The pandemic continues to have a major impact on the way that professionals think about their careers. As priorities change and valuable employees decide to move on to new positions, companies are left scrambling to fill these positions.
Q2 2021 hedge fund letters, conferences and more
Taking Care Of Employees
By 2023, an estimated 35% of U.S. employees will leave their jobs each year to go to work somewhere else.(1) High turnover rates can have a deleterious effect not only on staff morale, but on a company’s bottom line. It’s vital that businesses make employee retention part of their overall business plan.
According to a recent study by the Work Institute, the cost of replacing a single worker is approximately one-third of that worker’s annual salary.(2) Part of this is due to lost productivity, but another important component is escalating replacement cost, even for nonprofessional positions. A survey by the Federal Reserve Bank of New York shows that the minimum compensation workers would require to accept a job was, for those without a college degree, 19% higher in March of 2021 than in November of 2019, an increase of nearly $10,000 per year.(3)
For business leaders seeking ways to deal with the changing worker-employer environment, businesses need to take great care of their employees. Taking care of the employees you have is often your best form of advertising for new ones.
“The key to ensuring you keep your employees is giving them a sense of ownership. Some of our clients offer salaried employees a greater level of profit-sharing in lieu of annual pay increases. Investing in your people is always the right move. The trick is first understanding what actually motivates them and then doing it with careful consideration and planning to conserve your capital.” – MLA Companies co-founder and CEO Seth Morgan
While deciding how to make cutbacks during COVID, some hourly workers have agreed to across-the-board reductions of their hours per week instead of laying off some and keeping others fully scheduled.
“A good workforce is an appreciating asset, not just in operational performance, but in long-term enterprise value. If you’re a business leader, you need to make sure—for the company’s sake and that of the employees—that you and they are positioned to make the very best of that asset.” – Seth Morgan
About MLA Companies
MLA Companies is not a CPA firm that also does consulting. They are consultants whose customized, value-driven approach offers processes and services that align to client’s needs and future growth. Founded in 2006 by CEO Seth Morgan, they are financial experts positioned to understand a client and their business—to protect, guide, and empower. Clients who invest in building relationships with MLA Companies know that their purpose will not change but their service offerings can grow as the business grows. At MLA Companies the discussion with a client is centered around purpose and growth first—then finance and services second. Visit https://mlacompanies.com/
- “Post-Coronavirus Employee Retention Strategy.” Strammer, 18 June 2020, strammer.com/en/post-coronavirus-employee-retention-strategy/.
- Bolden-Barrett, Valerie. “Study: Turnover Costs EMPLOYERS $15,000 per Worker.” HR Dive, 11 Aug. 2017, hrdive.com/news/study-turnover-costs-employers-15000-per-worker/449142/.
- Irwin, Neil. “Workers Are Gaining Leverage over Employers Right before Our Eyes.” The New York Times, The New York Times, 5 June 2021, nytimes.com/2021/06/05/upshot/jobs-rising-wages.html.
