The cost of demotivation: hiring a new worker is three to six months’ salary for the employee who leaves
Stress is the main demotivating factor of a worker. On the contrary, a happy one increases your productivity, improves the organizational climate and, of course, benefits the brand image in the market. But the demotivation of employment is a hard blow for companies and a more than probable loss of the employee.
According to Cobee’s own calculations, a digital platform that allows employee compensation to be managed flexibly and fully automatically, the cost of hiring another worker is three to six months’ salary for the outgoing employee. These data are mainly due to the drop in productivity when the employee leaves, to the cost of training the new employee and to the low productivity of the latter during the initial stages, and in addition to the administrative costs of resignation and re-employment. hiring process for the new candidate. The cost of hiring a new employee would average € 4,000 and last approximately 52 days.
Demotivation at work affects both workers and companies. In the first case, the cost leads to physical or psychological, social and occupational problems. The latter stemmed from his inability to use all of his abilities and skills. For the company, the economic cost is clear. According to the IEBS School, a company’s productivity can drop by up to 40% when workers are uncomfortable with their jobs. Talent is hard to find, but it is even harder to retain it. What can we do in these cases? Social benefits are a big part of the answer.
Reasons for lack of motivation among workers
One in two employees are not motivated in their work, according to data from Cobee. Monotony, lack of feeling with your manager, overwork, feeling of a salary below your value or the lack of a full compensation policy are usually some of the reasons that most affect demotivation at work. A demotivated employee is an additional cost because his performance and his spirit of collaboration are lower.
The company can offer all kinds of social benefits to its employees: from those related to their social and physical well-being to salaries or those related to mobility, etc. However, it is important that they be accompanied by a preliminary study of the situation in the company and direct communication with the worker in order to anticipate his needs in order to personalize the plans and offer him what he really has. need. In addition, some of these advantages are considered obsolete because they have not been adapted to new, more innovative working models (those based on new technologies).
The workforce wants more ambitious and dynamic plans, capable of adapting to new times and unforeseen situations. Due to the stress caused by months of confinement, more specific covers targeting the care of the mind (psychological assistance) and purely physical well-being (well-being programs) are beginning to be valued. Flexible remuneration is also in the spotlight of the new strategies led by the human resources departments. Workers can take advantage of certain benefits through their payroll and obtain attractive tax benefits.
“According to Cobee data, 54% of workers consider digital transformation to be a priority for their company. Many plans to compensate the worker were not implemented due to the lack of mobility imposed by the state of alert. New situations demand new solutions and these require digitalization ”, explains Borja Aranguren, CEO and co-founder of Cobee.
A flexible and customizable portfolio of employee benefits
In most companies there are groups of workers with very different vital, economic and family needs. For those with an established career and a relatively short career prospect, subsidized training is not what interests them the most. For others, time freedom and mobility are more desirable than pension plans or medical services.
This is why generalist and impersonal benefit plans seldom come close to their goal. 80% of employees, according to Cobee, do not agree with the way their companies have designed these plans because they do not meet their expectations, nor their wants or needs.
The solution may be simple: meet the demand for social benefits by offering personalized coverage that meets specific needs. Communication with employees is the main tool to achieve this goal; analysis, communication and study of results. Only then will the company be able to satisfy its employees.
What does an employee need to be happy
From Cobee, it was detected that “each generation has its own pool of benefits”. Younger people appreciate flexibility and that is why they turn more to companies that allow them to decide where and when to do their work. Many of them are already asking for unpaid leave or training in new skills to help them develop their professional careers.
Health is also now a priority, especially after the Covid has locked us in our home. For this reason, many employees are interested in being able to perform related activities during working hours: discounts for going to gyms near the office, areas for sleeping or resting, etc.
“Each employee has their own needs. Hence the importance for companies to strive to analyze the feelings of their employees: listen, prepare and develop a plan that suits them. It is only in this way, by actively listening to their needs and desires, that it will be possible to reduce the demotivation of employees and encourage their link with the company, ”concludes Aranguren.