How Much Does it Cost YOUR Company to Replace an Employee?
Posted in Newsletters | September 9, 2010 by jason
Newsletter: How Much Does it Cost YOUR Company to Replace an Employee? – Aug 07, 2009
The American Management Association estimates the cost of replacing an employee at 30% of his or her salary. According to the U.S. Department of Labor and Statistics, half of all new employees leave within six months because they are either uncomfortable with their work environment or unsatisfied with their job. Considered together, without an appropriate solution for making new and existing employees feel comfortable in your company, this can cost your business a lot of money.
Many companies have seen this and learned that the costs associated with recruiting new talent and the opportunity cost of losing an existing employee are too high to be ignored. Therefore, many companies have instituted on-boarding programs to help welcome new (and in many cases existing) employees to their company – typically giving out welcome kits with items branded with the company’s name and logo. These programs and kits are meant to make the employees feel valued and immediately make them feel like they are part of the company.
These programs have worked wonders for thousands of companies around the world – here are a couple of examples:
Earthlink Reduces New Hire Turnover with Employee Welcome Kits
With offices scattered across the country, Earthlink had difficulty welcoming new employees to their respective satellite offices – and consequently experienced new hire turn-over rates that were unacceptable to the Earthlink Execs. Knowing that employees are more excited about their jobs if they feel valued by their co-workers and management, Earthlink customized a new hire kit of logoed products and sent the kits to new employees before their first day of their their new jobs. Since implementing this program, Earthlink has reduced their turnover rate of new employees by more than 50%. The success of its new hire program has prompted Earthlink to expand their efforts and give away branded gifts during the interview in order to entice candidates, earlier, to accept Earthlink’s job offers earlier.
Akin Gump Strauss Hauer & Feld LLP Uses Welcome Kits to Smooth Transition into New Office
When Akin Gump’s New York City branch moved into a larger, greener office building, its HR team knew that there would be some discomfort that typically comes with moving to a new environment. So, the team sought to go out of their way to make their 390 employees feel welcomed in their new space – and also, inspired by their new eco-friendly building, instill a new eco-friendly attitude. With a combination of imprinted shopping tote bags, microwaveable mugs, and candies, Akin Gump collaborated with ePromos to give the p erfect welcome kit to employees on their first day at the new office. The welcome kits achieved all their goals and immediately made their existing employees feel more comfortable in the new environment. The positive feedback from the welcome kits continues today as employees continue to use their mugs and tote bags in and out of the office.
When you start thinking about product for your welcome kits – think about including promotional bags
, and apparel
. These are the products that we have seen companies have the most success at accomplishing their goals.
Employee Award and Recognition Programs
Employee recognition and milestone programs are an important – some would even say essential – part of retaining employees, keeping morale high, and ensuring success for your business. A 2008 World of Work study published by Randstad, an Atlanta -based employment-services firm, reported that 76% of survey participants said that feeling valued was the most important factor in job satisfaction and 66% said that recognition and appreciation was second most important. With such a simple solution to keeping employees happy, it’s no wonder so many companies have made rewarding achievements and milestones an important part of their company culture.
However, many companies are going about rewarding their employees in the wrong way. Many companies think giving out cash rewards is the best way to recognize their employees. But, according to IncentiveMarketing.org, employees see merchandise as more rewarding than cash. In fact, they say, more than 60% of employees view cash as part of their compensation package, and merchandise as a “trophy.” In many cases, promotional products are even less expensive than typical monetary bonuses so companies end up saving a significant amount of money without backlash from the recipient. This discrepancy makes promotional products a more e ffective way to recognize your employees’ accomplishments and contributions to your business. And, with the wide range of promotional products out there, finding just the right product to communicate your pride for and appreciation in your employees’ and company’s milestones and accomplishments is easy.
Here are a couple of ways companies have had success rewarding their employees with promotional products.
Equinox Celebrates Milestone with Commemorative Globe
As Equinox Gyms anticipated the signing of their 100,000th member, management sought to reward their employees for their roles in achieving this milestone. On the day the 100,000th member signed with Equinox, the Equinox team placed branded magnetic desktop globes with a commemorative message on each employee’s desk to celebrate their accomplishments and motivate them to continue to work hard. The gifts were a success – employees appreciated how management acknowledged their role in expanding Equinox’s clientele and that their company “really cares” about them. The Equinox team reported increased employee morale and motivation to reach the next 100,000 benchmark – meaning the promotion not only enhanced employee morale, but also productivity.
