I am losing all my good people right after I get them trained!!
Value versus Direct Compensation over a time period
If you have positions within your company that take two to five years to train, you might have a problem with their value going up faster than their pay raises.
The above chart represents an actual company that was losing highly skilled workers to their competition due to pay raises not keeping up with the actual increase in value of the employee. Soon after passing a company training class they would leave for another company paying $2 more an hour.
All that value and training lost and now giving value to the competition!! The competition had turned the training program of the other company into a competitive advantage for them!! All the value with none of the cost!!
This was corrected by having a value based compensation program with objective criteria set by the company. Turnover for senior technicians dropped significantly and was never an issue again. Let’s stop the bleeding and get control over your most valuable asset – your people!!
People Profits is a financially focused Human Capital Strategy firm and is here to help you with a Human Capital Plan and Strategy that will deal with this issue.
©2012 People Profits, LLC