I’m not treading new waters when I compare your business to a sailing ship. But you don’t mind, do you? You’re the captain of your ship, the skipper. You can’t help but smile that one time a week one of your employees says “aye aye” when you give out an assignment. This is your boat.
How do you know if your boat has a hole?
When a boat gets a hole, water begins to seep in, from the floor. Obviously. On a large enough ship, though, this can be tough to detect when you’re directing the vessel from the top deck, and the water is entering far below.
In a big enough business, you can have the same problem, unable to detect a money leak at the base level of your company when your attention is needed at the very top.
So while everything might look fine from your perspective—totally normal, even—let me direct your attention to the staffing-shaped hole in your company.
Training new employees always costs more than keeping employees. One estimate puts the cost of replacing an employee at 150% of the previous employee’s annual salary. While the cost of lower-level workers will be a bit less, you still cannot afford to be constantly replacing your workforce.
You also can’t afford to be drawing from two to six staffing providers. Each will have their different methods for providing you workers, and each will have their own mark-ups on cost.
These costs—costs of training, costs of replacement, costs of staffing providers—stack up.
In a sinking ship, once water starts collecting, the ship gets heavier, and more water pours in, and the ship sinks faster. In other words, a ship collecting water not only will start to sink, the sinking will accelerate.
Likewise, one study found it took an average of 6.2 months for a company to break even with a new hire. So if you’re replacing your workforce more frequently than six months, your business is perpetually “sinking” when it comes to turnover cost.
Or maybe you have a problem getting to 100% filled on your daily labor quotas. With the national profit per employee average at $28K, if you are spending entire portions of the fiscal year understaffed, that particular money leak will only get worse.
We don’t want your ship to sink. Yet we know that most business captains aren’t experienced in Smart Solutions can repair those holes and keep your vessel sea-worthy. We specialize in filling your staffing positions 100% with workers who want to stay, whose goals align with your business and who won’t be a money leak for your company.
Download the special report The Growth-Strangling Cost of Normalcy: How to break freefrom “business as usual” for maximum profitability in outsourced labor