Atlas Recognition Program Offers Employees Options
Atlas Air, a longtime proponent of employee recognition programs, wanted a new approach to recognizing their employees’ important service milestones. Traditionally, whenever one of their employees would reach their 5 year, 10 year, or 15 year service milestone, the company would give them a standard gift to celebrate the occasion. However, because Atlas is such a large and diverse company, they needed a way to reduce the time it took to manage this program – their solution was to set up an online company store where employees have the ability to select the gift they want under the specified milestone.
Employees have responded positively to the opening of the online store because they feel more fully enveloped in the company culture. They also are able to choose the gift that best represents their likes – rather than simply having a company give them the “standard gift” that was normally give out.
The Atlas Air management team noted that it has created a greater sense of community within the company as well. By enhancing their existing employee recognition program, Atlas made workers happier and created a more efficient work environment.
We know that custom awards
are important to your employees, and they should be to you. These promotional items will stay on your employees desk giving your logo optimum retail space, and your employee will also have bragging rights around the office.
Upcoming Promotional Event Dates
September is National Campus Safety Month
With students returning to college campuses during the month of September, National Campus Safety Month is the perfect opportunity to establish a stronger campus presence. Whether students are rising seniors or incoming freshmen, everyone can always find ways to better protect themselves and stay safe on campus, and your company can be the one to help them.
By giving away imprinted safety whistles
and custom clipboards
featuring emergency safety tips, you’ll raise awareness about campus safety and get your company name into the hands and minds of students. ePromos offers a wide selection of safety related products
. All you need to do is add your company name and contact information, and you’ll have a great promotional product with a huge target audience!
Plan ahead and take advantage of the following promotional opportunities.
Boost Morale and Improve Corporate Culture
Whether it’s the holidays or another special occasion, employee gifts are essential to build strong relations in the workplace. As we mentioned in one of our earlier sections, employees want more than just cash – they want something that they can hold onto, display, and use. Here’s an example which shows how well employee gifts work as promotional tools and morale boosters inside a company.
Logoed Lunchboxes Serve as Economically Smart Holiday Gifts for Faculty and Staff of Rollins College
Rollins College, in Florida, holds an annual party around the holidays. At this party, they invite their staff and faculty to lunch and normally give out a gift to show their appreciation for their hard word during the semester.
At their most recent party, the Rollins College team gave away insulated lunch boxes to the attendees. The lunch boxes served a couple of purposes. First, it was an economical choice due to the economy – the team had noticed many of the attendees “bagging their lunch” more than usual to save some much needed cash. Second, to unveil the school’s new logo. The team tells us that everyone loved the lunch boxes and that they regularly see their staff getting a lot of good use out of them.
Top Employee Gifts
As low as: $24.18
Improving Your Health and Safety Initiatives
Encouraging healthy and safe behavior in the workplace is important for any company. By reinforcing messages that encourage employees to practice safe and healthy behaviors, companies can save thousands of dollars in insurance premiums every year and reduce the amount of money lost from missed time due to injuries. Some of the best ways of doing this is to utilize promotional products to reward safe behavior and reinforce training messages that you want them to remember.
Here is how one company used promotional products to encourage safe behaviors on their plant.
PT Badak Marks Significant Company Milestone, Encourages Safe Behavior and Boosts Productivity with Brand Name Imprinted Gift
Recently, PT Badak distributed imprinted stainless steel bottles to its workers to commemorate a company milestone “10,000,000 Man Hours without a disabling injury 2008.” The use of these imprinted water bottles served two purposes. First, the imprinted mugs ultimately made every employee a walking billboard – constantly reminding everyone around them of their accomplishment. Second, these bottles enabled employees to stay hydrated in the hot Indian climate. They were able to have water at their work stations for longer periods of time which led to fewer trips to refill their water bottles, which further led to the less likelihood of an accident occurring (an d increased productivity).
Top Safety Incentives
As low as: $1.57
As low as: $3.99
As low as: $5.56