Recently I wrote an article asking the question of what your company might look like if you offered unlimited vacation days. While this may be a great option for some companies, we do recognize that it may not work for everyone. Knowing that 74% of vacation of vacation days go unused, what is right amount of days to offer to your employees? The other key question that should be posed is: how do you compare with other companies?
As the economy starts to pick up, many employers are competing for the best talent to attract and retain. Retention is the new emerging risk. In looking back over the past decade, many employers and their workers have had to do more with less even as the costs of traditional benefits have continued to increase, while the value of those benefits has gone down. The result has been that for most employees - given the past state of the economy - really didn't have an option but to accept this and work harder and longer. However, this is changing, and you may be at risk for a talent exit.
How would you define your most valuable employees or MVE? I use the metric of someone that makes the company a lot of money or makes the executives job easier. Using that definition, can you name your top 5 most valuable employees?
Once you’ve identified these employees, how are you protecting them? We take each of our clients through a patented process where we identify, quantify, and prioritize potential business risks before they occur - every year. This question of identifying your MVEs is one of the key questions I have asked over 850 CEOs, and less than 12% have a formalized plan or can even identify who their MVEs are. If your answer is, “we pay our employees well" or "we have great benefits,” then you have an issue.
How difficult is it for your biggest competitor to pay them more or provide better benefits? Not very difficult at all! As a matter of fact, most of your competitors would be willing to do this if they felt they could recruit your top talent. The reality is most employees will leave their place of employment for the same reasons they are staying there. What I mean is this - if it’s only a matter of money, then an employee will leave if they are simply offered more money. The same applies to health insurance and/or any other insurance-based employee benefits – if that’s the reason employees are working for you, someone will eventually come along and offer something better which will result in that employee leaving.
What if you learned why your employees worked for you, and expanded those areas they liked and reduced the things they didn't like? Moreover, what if you were able to identify those areas that you were not performing at the level of what an employee would like and were able to improve in those areas? Now you are creating a culture and that is more difficult to reproduce. Most of these solutions can be solved without purchasing any specific products and help provide an increase in employee productivity and satisfaction.
Call today to find out how you can we can help change the culture and protect you from a talent loss.