It’s an old concept. Can it be made new again?
By and large, the baby boomers, in their effort to rebuild and re-establish “normal” went to work for a company with intention of staying with the same corporate enterprise until retirement. What an idea! Many understood the hardships involved in the great depression, then the tragedy of World War II and had every intention of sustaining a constant. This constant was their work.
In the generations since, it has become almost expected that people will transition from position to position throughout their career. This has caused employers to expect employees to “move on” at some point and hence has impacted the culture within and ultimately the bottom line due to the cost of turnover.
Based on percentage of annual current salary, replacing employees costs:
• Entry level—30%-50%
• Mid-level—150%
• High-level, specialized—400%
Why?
• Recruitment
• Impact on existing staff
• Impact on client / customer base
The irony is if no one expects employees to stay for the long term, then they fail to plan for the strategies which would encourage employees to stay. Instead, it seems that firms are always hunting for replacement talent … kind of like the insanity wheel … doing the same thing over and over again, expecting a different result.
Consider changing the narrative. How would corporate culture alter if the attitude to hiring employees morphed from hiring for fixed roles, core team, expecting them to leave after a few years, to hiring employees in the expectation that they would choose to retire with the same company?
Let that sink in for a moment…how could we create an atmosphere which encouraged employees to consider coming to work for one company and staying until retirement? Building a culture which would allow them to contribute to the innovation of the firm, grow in leadership, transition with pride, and ultimately make a difference for them, the customers, and the corporation.
It’s a mind shift.
Imagine how workplace policies, benefit plans, wellness propositions would be reimagined to follow employees through their journey from entry to retirement, taking into account the multiple generations within the workforce. Further, envision the easy transfer of knowledge as part of the built-in succession planning that would take the place of always fishing for new talent. Instead, talent would be trained and fostered from within.
This “old” culture made new again would involve the goals and vision being adopted by all. A workplace buy-in to the “why” we serve our customer.
Changing the hiring attitude at the onset would allow leadership to focus where it needs to, on:
· Wealth creation
· Risk mitigation
· Protecting that wealth for profits
· Train staff for current needs
· Optimize the talent pool
· Engage employees in the long term plan
· Foster discretionary effort
Aligning the employee journey to the customer experience allows corporations to build benefit plans which enhance corporate culture and the overall compensation for an inclusive work-life balance for the long term strategy.
We’d be pleased to engage further on this topic. Give us a call.
Disclaimer: Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. The site is read by a world-wide audience and employment, taxation, legal vary accordingly. Please seek legal, accounting and human resources counsel from qualified professionals to make certain your legal/accounting/compliance interpretation and decisions are correct for your location. This information is for guidance, ideas, and assistance.
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Disclaimer: Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. The site is read by a world-wide audience and employment, taxation, legal vary accordingly. Please seek legal, accounting and human resources counsel from qualified professionals to make certain your legal/accounting/compliance interpretation and decisions are correct for your location. This information is for guidance, ideas, and assistance.
