your unplanned staff turnover by 1 percent.

It is very costly to lose someone you hadn’t wanted to lose. You lose money through:

  • recruitment processes

  • downtime pending appointment

  • cost of load sharing

  • cost of new hire

  • time to become proficient.

For lower-level staff, staff loss is generally reckoned to cost of the order of 50 percent of their total annual package, rising to 100 percent or more for senior people. And we haven’t even started to add in the cost of the knowledge and know-how that walked out the door.

Type
Chapter
Information
Analytics for Leaders
A Performance Measurement System for Business Success
, pp. 61 - 76
Publisher: Cambridge University Press
Print publication year: 2013

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