How Much Is Employee Apprehension Costing You?

How Much Is Employee Apprehension Costing You?

Does your company confuse allegiance or loyalty with tenure?  If so, there may be a rutted rocky road ahead for your organizations future.  It is well documented in todays’ marketplace that tenured employees, who are replete with obsolescence, can bring productivity to a slow death.

If your employees are filled with apprehension and fear of upsetting the entrenched guys and gals in your organization, you DO have a serious problem within the organizational ranks.

If you management style or management team ranks tenure higher than performance, then sadly, I suggest you reevaluate not only your current management but your talent acquisition and management practices

I’ve said this before but it is well worth saying again, “The only thing worse than an employee who quits and leaves is an employee who quits and stays.”  Length of service and loyalty are not necessarily one in the same.

Take a moment right now and mentally review and picture the following and ask yourself, which team member would I prefer on my team?

A long term employee who resides in his/her self serving corner of the office….but when the real assessment is made, it is obvious he/she is an under performer? These people are exceptionally good at the smoke and mirror game and you should beware because they position themselves with a different mask every day. 

OR an employee who has been there not so long but consistently is willing to go the extra mile, contributes without being prodded, typically meets or exceeds goals and expectations and you always know where you stand with them? 

This subject is truly a value and performance issue and if you allow long term employees to reside in a clouded corporate bubble, then you are retaining them for all the wrong reasons.

TENURE AS WE HAVE KNOWN IT IS NOW ARCHIAC AT BEST:  This isn’t the 40’s or 50’s it is the 21^st Century.  Catch up with the real world.

TENURE THAT DOESN’T REPRESENT THE FUNDAMENTAL TALENT BASE DESTROYS THE BOTTOM LINE: Identifying, developing and rewarding employees is one of the best and safest ways to drive sales and profits.

TENURE THAT PROPAGATES USELESSNESS, OBSOLESCENCE AND MEDIOCRITCY ALSO INHIBITS CHANGE AND GROWTH:  It is critical to get out of your comfort zones and stop saying, “….but it is the way we have always done it.”

With all this said, allow me to reach for the real issue within this subject.  As an owner, executive, manager or team leader, it is critically important that your mindset is predisposed towards performance. 

The final choices become yours, so take ownership and grow or not:

A.    You can reward talent, dependability, initiative, innovation, loyalty, attitude, creativity, work ethic, contribution and leadership (because you take ownership of the concept and instill this in your employees) OR

B.    Maintain a workplace that believes in archaic concepts, mediocrity in performance and believes that because an employee has worked here a long time, we need to continue to “do it that way to keep peace in our business family.”

Now you need to ask yourself one final question…..Just How Much is Employee Apprehension Costing Me?

We Can Help!

Regards,

George F. Mancuso, CPC
President
Client Growth Consultants, Inc.

What is Management Acclimatization?

What is Management Acclimatization®?

For the sake of this discussion, I am using the term “manager” and defining it as any individual from a supervisory capacity, middle manager, executive manager to the “C” level.

SITUATION:  A new manager has been hired and the team is filled with trepidation.  What kind of manager will he/she be?  What will be the goals and expectations?  What changes will be made?  Will we lose our jobs?  Is he/she aware of our current challenges?  Will he/she be accessible and easy to talk with?  Why did he/she take the job?  What challenges does he/she see for themselves?  And as you can imagine the list of questions, fears or just general concerns could become lengthy.

PAIN RELIEF:  The process of Management Acclimatization® is a facilitation of the initial interaction of the new manager and the team.  Because we are an outside of the company facilitator, we can keep the process on track and gather details from both the manager and the team. 

This is typically a 4 hour process.  We interview the manager.  Then without the manager present, we interview the team.  Then reassemble both and get it all explained, defined, communication processes, time lines, expectations and most important immediate accountability.  The entire purpose is to get this group off to a smooth start. 

There are never any names attached to the questions.  And all of the questions and their answers are left behind for the manager and team members to refer to in the immediate future.

