How to Improve EBITDA by Accelerating Employee Performance

How to increase your savings by accelerating employee performance

The average cost of employee turnover is over $235,000 per high-performing employee per year.

And one of the costs that really creeps up on people is the time it takes to get somebody up to 100% productivity.

Oftentimes, it takes anywhere from eight months to two years to get them up to 100% performance.

And this is illustrated well by the Bersin by Deloitte table below.

There is the value that the employee contributes. We've got the time, in other words, their tenure in the organization.

The key is to understand the investment zone. And in the investment zone, this is where you're investing more dollars and time in the employee than they're actually producing and the key is to get them out of that investment zone as soon as possible.

To where they're in the return zone as soon as possible, which means you're putting dollars still into the employee training but they're producing more to higher level beyond what you're investing.

So you’ve got two different options.

Number one decrease the investment upfront. So spread that investment out over the life cycle of the employee. Don't put it all in upfront, but do it more intermittently to try to decrease that cost and get them into the return zone with a lower investment.

The other way to do it is to put more higher quality training and coaching and development upfront. And make sure that you've calculated the return on investment. A lot of leaders miss that point.

Calculate your ROI on that additional training and coaching and performance management to get them into the return zone at a faster level to decrease that overall employee ramp-up period.

To calculate your own cost of turnover, including this, for your own organization. Go to https://warfortheemployeemind.com/turnover/ and download the Excel spreadsheet. You just fill in a couple costs for your organization and it actually does the calculation for you.