Employees are the biggest asset
of an organisation. They shouldn’t be considered as cost to the organisation.
The cost incurred by pay, fringe benefits and training should be considered
as investment. Well trained employees perform better towards achieving the
organisation goal. Attractive pay and benefits keep the employees happy and
engaged with the organisation. Employee engagement is key to successful organizations. However, annual goal setting and performance appraisal
are the yard stick to measure their contribution to the organisation.
Best performing employees should
be retained and their contribution leads to organisation growth through
achieving organisation goals. Higher employee turnover is cost to organisation
by means of advertising, interviewing, on boarding and training process. The level of contribution by a new recruit is
fairly low up to certain time period compared to a seasoned employee who leaves
the organisation. Such long service employees that leave
the organisation take the historical knowledge with them. In many occasions,
this historical knowledge is much more difficult to learn by a new employees.
In this context considering employees as cost, and not retaining them is real cost to the
organisation.
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