Strategic HR Weekly "Sales" Tip #6
If you don't have a cost of problem, you don't have a problem!
That line above is so true in business to business sales, or if you have to "sell" something internally to the C-suite. If we can't attach a financial impact to an issue, it's hard to get any action on it. And in HR Employee Productivity is one of the toughest areas. It's hard to talk about in a convincingly business-like manner, but it's an area where SMBs leave a lot of money on the table.
So how can we heighten the importance of the issue in a CEO's eyes?
The picture above starts to address the cost by showing the "wasted wage dollars" of a company with a $1,500,000 labor cost and employees engaged at an estimated 75% Employee Productivity level. Whether it's 70% or 81% or 85% really doesn't make a huge difference. The reality of it is is that the employer is paying for 2080 hours of work per year, and only getting 1,560 hours (at 75%). So that's $375,000 of wasted wages.
In a 30 employee company (which is what this illustration is based on), a 2.5% increase in Employee Productivity is equal to the work they're getting now from 1 employee. And 1 employee (in this example) costs them $50,000! So they could either let someone go, or not need to hire a new person as the work level of their business increased. And why not drop those savings to the bottom line with the help of your HR services?