Despite thousands of dollars invested into employee engagement programs, companies do not see the right results because nothing really gets done with the results.
How could we take an organisation-wide step to build more accountability for people management and employee engagement?
Among others, attrition is one of the key outcomes of low levels of employee engagement. And, it's a costly affair. Apart from the talent loss, there are costs related to recruiting replacements, training the newcomers and the loss of training / recruitment dollars for the outgoing person. Various estimates have put the cost of attrition to be about 3-6 times of the employee's monthly salary. At times, it can be up to 1 year of employee's salary!
Traditionally, these costs are born from the budgets of the Human Resources departments.
I propose that these costs be shared between the HR and the individual managers. The cost of attrition must be established and a portion of it must be born by the managers, so that they understand the importance of managing people well, rather than treating them as mere resources.
Another improvisation to the plan could possibly be that the performance of the leaving employee should be factored in. So, when an employee with a high performance rating leaves, there is a slightly greater penalty to to the manager, as compared to a situation when a low-performing employee leaves.
- Greater ownership of people management among line managers.
- Change in mindset that people are "resources". Brings about a "real" need to manage people really well.
- Better people management will contribute to better employee engagement.
- Engaged employees will help create engaged customers and thus, contribute to better business outcomes.
- Reduction in overall costs of attrition
- Engage the organisation in conversations about employee engagement and people management.
- Begin a consultative process (including senior leaders and middle management) to establish the cost of attrition and cost-sharing ratio
- Establish a comprehensive change management program to plan, communicate and execute change. The change process will include an educational component too for managers.
And of course, the various clients who I have worked with, who have shared their problems and ideated together with me on solutions.