Great Teams Come From Well Trained, HR Supported Managers

Great Teams Come From Well Trained, HR Supported Managers


By: Dixie Agostino, SHRM-SCP


Recruiting is expensive, turnover is expensive, and training is expensive.  Since it can be challenging to calculate the return on investment on these expenses, many times they get pushed to the bottom of the pile, relegated to the cheapest vendor, or ignored all together. Yet they are all connected.


Compared with disengaged teams, engaged teams show 24% to 59% less turnover, 10% higher customer ratings, 21% greater profitability, 17% higher productivity, 28% less shrinkage, 70% fewer safety incidents and 41% less absenteeism.


The single biggest factor in an employee’s engagement is their boss.  Engagement begins at the local level through great management.  Managers can make or break a team, yet often very little money or time goes into ensuring managers are effective.  And great managers must be either recruited or trained.  Few just occur naturally.


Gallup estimates that turnover costs 1.5 times that employee’s annual salary.    If a 100 person company with an average salary of $50K and a 10% turnover rate can drop that rate down to 9%, that is a savings of $75,000.  So, next time it seems like there’s no budget for recruiting highly skilled managers and developing current managers, you now know the numbers behind WHY those are solid investments.


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