“How to get more money out of your employees.” It's a provocative headline, isn't it? But it's not just clickbait. And no, we're not talking about locking your employees in for the weekend or shaking them down for cash as they walk through the door each morning.
The fact is, employees are often an SMB's most valuable asset. They also tend to be its biggest expense. Just like any asset, you want to make it as durable as possible so that you don't need to spend money replacing it. And just like any expense, you want to be as frugal with it as you can.
You could try offering a low salary with few to no benefits. But that would undercut the value of your assets. Good employees will be out the door as soon as a better offer comes along, and you'll be left with high turnover expenses, constantly trying to fill open positions.
A better way is to offer employees a great experience with you, at a price that you can afford.
Luckily, there’s a new tool that lets you see for yourself just how much you can save on human resources. It’s called the Recruit-to-Onboard ROI Calculator, and it’s pretty darn cool.
I tried the tool out for myself, using the approximate metrics of an SMB that I used to work for: $100M in annual revenue with about 50 employees. You can see the results by clicking on the image below:
The total annual savings came out to $33-thousand over three years. By far, the biggest piece of this was through a significant reduction in employee turnover, saving my (former) company more than $25-thousand.
Let’s look at some numbers:
When you adopt best practices for the recruit-to-onboard process, you can increase the number of candidates who fill out the application, giving you a richer talent pool to choose from. You can take advantage of pre-hiring screening tools, reducing the number of bad hires. And you can compete with other companies who are using social to find and attract the best candidates.
All of this will reduce the cost of hiring new employees—and increase the chances that your investment in good employees will pay off in over the long run.
That’s a win for any SMB.