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Juicy
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Juicy
@JLR_sara
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Katılım Kasım 2013
829 Takip Edilen906 Takipçiler
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Boss complained that the company couldn't afford to give salary raises.
So they resorted to hiring and firing aggressively to cut costs.
This only made the matter worse.
He sought advise
"What's the average raise request you've denied?" I asked.
Boss : "About 15-20%."
"And what are you paying new hires?"
Boss : "Market rate. Usually 30% more than internal folks."
"So you won't pay someone 15% more to stay,
but you'll pay someone else 30% more to start?"
He shifted. "That's different."
"What about Sarah?" I asked.
Boss : "She asked for 18K more.
We said no. She left.
You just hired her replacement."
Boss : "Yeah. Took three months to fill."
"What did you pay the replacement?"
Boss : "85K."
Sarah was making 62K. Asked for 80K.
"Right."
"So you saved 18K by saying no,
then spent 23K more to get someone new.
Plus signing bonus?"
"10K."
"What about lost productivity while they ramp up?"
"Maybe six months to get to Sarah's level."
"That's another 30K in lost output.
Plus recruiting costs?"
He opened a spreadsheet.
"Recruiter was 17K. Training about 15K."
I wrote on his whiteboard:
- Salary increase: 33K
- Signing bonus: 10K
- Lost productivity: 30K
- Recruiter fee: 17K
- Training costs: 15K
Total: 105K
"You spent 105K to avoid paying 18K."
He stared at the board.
"How many Sarahs did you lose this year?"
"Twelve."
"So you burned 1.2 million
to save maybe 200K in raises."
A few months later, he called.
"I just approved every raise request in the queue."
"All of them?"
"Cost me 340K.
Would have cost me 2 million in replacements."
"How'd your team react?"
"Shocked. Then productive.
We're hitting numbers we haven't seen in years."
Here's the truth about retention economics:
Companies will spend a dollar to save a dime.
Then spend ten dollars to fix what broke.
We treat current employees like costs
and new employees like investments.
But retention isn't an expense.
It's the highest ROI investment you'll ever make.
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We show love to Debbie Thomas, who made history on this day in 1986, becoming the first Black woman to win the US National figure skating tournament (women’s singles).
Debbie accomplished this while being a Pre-Med student at Stanford University. She later became an Orthopedic Surgeon, but stopped practicing medicine in the mid 2010s.
#BlackHistoryMonth #BlackHistoryFact


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Exactly. I don't want a side gig, I don't wanna hustle, I don't want to start a business. My one normal job should be enough.
ً@itsnwts
I actually would prefer things just become cheaper instead of everyone needing to make $100,000 to live a decent life.
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