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Return on Employee Investment

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Thu May 24 2012

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(From The Huffington Post) -- Employees are the lifeblood of almost any company. They’re the group of people that work collectively -- often behind the scenes -- to ensure that everything goes smoothly. Return on employee investment comes in the form of productivity and profitability. Hiring the wrong people, however, comes at cost.

"Consider the loss of training, and the manpower and time it takes to develop the necessary skills in a new employee, or the loss of morale when a team member leaves," Samantha Crous, country manager of the CRF Institute told BizCommunity.com. "But enhancing employer branding does more than save money. It also serves to boost the alignment between the employer brand and the consumer brand, which, by influencing both performance and reputation, can have a positive impact on the bottom line."

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A new infographic by Sage North America helps capture the potential value and cost of employees. Positive return on employee investment begins in companies that take a strategic approach to talent management. These companies see a 40 percent lower turnover rate, double the amount of revenue per employee and 38 percent higher engagement. On the more negative side, the cost of replacing an employee has been shown to be 30 to 400 percent of their annual salary, along with time and energy spent looking for a replacement.

Check out the rest of the infographic from Sage North America.

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