Host does a great job at cataloging employee costs. You can develop compensation items to track any expenses related to employees from anything like salary and medical costs to car allowances to one-time bonus payments to special stipends based on half of an employee’s 401k contributions. This is all tracked at the employee level within your hierarchical organization, across departments, companies, and even projects if that is the way your organization slices data. It’s all pre-built and requires a few conversations and a few hours of configuration. All of this setup is in effort to identify, understand, and ultimately plan for and control costs associated with employees. Well what about those costs? Is there any way to bring them down other than slicing and dicing and cutting and reporting upon them. Apparently, YES!
In a recent webinar related to performance, a common theme was posited explaining how you can reduce overall employee costs through both increased productivity and reduced overall operating expenses related to employees. The concept was simple: Coaching. Without getting into all of the benefits and nuances of what it means to coach your employees, we should look at some of the statistics reported relating to organizations that take coaching seriously regardless of their size.
Thanks to the Aberdeen Group, Towers Watson, and Bersin and Associates, we have the following analyses paraphrased for coaching enabled organizations:
- “They achieve an 11% higher better team sales quota attainment.”
- “They achieve a 14% shorter average sales cycle.”
- “They reduce turnover by 3%.”
- “72% of coached employees perceive their management and leaders as effective.”
- “Coaching, initiated from top levels of the organization increases business results by 21%.”
- “Managers, effectively prepared to coach increase business results by 130%.”
Some food for thought as your organization looks at ways to deal with organizational costs beyond the budget model. After all, in most organizations salaries and fringe are the number one source of overhead. Might as well get as much productivity out of it as possible.
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