As the Covid-19 Pandemic drags on and employees continue to work from home for months on end, more senior-level leadership is seeing the opportunity to bail on their lease space and cut costs. They see an opportunity to “reduce our footprint.” Soon many will become “invisible” in their communities with virtually no physical facilities. The impression this employee retention trainer gets is that it’s all about “cost.” This is the same mentality that prompted many manufacturers to focus so much on outsourcing as a way to cut costs in the past 20 years. The result, we looked at the cost per part and forgot about the cost of shutting down a production line when the parts that came from overseas did meet tolerance or were late coming over. We only looked at the cost of the part.
The same thing is playing out with many non-manufacturers now. They see a great opportunity to cut costs by eliminating rent because people are working virtually now. They aren’t looking at what having everything virtual is doing to their culture. People are disconnected, less engaged and there is a lack of a sense of community. Many are not running their engagement surveys, so they have no clue as to what their people are thinking. What this employee recruitment expert is hearing is that people want to go back to a physical space…at least several days a week. A few people would like to remain totally virtual but what this employee retention speaker is hearing is that people miss their co-workers and Zoom doesn’t fulfill that need for community. It doesn’t connect people like chatting in the lunchroom or going out for a drink with your co-workers, or simply saying “hi” to someone in the hall as you walk to the restroom.
We may be saving on rent but if we start to lose people because they want to be a part of a community and we’ve decided to go virtual to save on rent, we are going to see a spike in employee turnover. The smart organizations are doing their engagement surveys, having their leaders talk to their people, and getting direct feedback on what their people are thinking about working virtually. They are then factoring that information into decisions about cutting rent or impacting culture. The “total” cost needs to be looked at. Those organizations that are going through this evaluation process need to learn from the lessons manufacturers learned the hard way about outsourcing to save money on a part. It’s time to weigh the cost of rent vs. the cost of culture!
Remember…Give Your Employees C.R.A.P.® (Caring, Respect, Appreciation and Praise) Why? Because C.R.A.P. Works!
Are you concerned with the level of employee turnover in your organization? If so, call me at 414-305-9626 or email me at firstname.lastname@example.org to find out how to Give Your Employees C.R.A.P.®, hear more about the C.R.A.P. philosophy, AND find out how this philosophy can reduce employee turnover by 40-80%.