Category Archives: CFO

Increase Your Bottom Line by Retaining Employees

Posted on: March 14, 2017

Before you let your employee resign, you might want to think about ways to retain them.  Employee turnover rates are costing companies staggering amounts of money each year.  According to the Society for Human Resource Management (SHRM), it costs $3,500 to replace an $8 per hour employee. Now, think about that with a different level of salary and the cost becomes astronomical:

  • For entry-level employees, it costs between 30-50 percent of their annual salary to replace them.  For example, if you lose two entry-level employees in one year, at 40% of the average salary of 40,000, will cost $16,000 per employee to replace them.  So losing only two employees would cost your business $32,000.
  • For mid-level employees, it costs upwards of 150 percent of their annual salary to replace them.  
  • For high-level or highly specialized employees, you’re looking at 400 percent of their annual salary.

To think about those percentages in more tangible terms, you can really just do the math.  If you lose an entry-level employee, at 40% of an average salary of 40,000, it will cost $16,000 to replace them.   If only one mid-level employee with an average salary of $80,000 decides to resign, it will cost your business $120,000.  If a top level executive leaves you, with an average salary of 120,000, it will cost $480,000 just to replace them.  As you can see from this real-world example, it is worth your while to invest in your employees.

But what does investing in your employees really mean?

By providing employees with raises and giving them a good benefits package will certainly help to retain your valued employees, salary and benefits aren’t the only reason that people quit their jobs.  Other factors such as company culture, meaningfulness of the work they are doing and recognizing a job well done to name a few.  On way to help retain your employees and allow them to feel comfortable and valued in your organization so that they never want to leave is through office design.

As you can see from these statistics, employee turnover is incredibly expensive. Aside from the financial burden, there are other ways that employee turnover impacts a business as well. For instance, advertising, interview expenses, the cost of training and onboarding prior to and during the hiring process.  Not to mention that often when a new employee is hired, productivity takes a hit while the new employee adjusts to their position.  Because of the tremendous impact that employee turnover has on a business, it only makes good sense to have a strong employee recruitment and retention policy firmly in place.

Office design is an often overlooked aspect of employee recruitment and retention. By using strategic office design, you will see an immediate return on investment when comes to your employees. Consider incorporating the following design features to enhance your workspace.

OPEN OFFICE LAYOUT

An open floor plan encourages teamwork and collaborative efforts amongst staff. Allow them the choice by including open and enclosed spaces, comfortable lounge areas, and quiet rooms where they can choose the optimal work space. Providing employees choice pays off.  According to Dana Manciagli, a global career expert, “companies that grant employees choice grew more and had one-third the turnover versus more traditional organizations.”

TECHNOLOGY

Technology is changing very rapidly and these technological changes have altered the way people work, so having technology that supports a culture of collaboration, innovation and creativity is a must to attract and retain top talent.  WIth up to date technology, employees will gain added flexibility, remote access and improved collaboration.  

COMFORT/FUN

With people spending more and more time working, employees want their office to feel more like home. Offices should include comfortable seating areas, kitchens and cafes and perhaps even game rooms or areas to have fun.  Including areas in the workspace that are comfortable and inviting will allow employees to feel more satisfied with their jobs. By providing the new workforce with the comforts of home and breakout spaces with a relaxed and social vibe, it will create a positive work environment that is enjoyable to spend time in.

REPRESENT YOUR BRAND AND CULTURE

Representing your company’s brand and culture through office design will appeal to top talent because they want to feel meaning and connection to the organization for which they work. So as recruits walk through your door, they should be able to immediately sense who you are as an organization. From the logo and colors, to the furniture and even having the values on visual display will be a huge selling point for potential employees.

Attract Top Graduates

Attract Top Graduates To Stay & Work in The Tri-State

Posted on: January 10, 2017

Are you poised to attract top graduates? 2017 is the year that businesses begin investing in the future of the Tri-state area.

