Finding and retaining talent is a matter of finding the right compensation structure. While good employees can’t be taken for granted, there are a number of financial constraints that can make this seem like an unsolvable puzzle. It can be helpful to speak to someone else about these matters if you’re having a difficult time reconciling the needs of your staff with the needs of your budget. It can be difficult to see the solution when you’re mired in the middle of discussions about money and benefits. An uncomfortable topic to many even under the best of circumstances, see why ignoring it will only make matters worse.
The Cost of Turnover
The direct cost to replace a mid-level employee will generally cost about 20% of that worker’s salary. This can be a major expense to swallow on its own for company owners. But it also means having to go through a training period to catch up to the company’s routines, policies and values, which can be mentally draining. And the real costs to the company over time are difficult to quantify. When a person has a chance to become established at a company, they raise expectations to a certain level. Assuming that you value the employee’s contribution and that others do too, changing those routines can have a significant impact on both moral and customer experience that can be felt for years to come. While some turnover is unavoidable, the higher the rate climbs, the less stable your company will be.