Managing talent is a critical piece of any business strategy. If 80% of a company’s valuation is based on intangible employee assets, as one study suggests, then people are a company’s only true sustainable, competitive advantage. In addition, as the economy improves, the competition for the most skilled workers will increase. Thus, it is important to treat your workforce as a valuable investment that needs to be protected and strengthened.
Business Automation and Software Blog
Absenteeism has a significant effect on company finances and costs US companies billions of dollars a year. On average, unscheduled absences cost 9.2% of total payroll. As this percentage is expected to rise with the aging population, it is important to find new ways to combat absenteeism. Companies can monitor, reduce and react to absenteeism through intelligent investments in wellness programs and technology.
Employee turnover costs are higher than most organizations recognize. When you factor in added expenses and lost productivity, studies show the cost to replace employees range from 20% to a staggering 400% of their salary. In order to improve your Return on Employee Investment® (ROEI®), you must increase employee retention and reduce turnover costs. A comprehensive system like Sage 300 Human Resource Management System will enable you to increase employee retention, decrease turnover costs and thereby improve ROEI®.
Your workforce is a valuable asset that requires investment to achieve its greatest potential. Rather than looking at the workforce as an opportunity for cost savings, you should consider how to increase your Return on Employee Investment® or ROEI®. Part of that investment should include technology that helps drive success and profitability.
As we reported last week, workforce mobility has become a requirement to remain competitive in today’s business world. Mobile Enterprise Resource Planning (ERP) applications will impact any area where employees work more effectively away from their desk. Key areas impacted include: