One of the biggest expenses for most companies is their staff. Paying salaries and insurance benefits — as well as other expenses like uniforms, equipment and vehicles — add up to a large percentage of any company’s revenue.
When you look at those numbers, it can be easy to get in the mindset that you’re already spending enough, or even too much, on your employees.
Thinking that way, however, is a disservice to your staff and your company as a whole. You have to view those expenses as the absolute bare minimum, and to avoid problems like high turnover, low motivation and team discord, you have to strive for more than the bare minimum.
With high turnover, you need to consider the overarching cost to your finances, your team’s morale and your company’s overall productivity. Having to replace just one employee costs a company a lot of money — up to 20% of an employee’s annual pay.