Posts Tagged ‘job insurance’

Why are companies not insuring themselves against sudden employee attrition?

October 4, 2010

Unless someone can boast the pleasure of having Mystic Meg as an acquaintance or can interpret what the remnants of their morning cup of tea can reveal, the future will forever be full of twists and turns that not even the most diligent person can be prepared for. What we generally do to make sure we don’t get bitten when something unexpected happens is insure against all of the possible eventualities. Car Insurance, Home Insurance, Pet Insurance and Life Insurance all allow us to have the peace of mind that fate, despite its many attempts, will always be on the losing side.

Whatever it costs we are willing to part with our cash to ensure that nasty things don’t ruin our lives, irrespective of the fact that the nasty thing rarely ever happens anyway! We insure our car year after year, costing us tens of thousands of pounds over the course of a lifetime, but more often than not never make a claim, even refusing to make a claim for smaller dings and scratches so that we don’t jeopardise our No Claims Bonus!

So why in that case do companies not have contingency plans in place for when unforeseen employee attrition happens, which can occur at any time. When you actually think about it most employees nowadays are able to discontinue their working relationship relatively abruptly, immediately leaving the company in question in a hole, having a vacancy to fill with no one on hand to come in to do the job, ultimately costing said company valuable money.

So what happens at the moment? In most cases there will be an immediate scramble trying to negotiate extortionate rates with the local rag for a miniscule advert, which may still not be in the public domain until the following week. And even then it is not guaranteed to generate a response that will be of both the required quality and straight away. Other options include making a call to a recruitment firm or hitting as many job sites as possible. The recruitment agency route will mean them starting the ball rolling trying to source a suitable candidate from their more than likely tired database, once again time consuming and not to mention expensive should one be found that takes the position.

Whilst online job boards are statistically the best place to source potential employees it has to be done in the right way. Advert writing isn’t the most straight forward thing and making sure all the correct information is in along with being attractive to prospective candidates can be difficult at the best of times. Not to mention having to do all of that and squeeze it into a space no larger than a credit card.

I suppose the real question is which company can afford not to put contingency plans in place? We spend our whole lives planning for the future which we have no real control of. Whether it is in our personal or professional lives it is always best to make sure that we can maintain a degree of control over our futures and putting contingency plans in place is paramount for our success to not be damaged by unforeseen circumstances.

If you have any concerns after reading this about what you have in place to deal with staff attrition both expected and unexpected then get in contact with me and I will run through exactly what can be done to ward off this issue. You can call David on 0845 3884145 or email david@m2r.co.uk for a free no obligation discussion.

Come on, you wouldn’t think this hard about inuring your car would you??

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