Did you know that in this area, there are a number of colleges that are continually producing top graduates in their respective fields, yet the Philadelphia area continues to lose this talent to the larger markets? As we look ahead, what steps can be taken to attract top graduates, refuel the business of the area and keep top talent working in the Tri-state?

Why is it so important to attract top graduates in the area? According to a recent study, the presence of young professionals in a city is the key to continued economic growth. Exploring ways that your business can entice the best talent to stay will ultimately help your organization reach its corporate goals. The Tri-state area has often had a reputation for its inability to keep young college graduates here, but that is beginning to change. Let your business be a part of that change.

Flexibility through Technology to attract top graduates

When looking for ways to attract top talent and have your business begin to pick up speed in the new year, think about technology. Technology, when fully integrated and optimized will bring a number of benefits and strengthen the fiber of your organization. For jobseekers, using company technology to allow for remote collaboration, video conferencing and other applications will support their desire for flexibility, comfort, and choice in their work environment. For your business to be running at its ideal operational efficiency, your technology systems must be updated and be adaptable to accommodate rapidly changing business systems.

Embrace the future to attract top graduates

The new year is a time of reflection on the past and goal setting for the future, ask yourself: is your company on track to continue growing? Think about your current workspace, is it a space that maximizes square footage while minimizing costs? Is your office design in line with your organization’s goals? Making sure that your workspace is designed to be flexible and adaptable leaves room for your company to change and grow in the future. By creating a space that fits the needs of top talent and current employees, your organization will have set the stage for growth because a well-designed and efficient office environment leads to innovation, creativity, and productivity. Focusing on maximizing operational efficiency through office design will minimize costs while protecting your bottom line.

Consider the Impact of Strategic Office Design to attract top graduates

So often strategic office design is seen only as a cost and not a driver of profitability. Make this the year that you consider making changes to your office environment that are in line with your corporate goals. The impact of a well-designed space will yield maximum results for your business and help revitalize the economic growth in the Tri-state area.

Serving other businesses within our community is important to us, which is why we are focused on making the Tri-State area more magnetic in 2017! We would love to hear how you are handling the changes in this changing economy, and how you plan to attract top talent to grow your business further.

How the CFO can help Reduce Distractions in an Open Office

About 70 percent of US companies have adopted an open office. The benefit of having an open office is that it maximizes space while keeping down costs, since it reduces the cost per square foot of each employee. But the amount of distractions employees encounter could often hurt productivity.

A  recent study suggests that distractions have the potential to cause 86 minutes of lost productivity a day. So to get the most out of your employees workday, try recommending a few of these tips to eliminate distractions in your open office to achieve a productive, positive office environment.

TURN OFF COMPUTER SOUNDS

Computer sounds are a major source of interruption and are distracting for many employees.

WORK AT NON-PEAK TIMES

Stagger your employees schedules. Besides creating a quiet office, flexible schedules are also viewed as a benefit amongst employees and new hires which will help you recruit top talent as well.

NOISE CANCELLING HEADPHONES

Noise cancelling headphones have become a must-have in office accessories.  By wearing noise cancelling headphones, it indicates that the employee is busy and doesn’t want to be interrupted, as well as eliminates background noises within the office.

MASK THE SOUND BY INCREASING BACKGROUND NOISE

This one may sound a little funny, increasing noise will eliminate it?  It actually works.  White noise (like a small fan running at your employees’ desks), makes conversations sound unintelligible to the listener.

QUIET ZONES

Most companies who have an open office, have incorporated areas that are quiet zones.  This is a designated area for those that have an important task to be completed and do not want to be interrupted.

Erogonomics Cost Justification

According to research, upper extremity musculoskeletal symptoms among computer users are reported to be as high as 63%. Making changes to the work environment to improve the safety and health of workers will often reduce a company’s costs, improve productivity and quality issues, and decrease the chance that employees will file a complaint with the Occupational Safety and Health Administration (OSHA).

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