You might ask, would this work for a current manager/team that might just be classified as dysfunctional?  The answer is an absolute yes!  Think about it, spend about 4 hours with an outsider and go away with camaraderie, communication, understanding of each others challenges and a place you look forward to arriving at work at each day!  We can help!  For complete details go to our website and click on Management Acclimatization®.

Regards,

George F. Mancuso, CPC, CEO
Client Growth Consultants, Inc.

P.S.  Management Acclimatization® is a registered name by Client Growth Consultants, Inc.

Do You Know The Cost To YOUR Company’s Bottom Line for Employee Turnover or Retention?

There is lots to be said about this subject and there has many numerous studies to back up what I’m about to tell you.  But please take heed because the bottom line affect is a serious number when it comes to employee retention/turnover.

First let us examine three sets of numbers and/or scenarios;

1.       The average costs to replace an employee, based on at least a dozen different studies range from 25 – 50% of the annual compensation for entry level; 140 – 165% of middle level; and a range of four to five times for executive and/or specialty employees.

a.       The Society for Human Resource Management (SHRM) is the most conservative for hourly employees.  Their numbers state an average cost of $3,500 to replace ONE $8.00 per hour employee!  Most other studies are in the $5,000 to $6,000 range.

b.      Now consider a middle range employee, with an annual compensation of $50,000 and the cost to you at 150% is a staggering $75,000 per employee!

c.       And finally, an executive at a $150,000 compensation level, the cost could easily reach FOUR TIMES that number!

2.       You might ask yourself, what costs were considered to reach these numbers and that would be an excellent question.  The detailed version can be found on my website as a PDF download titled:  How Do I Calculate the Cost of Employee Turnover?

3.       The short version includes the following costs: 

a.       Hiring

b.      Training

c.       Recruiting

d.      Orientation

e.      Interviewing

f.        Termination

g.       Administrative

h.      Lost Productivity

i.         Customer Dissatisfaction

j.        Reduced or Lost Business

k.       Compensation and Benefits

Although this is an intrinsic cost of doing business, it doesn’t have to be quite so painful.  Once it is determined the actual costs your company will be forced to shoulder, you should explain these numbers to your managers. Not only will it give them a tool to be better managers, but you can use it as a point measurement with reference to goals, leadership and performance.

I’ve always been a believer that in most cases it is better to develop a plan to save an employee than to just escort them to the door.  Average performers need the opportunity to become top performers.  And those who are deemed to be below average should have the same opportunity to embrace a growth plan or they should be replaced.  Warm bodies need not apply!

So here you have it, life in the real world or Employee Retention/Turnover/Finance.  Do your own simplified calculations or go to my website and get a more detailed explanation of the costs.  And don’t be surprised if this subject becomes a line item on your next P & L.  

Regards,
George F. Mancuso, CPC, CEO
Client Growth Consultants, Inc.

What is the Perception of the Role of the HR Department and Staff?

Last week’s The Desk of Gman newsletter asked the question, “Why is the HR Department Treated So Badly?”  And as one would guess I received well over 300 Emails directly, through the newsletter and through LinkedIn.  Some took me to task accusing me siding with the “enemy.”  Some explained how and why things worked in their companies and yet others (which was most of the responses) described their perception and experiences with the HR Departments at various organizations. 

I must admit, much of it was apparently painful and truly an eye opener to me.  I say that not because I point the finger at the HR team, but the management team(s) who made, implemented, directed and enforced a system that misses the point that “….it is all about the people.”  When a company gets an employee turnover issue because THE COMPANY’S system is broken, their knee jerk reaction is to hire another at perhaps less money.  But what happens when the new hard charging employee, goes to work in the broken system?  Sooner or later, they are looking for his/her replacement as well.

Below are a few unembellished excerpts from last week’s newsletter:  (Please don’t kill the messenger and your comments are welcomed)

“….I'm surprised that you had a 2 1/2 hour discussion with a C level client. It's pretty darn rare to get this kind of time commitment from someone at the executive level”

“….I have worked for a few large corporations in my career and in each, HR was viewed by the EMPLOYEES unfavorably. In each of these cases, HR was an insidious disease fostered by senior management. Each middle manager was assigned an HR rep constantly digging for the "garbage" on fellow employees.  In every case, my HR rep used information to undermine personnel management, share sensitive information up the leadership chain, causing people to be fired. As a middle manager, senior management driven HR policies create an environment of distrust and constant scheming, allowing personality conflicts to bloom and justifying the friction to create open channels for the flow of unflattering information.”

