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Menu:
Updates:
April 2010:
Expert Insights - Creating a Team-Building Culture
March 2010:
Executive Briefing
February 2010:
Join other leaders who are maximising business performance
September 2009:
JobFit Assessments
August 2009:
Managing Human Capital in Unprecedented Times
June 2009:
Is your Organisation "Best-In-Class"?
May 2009:
Now is the time to Review your Screening & Selection Processes
March 2009:
Candidate Screening & Downsizing - How to make it effective!
January 2009:
All Managers can be Great Coaches
December 2008:
Study proves that Managers rarely understand the Success Factors of their employee
November 2008:
Perhaps if I starve the patient
that will make them stronger
October 2008:
Developing Courageous Leaders
September 2008:
Low Cost Employee Perks that won't punish your bottom line
August 2008:
Lessons of the Square Watermelon
Perhaps if I starve the patient
that will make them stronger!!!
In response to the tough economic climate, there is no doubt that every organisation should be reviewing their budgets and making cuts where appropriate, but the last areas that should be cut are the people capital resources.
As Employee Engagement has been proven to be the direct driver for increased profit, revenue and customer service levels, any cut to your people capital is akin to starving the ailing patient to make them better. Of course, if you do, the end result for both the patient and the organisation is that they will end up being either far sicker or dead!
An organisation's employees are like your children ..
they are the key to a prosperous future!!
So why is it that some decision makers choose to always cut funding to their human capital as their first reaction to difficult times?
The answer is that it "seems" really easy to slash funding to recruitment, performance management, training and development. However, by doing so, this will ensure that the organisation does not grow and prosper and maybe even become critically sick or, in extreme cases, have to close the doors and die.
The question business leaders should be asking is:
Is there a better way?
Are Employee Engagement Levels Really That Important?
In 2006, Towers Perrin/ISR, one of the worlds premier employee research and consulting firms, conducted what it refers to as one of the most extensive Employee Engagement studies ever, culling from survey data spanning more than 664,000 employees at numerous company types across 50 countries worldwide.
To quote from the prestigious researchers own briefing, found at http://www.isrinsight.com:
Previous ISR research found that companies with highly engaged employees have:
ü Lower staff turnover rates
ü Lower absenteeism
ü Higher customer satisfaction and loyalty
ISRs latest research reveals the difference an engaged workforce can make to the financial performance of an organisation.
Specifically, ISR compared the financial performance of organisations with highly engaged workforces to their peers with a less-engaged workforce, over a one-year period. In ISRs own words, the findings were striking.
The companies with high levels of Employee Engagement delivered:
ü 19.2% increase in Operating Income (compared to companies with low levels of engagement experiencing a decline of 32.7%)
ü 13.7% increase in Net Revenue (compared to companies with low levels of engagement experiencing a decline of 3.8%)
ü 27.8% increase in Earnings-Per-Share (compared to companies with low levels of engagement experiencing a decline of 11.2%)
Do I have your attention yet?
"Any increase in Employee Engagement is going to
make an organisation more successful"
Why are People Capital Assessments an Investment and Not a Cost!
Profiles International's people assessments are the most advanced in the marketplace and through their ability to establish JobFit, they will increase your Employee Engagement levels.
Not only do they increase the success rates of selecting future top performers by up to 300%, they also deliver the following benefits¹:
ü 26.3 x Return On Investment
ü 46% reduction in early failure rate
ü 47% reduction in employee turnover
ü 71% reduction in Sales Department employee turnover
ü In all cases where Profiles International assessments were used within the sales team, sales increased as a result
Surely any expenditure that will ultimately increase Employee Engagement and therefore increase profit, revenue and service levels, must be considered an investment ... not a cost.
The best way to slash costs is to reduce, and hopefully eliminate, waste and procedural inefficiencies. The most effective way to find out where these potential savings are is to ask your employees via our Free Staff Attitude Survey (for more information click here).
If ever there was a time to integrate JobFit assessments into all, or at least some, of your people capital processes, it is now!!
Rizvie, contact us today to discuss how Profiles International can provide you with a better way to select, retain, manage, coach and develop your most important asset. For more information please email or alternatively call us on (02) 9936 9000.