Can your Business Really Afford to Lose an Employee?

Can your Business Really Afford to Lose an Employee?

It’s no secret that most business owners try to cut costs as they are able, and who can blame them? We certainly don’t! With the economy seeming unstable from one year to the next, businesses need to find ways to stay profitable if they ever expect to make it past the first year or two. One of the biggest factors in cost to any business is in employee training. Not only do you have to take into account the loss of productivity during the training session, but you also need to factor in the recruitment costs as well. Not to mention the fact that you may have lost a previous employee, and are seeing their job fall behind, which now explains your need for training a replacement.

Considering All of the Costs

One employee leaves your business and another moves in. This sounds simple enough, right? The fact is, we have spoken with many business owners who admit this can end up being one of the largest hassles and biggest expenses they will have to deal with. Putting out feelers for recruitment, taking time to weed through potential candidates, ensuring they have the right knowledge for the position, training them in your specific ways, and more. This all leads to expenses you may not have originally planned for. Many times there are also the HR things attached to this transition, and then there is the paying of benefits, or unemployment. Many factors are activated when a transition happens within your organization.

Training of an employee is normally done by a manager or team leader. During this time, the manager or team leader may fall behind on their normal tasks, which, in turn reduces overall productivity and business profits. Did you know that 40% of employees will leave their job within a year if they receive poor job training? Some business owners may decide to invest heavily in the new employee, giving them thorough training and hoping they stay with the company long-term to make the cost worthwhile. Did you know the average business owner values just 1 hour in their work day to be $500.00, so how much are you investing in this new hire, what is the true cost? Some may let the new employee learn through trial and error, sometimes by the seat of their pants, making it a hit or miss type of experience. While the latter is the cheaper method, it may not always be the best.

With the Phoenix Business Cycle, we know this can be one of the biggest reasons you are still struggling and trying to cope with too much on your plate. It’s hard to reignite the fire in your business and move into new endeavors, when you are struggling with recruitment hassles or the new-hire training process. That’s where we excel. By becoming your partner and basically giving you access to the entire pool of our highly trained employees, you have the time to focus on the core of your business. There’s no recruitment, no sorting through applications, and no frustration. Are you ready to watch your business soar? We think you are!