01/07/2024
THE REAL COST OF CULTURE & PEOPLE
Everyone will tell you an unhappy work force or team damages end results and bottom lines. So let's take a minute to unpack that, the shame of it is that many organisations in business and sport do not pay any attention to the area of culture and people, even those that hire HR Managers are often missing the mark in this area.
So first of all, studies have put the production loss figure of poor cultures at between 24 & 33%. Now it becomes crystal clear that there is a very real cost associated with not paying attention to the culture within your organisation. For me, I place the figure at around 30%, and in extreme cases where poor culture and leadership are clearly evident I believe that figure can get up to around the 40% mark. Can you, or any organisation really afford not to pay attention to culture?
Let's now move across to the cost of hiring people, training them and getting to the point where they are a productive member of your team. Did you know that the cost of this sits at between 50% and 200% of that persons first year salary, depending on the industry. So in real terms, if you hire a staff member on a 60k salary, it is going to cost you at least 30k to get that staff member to a productive level within you organisation, and depending on the industry it could cost you 120k. This is a very significant cost of your organisation, and something that deserves a lot of attention and effort in order to avoid an expensive mistake. Now heres the alarming statistic, 40% of people who have been with an organisation for less that 6 months plan to leave in the next year. Alarming isn't it, and very expensive. So how are you going to swing this date, and these statistics in your favour? CULTURE!
Imagine having a culture in your organisation that cuts down production loss to a minimal, or even zero percentage. Imagine having an organisation that hires people, and they choose to stay long term. Now imagine what sort of difference you would see in your bottom line. This is clearly visible, and measurable within your organisation.
Can you really afford not to have effort put in to this area? I can help you do that.
"Right People, Right Place, Right Time"
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