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If an employee die, or resign.
Well, it depends on two:
- Employee position value.
- Amount of work load he/ she is handling.
In case your employee is occupying a core pattern of jobs, you have to be ready to face some obstacles after that employee's departure.
Therefore, we "the HR decision makers" have to be ready in advance for the expected troubles might occur according to that; ex, Succession plans, delegation plans, second row training programs ...etc
So, easy replaceable employee is not a risk, while the rare, profit maker and highly technical one is a predicted troubles.
In all ways, make yourself ready.
I believe that keeping your best employees happy and engaged is the best risk prevention. Get compensation right the best you can all of the time, which means it needs to be at market for average employees and at least a step above for the great ones. An employee with high engagement and work satisfaction would be at a negligible risk of leaving his/ her current company.
However, employees do leave for reasons beyond the control of an employer. In such cases, you can prevent adverse effects on your company by asking the departing employee to do the following:
1) Request that they not call your clients;
2) Communicate honestly – and mean it – that by leaving they are not burning any bridges and if they seek another opportunity with your company they will be treated respectfully; and
3) Offer to mentor them if they are going to another industry with which you are familiar. In this manner, you will earn the respect of those who remain as they see that it is not the end of the world or the relationships developed if they choose to leave.
The risk of potential human resources: The most important risks arising from the movement of people is the institution: 1. own risk culture institution and not understood by the people through situations that Highlight them and which constitute sometimes counterproductive behavior and bad feedback. 2. behavioral risk individuals through non-legislator things which are contrary to the ethics Work (cheating, theft, collusion, exploiting personal things). 3. The risk of not putting the right person the right place. 4. passive leakage of staff incompetent Exchange. 5. Non-compliance by individuals to applicable laws. 6. staff turnover (affects the work / direct impact on the productivity of the type of team staff New, measurement is to gather information and data and after the analysis. 7. change in information technology: the introduction of any form of technology in the production of certain Process or simply edit the information technology environment Alhalahattalb a number of changes in the Staff skills, workflow, policies and procedures, and a host of other changes. 8. resignation of staff. 9. failure to provide the necessary staff
Yes and I agree with Mr. Carsten.................................
A clear YES is my first answer. Loosing an experienced, well educated and well conected employee can become a substantial risk. It can lead to direct cost, to less efficient handling of processes and even loss of customers.
However, to measure it is not easy. I strongly believe in scenario Analysis. That technique means first to identify the places, where a loss could be most substantial and than developping a scenario, what would happen if this person leaves.
Some examples:
Given recruitment is rather easy and fast, the cost will be the direct cost of recruitment (ad, agency, travel) plus a sum for the time it takes even a skilled employee to adapt to the new company. As a Guideline, guess ist about 1 year wage in sum more or less.
Given it is a sales position, you may calculate a certain percentage of customers lost because of the worse Service provided or a personal relationship (e.g. in trust/fund management, some customers have the closer relationship to the person as to the Company and go with the employee.)
Loosing a good project manager may delay the project and lead to higher cost.
As you see, this is very dependent on the situation and takes some effort. Still it is worth the effort. I remember a situation back from the early days of energy trading, when a team of 3 was managing the complete wholesale market process from procument of coal and gas to sale of power on the exchanges for an integrated utility. Assuming a competitor would lure them away...
What can you do about it? Though efficiency is nice, in some areas it's vital to have knowledge backed up and maybe the one employee more than absolutely necessary is a good "insurance" against problems in critical areas. Another measure is not to allow too many of (key) personal in one plane. In all day Business, encourage knowledge sharing and accessible documentation helping a replacement to take over in case of need.
I agree the above mentioned answer by Mr.A. Rehman , and can add that such risk one of uninsured risks and no insurance coverage guarantee that , except in the consequential loss as this risk may be implicitly included within the loss of profit insurance coverage .
Best wishes
Yes. Loosing your asset is loss and no doubt company put effort and pay expenses to train a worker and polish his/her abilities from raw situation. It can be measured by turn over rate. Higher the turn over higher the risk.
Well i agree with the experts opinion.
