Leadership in the Age of Corporate Governance

Many companies say their tight budgets prevent them from sending their managers to any type of leadership training. Perhaps they've never calculated the cost of replacing employees who leave because their managers were ineffective.

There are immediate costs when employees resign. Many companies pay departing employees for accrued vacation and sick time. Some companies ask employees who give two-week notices to leave immediately, yet pay them for the extra time. There are costs for continued benefits like COBRA. And there are the internal costs of processing the termination, everything from deleting employees from the payroll system, to conducting an exit interview. To cover open positions, companies might need to pay remaining employees overtime or hire temporary workers. If not, productivity might suffer, deadlines might come and go, and morale might fall.

The costs of hiring new employees are even greater. There are recruiting costs for advertising or fees paid to an employment agency. There are expenses associated with interviewing applicants, including interviewer time, reimbursing candidates for travel outlays, and contacting personal references. Once companies identify qualified replacements, they must pay for criminal background checks, psychological assessments, and credit inquiries. Finalists must undergo costly medical exams and drug testing. For the chosen, there might be specially negotiated perks, like sign-on bonuses or relocation expenses. And how do you measure the cost of lost knowledge, customer good will, or chain reaction resignations? How do you predict the price of educating new employees and integrating them into the organizational culture?

Question is: can you afford not to train your leaders?

The best way to reach me is by email, at george.brymer@allsquareinc.com

Be sure to visit www.allsquareinc.com

I think employees spend too much time wondering. Some question whether they have job security. Some doubt whether they'll receive a coveted raise or promotion. Some will worry when a manager's behavior flies in the face of the company mission statement. Employees can trust their leaders, remain loyal to their organizations, and do their jobs effectively only when their minds are free of wonder. Therefore, my ultimate goal is to help leaders put an end to their employees' needless wondering.