Million Dollar Business Decision
It is well documented that the investment an agency makes when recruiting employees is significant. But it may not be fully understood just what significant means in real terms.
Studies have revealed that the average cost of an employee over the full length of employment is 160 times the initial starting salary.
Even a person starting at the base grade (AO1) level, with a starting salary of $33,642 pa, would be a $5.3 million dollar investment for a 30-year duration of employment.
When this is discounted to the average term of employment in the NTPS, ie 7.15 years, the recruitment and selection of just one employee becomes a million-dollar business decision.
With this perspective, it seems logical that a manager would want to maximise the effectiveness of human resources by ensuring that all employees are properly selected, trained and supported.
Things to Consider:
- How much time do you spend in preparation when making that million-dollar business decision?
- Do you always ensure you select the best person for the organisation?
- Do you maximise the effectiveness of all your staff by providing access to training and career development opportunities?
- What support do you/can you offer to your employees to increase their commitment (and in turn their effectiveness)?