Is it the next big thing?

Posts tagged ‘retention’

How much are you spending on replacing employees that leave due to WLB?

In an economy where employment is high, attrition is also on the increase and competition for talent is fierce. At an average UK attrition rate of 15%, this poses a huge cost to organisations and with this knowledge, it’s more important than ever that companies measure, monitor and understand why their employees are leaving and work out what it will take to retain their top talent.

What are the benchmarks?

Leading research stats suggest that one of the top three reasons employees either leave their company or accept a role with a company is work-life balance (WLB). We’ve identified three separate pieces of research (LinkedIn, Onrec and Bamboo HR) which consistently indicate a massive 30% of employees that leave, do so due to work life balance.

How much does it cost?

It’s widely published that the true cost of replacing a staff member averages at just over £30,000 and varies by sector with accountancy/ legal sectors bearing the highest costs.

This figure includes direct costs such as advertising, recruitment/ placement fees (averaging at around £5,433), and incorporates the cost (wages) of a new employee that are spent before they reach full productivity, which is between 4 and 12 months depending on the role/ sector plus management time office set up etc.  However, it doesn’t include the indirect impact of disengaged employees which can happen when someone leaves and may lead to increased sickness/ absence costs.

This figure of £30,000, may seem high to employers if not all elements are counted as part of replacement costs, perhaps because they are considered an overhead or a necessary cost of running the business?. However, with new recruits taking an average of 27.6 days of HR director time to hire and get up to speed (Onrec), plus onboarding, training and simply paying a recruit before they are productive and the costs soon start to pile up.  Overall, this is a significant cost to businesses of all sizes;

  • If your company employs 10,000 staff and you have an attrition rate of 8.5%, this could translate into an annual cost of replacing staff that leave due to WLB of £7.6 million.
  • If your company employs 250 staff and you have an attrition rate of 10%, this could still translate into an annual cost of replacing staff that leave due to WLB of £180,000.

Use our calculator to see how much regrettable attrition due to WLB could be costing your business.

Questions

Could it be that viewing the full cost of recruitment as an uncontrollable overhead is in fact, costing businesses millions of pounds?

Could focussing on retaining top talent that may leave due to work life balance priorities add a quantifiable, direct cost saving to the business?

Why do your employees leave? do you know and track the cost impact on your business?

I hope you find our calculator useful and thought provoking. Please let us know your comments on these numbers and whether you think this is a priority that is receiving enough investment and attention.

 

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What’s the difference between Part-Time and Jobshare?

As a Jobshare specialist, one of the common questions and misunderstandings we come up against is “but how is Jobsharing different to part-time?”

Successfully differentiating between part-time roles and Jobshares is a key step to enable organisations to take full advantages of this way of working. The answer to this question is simple, the key difference for organisations is CONTINUITY.

In other words, two part-time roles carrying the same title is not a Jobshare, why? because without a handover, communication and ownership of the full-time role there is an ongoing break in continuity on a weekly basis. This means that progress with clients, colleagues and projects regularly comes to a standstill until the part-time employee returns to catch up and progress their tasks.

A Jobshare partnership is set up so that both partners take ownership of the full-time duties from the outset, whilst leadership on particular accounts or projects may emerge, the handover and communication covers all aspects. This means that there is no break in continuity and no catch up, so productivity and progress is optimised and continues on a full-time basis.

For the Jobsharers, this means their days off really are days off and often feedback that it’s a very supportive arrangement because you have another to share ideas and challenges with, who has an equal interest in making the role a success. Something which can’t be replicated by a boss, a partner at home or another colleague as they aren’t in the same role.

A common mistake made when embarking on a Jobshare is to split the role into two prior to recruitment and the challenge this can create (apart from additional work for HR) is a disconnect of ownership within the Jobshare itself, which can lead to competition and unhelpful behaviour patterns emerging across the partnership.

Check out this case study and if you’d like to find out about how Jobsharing can work for your organisation, as part of talent attraction or retention strategy, contact sara.horsfall@ginibee.com.

 

How does Ginibee make Jobsharing easy?

When we realised that uptake of Jobsharing was around 1% despite being the only career option that offers a win-win to both employer and employee in terms of productivity, opportunity and continuity, we wanted to know why.  Our research, carried out by CJBS MBA candidates combined the views of large employers with those of over 200 candidates looking for flexible work and revealed some interesting findings:

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22% of candidates hadn’t heard of Jobsharing

 

42% of candidates didn’t think their employer will support it

 

38% of employees would consider Jobsharing if their employer supported it

 

 

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80% of employers were concerned about how to recruit one half of a partnership

 

The main barriers to Jobsharing are finding a compatible partner and the perceived hassle (to employers) of setting it up

 

43% of candidates would actively search for a Jobshare role

 

This research led us to take action as we could see the potential for Jobsharing to solve problems for both employee and employers, if these barriers were removed.

We’re proud to announce that our Jobshare platform is now live and was launched on Sunday 24th January at The New World Of Work, an event we partnered with Mum Plus Business for at the CJBS Centre for Social Innovation.

The platform empowers candidates to self-select Jobshare partners with support from Ginibee to create an “interview ready” partnership.  It makes it easy for employers by taking away the hassle of setting it up and sustaining a Jobshare, so they can offer equal opportunity to Jobsharer partnerships without creating additional work.

If you’d like to know more about Jobsharing, either as an attraction or retention strategy,  please get in touch.  You can find out how it all works at www.ginibee.com

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