As the great Wayne Gretzky once said:
"You miss 100% of the shots you don't take."
Your employees miss a lot of shots when they don't show up! Every company has employees who are chronically absent. These employees lack character to live up to their responsibilities. They have excuses – they always have excuses. Some of their issues are self-inflicted. You can continue to deal with it or you can make changes. (Note: I am not referring to a one-time issue of a good employee.)
People Profits Principle #92
As wages are increased by a $1/hour the character
of the person applying increases exponentially
People Profits has found the employee(s) who are chronically absent are also under productive when they are present. The results are very costly including – lower productivity, time spent managing and working around absent worker(s), loss of specific skills which may delay work and final results, loss of engagement and morale due to chronic problems and lastly perceived lack of control by management.
Here are five of the many strategies to increase attendance, productivity and ROI:
- Quit wasting time and money on chronic problem employees.
- Determine skills to be cross trained before the employee(s) are cut loose.
- Many times you can have three employees making $12 an hour versus four employees making $10 an hour. You are already coming out $4 an hour ahead. Many times with three productive employees you are out producing the four employees. Your costs have gone down and your productivity has increased.
- Concurrently with the above, inject a general increase in the productivity standard. The better employees will make it happen. The higher productivity increases the employees value and you can increase their wages again which will further engage and retain them.
- Take the time to listen to your productive workers - they have ideas that will be productive.
The real issue is change - are you ready to make it better?
People Profits case study: A manufacturing/service company had a compensation policy of pay the least amount possible - don't give raises until the employee is walking out the door. Then offer less than they are really worth. We replaced with a compensation policy and procedure based on employee value and subsequent increases in value. The result was fewer employees, making more money and dramatically higher productivity rate. Employee engagement and retention soared - the ROI was out of sight!!
People Profits mission is to elevate your HR department to where you need them to be. The strategic driver of your greatest asset!! We do this by building a comprehensive Human Capital Strategy and Plan including all 7 elements of HR with no conflicts and focused on business and financial principles.
Profits and Growth through Human Capital Strategy and Systems
See HR differently
Clark Ingram, MBA, SPHR, CEBS, CPCU is the principal of People Profits, www.PeopleProfits.com ©2015 People Profits, LLC
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