Updated: Feb 3, 2021
It's a new year, start it as you mean to go on! Put your money where you can save more!
Let's say you run a medium-sized business with 150 employees. A single employee's average annual wage is around $80,00. This equates to a $12M annual payroll.
Now let's play by the rules of averages that have come from studies:
9.7 days of sick leave per person per annum
Total direct costs of $522,345
Total indirect costs of $503,653
Totalling over $1m every year!
Studies also found that the average staff turnover rate is 18%!
With 150 employees, the forecast analysis says that 27 people will leave the business within a year. Depending on their position, this can cost between 30-150% of that person's wage to recruit, hire, and train for the replacement.
As an example, let's take the lower end of the scale - 30% of direct and indirect costs.
These 27 people will cost the business $648,000 a year.
If it's 50% of direct and indirect costs, it will spike up to $1.08M.
Staggering isn't it!?
Another missed opportunity is your employees' declining productivity because of stress, frustrations, or Mentally Unhealthy Workplace experiences. But did you know that a happy workforce is 10% more productive? This could mean $1.2M savings for your business.
So how can you turn these costs into savings?
1. Carry out a Psychosocial Risk Assessment
2. Evaluate the results from the assessment and know what targeted training will you need
- Key Leadership Behaviours for Success and Time Management for 5 of your leaders
- Effective Coaching and Creating Confidence within the Team for 6 of your leaders
3. Develop a peer support group and establish a workplace strategy for Mental Health. Incorporate Mental Health First aiders and workplace mental health programs.
4. Review company policies to create uptake. Examples include flexible working schedules, the option to work remotely, harassment, and bullying.
5. Conduct resilience workshops for your team.
6. Pulse test will be conducted after 100 days.
Let's say this only costs you around $30-60,000
In less than a month, you'd instantly notice the improvement in your business because of your initiatives.
And a year after using the same figures above...
Absenteeism will reduce by 10% - saving $102,000
Staff turnover will reduce by 25% - saving $162,000
Overall productivity will improve by 3% - saving $360,000