Way Out Of
As leaders in Sri Lanka, we’ve faced some tough times, and the road ahead might not be any easier. We are tired of hearing how much ‘re-building’ there is still to be done and yet the reality remains.
It is true that today much of our talent is being drawn to opportunities offshore. But it is also true that, as leaders, we have a strategic opportunity to focus on the management teams we have in place and look at motivating and up-skilling them to reach their full potential in the second half. And the good news? This requires a shift in mindset, not in bank balance.
The Size of The Problem
Globally, businesses are losing a staggering “one trillion dollars in productivity” each year, according to the Gallup State of Workplace Report 2023, due to staff disengagement and low empathy in the workplace. Furthermore, nearly 80% of employees worldwide are actively disengaged in their work, despite efforts from companies to pay their way out of the problem. In Sri Lanka, while our part of this loss might be smaller, it could still be costing us up to $1,000,000 an hour in missed opportunities.
The True Cost of Turnover
We know that turnover can be a significant challenge for businesses. It not only takes a toll on the financials but on our overall growth and success within that financial year. We lose valuable experience, reliable winners, innovative thinkers, and effective problem solvers – impacting our ability to thrive. Moreover, this turnover strains client and customer relationships, loyalty, and team morale. So how do we stop it?
Understand The Reality
Our workforce continues to face a multitude of daily challenges that impact their commitment to work, not limited to our local economic and political realities but the broader world they live in. As leaders today, we need to re-evaluate our workplace to meet the holistic needs of our people, beyond just financial benefits, in order to empower them to perform at their best across social, economic, personal, and health realms.
The Return on Holistic Benefits
Effective benefits, such as sustainable initiatives to improve workplace wellbeing and support for employees’ financial planning and work-life balance, can yield great returns. From evaluating employee wellbeing (and no that doesn’t mean free yoga classes but sustainable initiatives to improve workplace wellbeing) to considering staff’s ability to effectively financially plan their future, navigate a promotion of integrate work and family. Recent findings for example, by the Boston Consulting Group, showed that organisations that offer childcare benefits to male and female staff saw returns of up to 425% of their cost. This held true regardless of industry, company size, employee mix, or benefit type. Above-average health insurance policies also led to higher performance, lower absenteeism, and improved output, according to McKinsey. And surprisingly, data shows that most employee departures, 52%+, could have been prevented by better management or improved business policies.
While increasing salaries might fix short-term issues, retaining loyal and motivated employees in the long run in our domestic market will require more than a financial fix. Investing in employee retention strategies that empathise with employee realities and that are centered around meaningful engagement and value alignment, is crucial. Without these in place, your competitors will lure away your talent before you revise their pay check.