“….I am an HR Recruiter….I have experienced everything in this discussion and it's frustrating because as a Recruiter, I believe that the H.R. in my title and in my job stands for Human RELATIONS, not Human Resources. But being in the HR department I know for a fact that our employees and especially our Managers feel like HR is against them. Many feel like HR is supposed to be digging up dirt and getting rid of people... it's a tuff job! The worst part is the challenge I face in finding good prospective candidates, getting them to come in, going through the process, and then when I do hire them it's like we do everything we can to get rid of them, instead of onboarding, training and giving them the desire retire form the company. Seems like every time I hire a new employee they are getting nitpicked for their personality, their age, their looks, the way they talk... everything but whether or not they can do the work... this is not only stupid, it also makes me a bit paranoid, which has an adverse effect on my ability to do my job!”

“….Many managers and executives share the same perceptions and where there’s fire, there's smoke. I agree the HR dept. is saddled with bureaucracy and with keeping the company and those very managers out of legal trouble. It is also an area where it is difficult to hire the best leaders so the cycle continues. The same obstacles face the Legal and Compliance teams as well as other support groups. Those these obstacles are material, leadership can make a difference.”

“….Most employees view the HR department as the bad cops that executive management uses to promote and enforce policies and business processes that either hinder or eliminate opposition or new ideas of the individual employee.” 
Regards,
George F. Mancuso, CPC - CEO
Client Growth Consultants, Inc.

Why Is The HR Department Treated So Badly?

Of late I have seen more lack of appreciation of the HR professionals and the departments they staff, than ever before.  Case in point:

I was recently with one my “C” level clients and got into a discussion of employee retention and using me as a retained recruiter.  The conversation (by him) quickly moved to the HR department and his displeasure.  I almost didn’t believe my ears when he described he Human Resource department as pure overhead expense plus a few other negatives.

Because he and I have successfully done business together several times in the past, I made a conscious decision to put my employee retention hat on and come to the aid of HR folks.  I pointed out to him that most companies (his included) lay the following responsibilities directly onto the HR Director and their staffs’ shoulders: 

Recruiting, Retention, Compliance, Safety, Drug Free Workplace Issues, Benefits, Compensation, Community Events, Disciplinary Counseling, Sexual Harassment Issues, Hostile Work Environment Issues, Job Offers, Terminations, Exit Interviews, New Hire Paperwork, Scheduled Performance Review Paperwork, Handbook Policies And A Confidant To You…..and now you tell me that you view this department as direct overhead line item to your P & L?  Do you really mean that?

I will tell you ladies and gentlemen that after a 2 ½ hour gut wrenching and sometimes professionally heated discussion he said to me; “….You are one of the few people that could get away talking to me like this.  But after listening to you,  I have to admit that I have in all probability misaligned my thinking about our HR staff.  So tell me Mr. Employee Retention Specialist, how to I fix this relationship between  me and the HR team?”  Fortunately the light had come on in his head and we set the healing process in motion.

I tell you this true story because it is played out every day in businesses.  My relationship with the HR department as a retained recruiter and/or retention specialists is one of a business partner not as an adversarial relationship.  Are there bad apples in all industries/job titles?  Of course, but the companies that thrive, seem to willing share respect to all team members beginning at the highest level of management or ownership.  If it is not demonstrated there, it won’t be demonstrated throughout the organizational chart of team players.

I sincerely believe what I’ve told here so much so that I even have an Open Letter To HR Professionals on my website.  The occupation of Human Resource Professional truly ranks in the top five.  Be kind to each other and keep on doing what you do best…..people management.

Regards,
George F. Mancuso, CPC
President/CEO
Client Growth Consultants, Inc.
www.ClientGrowthConsultants.com