The Time Has Come
Most people have heard of the 80/20 rule, which is used in many different ways. In business, 20% of your clients generate 80% of your profits. The reality might be closer to 20% of your clients generate 120% of your profits, and the rest cost you so much money to service them that they actually reduce your profits below 100%. Is the same concept true about employees?
I listened to a round table dialogue with Human Resource professionals discussing employees. The consensus seemed to be that there are 5-10% of the employee population that would be very difficult to replace, and there are 5-10% you could not wait to replace. The balance of the employees performed competently. The problem becomes, as workloads increase, the length of time to replace an existing employee's ROI to the company is stretching out from 6 months to over a year in some cases. Finding the right employee clearly is extraordinarily important, but keeping those you have is even more important.
Most employees spend 8 hours per day with us which leaves twice as much time away from work than on the job. In the work environment, an employer can provide a safe, vibrant surrounding and interesting work so that there is a desire to come to work. Perhaps what is less obvious is what we do to help our employees find happiness in their lives. A recent LinkedIn post suggested that happy employees were 10% more productive than the norm, and unhappy employees were 10% less productive than the norm. Work for most employees is a means to an end – the job does not define who they are as a person. So what if we could change the unhappy to very happy and push out a 20% increase in productivity!?
I have a niece and a nephew whose marriages did not last 3 years. That is 4 employees, all with different companies, whose work performances were dramatically affected. In one case, he was affected so much that he lost his job. Cancer happens to our extended families and people we know. Divorce happens to our immediate families, employees, and people we know. The time has come to be proactive and find ways to help build the relationships employees have.
Privacy is not an issue because healthy relationship planning becomes part of the wellness culture. Events, where employees and spouses are engaged, become the standard instead of the exception, and I am not talking about the Christmas party. Contact us for ideas, and remember this is a top down process. The greatest pick up in profitability is by increasing the productivity of the highest paid people. When employees see the changes, they want to be part of the program.