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Friday, January 15, 2010

Employees are a Risky Investment

Let’s say I am the Projects Manager for systems development with a medium sized corporation. Our work has been expanding and I need several more programmer analysts in the next couple of months.


I am very apprehensive about this. If I make the wrong decisions about whom I hire, it could be a very costly proposition.


Employees are my most costly and complex assets. Why?


Salary, for sure… but help me with this - what are some of your expectations?
Medical coverage
training
educational reimbursement
career development
savings plan
vacation
stock options
bonus
work space
company car
phone
travel expenses
pension
relocation
... and salary.


Also...
challenge
opportunity for advancement
quality of work life
jobs for spouses
parking spaces
paid time off
child-care centers
employee associations
jogging tracks
flextime


Also… problems
alcoholism
drugs
marital strife
If output does not offset the cost of these items, the employee is contributing to a loss. Employees are investments that must provide a reasonable return.


As a job candidate you must prove that you offer the potential of a substantial ROI (return on investment).


RECENT COLLEGE GRADUATES AND PEOPLE GOING THROUGH A CAREER CHANGE ARE ESPECIALLY HIGH-RISK INVESTMENTS.


WHY?
they are "unknowns"
they often need extensive training


So companies are going to be very careful in:
Selection
evaluation
comprehensive interviewing
... because they need to closely analyze the potential investment.


So YOU must be totally prepared!

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