With recent statistics highlighting that the cost to replace an employee can be as high as 150% of their annual salary (Mercer Consulting), it is clear that inspired, motivated and engaged staff can have a significant positive impact on your bottom line.
A recent visit to a prospective client highlighted this. The company employs 50 people and last year they experienced a 16% turnover in staff (8 employees). Based on the assumption above, and paying an average salary of $50,000, the cost to this Melbourne business was around $600,000!
Put another way, that represented around 6% of their revenue!
Implementing a reward and recognition program will not guarantee that you can reduce your staff turnover to zero. However, a well thought out and implemented reward program focused on corporate KPIs should have a major impact on staff morale, reducing staff turnover and improving customer service, while paying for itself many times over.
With a such a positive return on investment why would you not consider a reward program for your business?