Most employers would say that the most important part of their business is their employees. Recruiting the right people continues to be a challenge but, increasingly, engagement and retention have moved to the top of the list of employer concerns. Fortune recently reported that 87% of employers said retaining employees is a critical priority.1
Think of your key people – what could you lose if they left? While the cost of losing employees is different for each business, the cost of replacing senior management or executive positions, according to a report from the Center for American Progress, could cost up to 213% of their salary.2
Costs owners need to consider are:3
- Cost of hiring a new person.
- Cost of on-boarding a new person.
- Lost productivity.
- Lost engagement (other employees who see high turnover disengage and lose productivity)
- Customer service and errors (new employees take longer and are often less adept at solving problems).
- Training costs.
- Cultural impact (whenever someone leaves, others take time to ask “why?”).
Do you have an effective key employee retention strategy? Level Four can review your existing plans as well as recommend improvements or additional tools to keep your best people at your firm for years, even if you decide to step back or exit.
Our process includes:
- Qualified plan benchmarking (what are your competitors offering their employees?)4
- Incentive compensation plan review and consulting
- Design assistance and implementation of executive benefit plans
1 www.fortune.com/2016/12/28/employers-2017-employee-retention-unemployment
2 www.americanprogress.org/wp-content/uploads/2012/11/CostofTurnover.pdf
3 Josh Bersin, founder of Bersin by Deloitte
4 Retirement plan and investment advice offered through Level Four Advisory Services, LLC, a registered investment advisor.