What costs can lack of substitution generate?
- Mateusz Bohonos, Product Manager One Step Cloud
We are aware of how much it costs to recruit the wrong person. We are also aware that leaving an employee brings considerable costs to the company. In response to this, the management team tries to create a duty of substitution in teams. But does the substitution end at the employee level?
According to the research conducted independently
by Sedlak & Sedlak and PwC total cost
to replace an outgoing employee is
equivalent to his annual salary
In reference to the survey, many companies pay special attention to the recruitment of employees. To this should be added the profile of the company and take into account the difficulty of employing a specialist in a domain. The IT industry is currently leading the way, where salaries of senior specialists cost more than a dozen or even tens of thousands of PLN per month. Multiplied by 12 months gives quite a big sum, which is much bigger than the one calculated in the report.
Companies compete not to lose their employees by offering them various types of benefits that do not always compensate for the effort of work. We offer more and more rewards to those who manage our company, focusing on ensuring that the person does not leave us. Using such methods we become more and more dependent on a certain employee.
Modern companies, aware of the difficulties of maintaining an employee, implement a different model of work. A model of job substitution. This is important for several reasons:
- These persons exchange competences during the project implementation and as a result, there is a synergy effect (2+2>4)
- During the vacation of one of the people, the whole project is continued
- In the event of a random situation or the departure of an employee, we do not stay helpless
Expenditure on job substitution entails educational costs and job duplication, but by comparing the costs or lost revenue generated by an employee, we can easily re-calculate whether or not it is worth it. Often, after a calculation, we see that it is worthwhile to incur the cost of further education of another employee in a domain, so the realization of projects or sale of products is continuous and not threatened.
An alternative method for substitution is process outsourcing. However, we are not always able to separate part of the process from the company, and sometimes it is not profitable for us. Often, however, it is also our know-how that we do not want to reveal to external companies for fear of remaining competitive.
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When analyzing employee substitution in companies, it is worth asking yourself the following questions about the independence and continuity of our IT:
Am I prepared for random accidents of
the administrative operator who manages my
infrastructure?
It is worth noting that not only people should be substituted. In the era of digitalization, most companies rely on computers and data stored by them. The production uses connections with servers so that the line can operate continuously, the vendors keep their contact history in CRMs, accounting and human resources are keeping all accounting evidence in systems specially dedicated for them that require the availability of servers. So it is worth asking yourself a question:
Am I ready for a failure of
my server, which is used by the whole
company?
A common way to do this is to create a data backup, but we will not get anything after the backup if our server fails. Waiting for the time when someone can deliver it to us as a matter of urgency generates a standstill of the whole company for a few or several days! Not only are we unable to produce, but we are also unable to sell and book all the work. Then we incur the cost of remuneration of all employees who are not able to work for half a month. Everyone knows well how much % of the company’s costs are salaries. It is worth asking ourselves a question:
Are we ready to bear the cost of 50%
monthly remuneration of the entire company
due to lack of security for random situations in
IT infrastructure?
Intratel comes with a solution the One Step Cloud product, where we are able to keep alternative servers on hold, or completely move to the cloud, using the support of experts who are always available and its infrastructure, which has underlying updates, security, redundancy. There are as many solutions as companies need, each one tailored to the recipient. Try use cloud solutions to protect yourself against possible random lack of staff or infrastructure failure.
