Managing your business workforce is key to survival

Managing your business workforce is key to survival Managing your business workforce is key to survivalPosted October 13, 2011, by Josie Chun While Australia may have emerged from the global financial crisis in much better shape than many other countries, the economic slowdown has still forced many businesses to take a good hard look at themselves how they operate, their business models, and how their employees perform. Depending on the industry, a business workforce is often its major cost as well as its main asset. The contribution of people is the largest driver of organisational wertzuwachs, but when times are tight, cutting staff seems like an obvious way to cut costs. However, companies are learning that it can pay to think about the long-term consequences of such measures. Research shows that companies that downsize by mora than 10 per cent typically experience subsequent voluntary turnover rates of 50 per cent or greater of surviving employees in the following year, compar ed to companies that dont downsize, according to the Australian Psychological Societys College of Organisational Psychologists (COP). The cost of staff turnover can be substantial as much as 2.5 to 10 times the salary of the job in question. Many of these costs are indirect and not immediately measurable, but they nonetheless cut into a business bottom line. Retention therefore represents one of the highest returns on investment for any company, and developing a workforce strategy and associated strategic plan to help retain your most valuable asset your employees can be a worthwhile exercise. Four key steps to developing a workforce strategy According to the COP, these are the key steps to ensure you maintain and retain an effective workforce 1. Identify the critical and core capabilities of your organisation. 2. Assess the importance of various roles to business outcomes, including the possible outsourcing of some roles. 3. Determine HR policies and practices according t o role importance, including employment value propositions and levels of investment in those roles. 4. Link these HR policies to the three key ways that organisations can enhance human capital acquisition (recruitment and selection), utilisation/engagement and retention (including remuneration and benefits, performance management, etc), and development.Management ResourcesOperations manager sample resumeOperations manager sample cover letterCareer Insider StoriesArsalan Ali - Woolworths Trainee ManagerBelinda Lyone - COS General ManagerJustin Hillberg - General Manager at SurfStitchInterested in becoming a?Human Resources OfficerGeneral ManagerBusiness ManagerAccountantOffice AdministratorPopular Career Searchesgovernment funded courses in small business managementdiploma frontline managementhow to become a body corporate manager in australiafacilities management coursesmaintenance management trainingManagement CoursesBachelor of Construction ManagementEnquire Online Enquire Onlin eAdvanced Diploma of Leadership and ManagementEnquire Online Enquire OnlineBachelor of Applied Business (Management)Enquire Online Enquire OnlineGraduate Certificate in Business AdministrationEnquire Online Enquire OnlineJosie ChunRelated ArticlesBrowse moreCAREER ADVICENew skillsSoft Skills Are The New BlackYour degree or technical experience is only part of the puzzle in building a stellar career. Soft skills are the intangible qualities that help you communicate and work with your colleagues, teammates and clients effectively. Here are 8 of the best soft skills for your career.Career progressionPay/Salary10 High-Paying Jobs You Wont Need A Degree ForDidnt go to uni? Dont have a degree? Dont let that hold you back. Vivien takes a closer look at 10 career paths that will have you swimming in dough, not drowning in HECS debt.Career changeCareer progressionBuzzwords change managementChange management might be one of the scarier bits of jargon out there, but rather than running in the opposite direction when you hear it, arm yourself with the right attitude. After all, change really is the only constant.