November 11, 2009
With the unemployment rate at 10.2%, talk of layoffs, and the closing of numerous businesses, it’s easy to see why many organizations are tightening their reins. However, it is important to maintain, or create, an atmosphere of security, flexibility, and contentment for employees…especially during an economic crisis. The temptation may be to put more emphasis on the bottom line than on those that create the bottom line. This could create more cost than you think. For example, turnover rates for 2008 (both voluntary and involuntary) averaged 18.7%. According to Watson Wyatt, total turnover costs including hard dollars and lost productivity are approximately 48% – 61% of salary. If a company has 60 employees with an average salary of $40,000, that could mean a cost of $215,424 to $273,768!
So how does an employer stay competitive without spending a lot of money? There are several things employers can do that cost little, but can go a long way in eye of an employee.
- Communicate.
Communication creates a sense of security for an employee. Not only communication about operations and product offerings, but culturally and structurally as well. If people feel that they have a good understanding of where the company is going and how it is going to get there, they are generally more connected and invested in it. Communication creates a purpose and meaning to come and work every day. - Be flexible.
Increasing flex-time or being more flexible with work schedules is a great way to add value in the eye of the employee. Being aware of the scheduling needs of employees and then trying to meet those needs creates a loyalty and appreciation to your company. - Recognition and Rewards.
Recognizing a job well done or rewarding employees that have just finished a project shows that they are appreciated for their efforts and it is noticed. Rewards could be anything from an extra vacation day or a gift card to a restaurant. They don’t have to cost a lot to have a significant impact.
These are just a few ways employers can keep their employees productive, content, and loyal through wage freezes or layoffs. Eventually the economy will turn and the last thing an employer needs to worry about when this happens is finding good employees. Remember, investing in your human capital doesn’t have to cost much, but it will pay huge dividends in the future.
About the Author: Jamie Harrell
Jamie is a Client Service Executive at Staff One, Inc., joining the team in early 2009. She holds an MBA from Oklahoma State University, with a Bachelor of Science degree in Business Management. Jamie has an extensive background in recruiting, working for a local Oklahoma recruiter prior to joining Staff One. She has experience in HR with additional experience in management, and she now delivers strategic HR solutions to approximately 60 client companies and more than 1,000 employees across the state of Oklahoma.