When the topic of risk is addressed most of our thoughts go towards insurance however there are significant risks to your business that cannot be insured. One of those is a lack of growth. A lack of growth can be a slow death spiral that can be irreversible.
First let’s define growth. The obvious mode of growth is an increase in sales however a second type of growth is also desirable—growth and maturity in the operations. So why is a lack of either type of growth a risk to your company? This is because of your employees.
As we examine in organizational structure there are three types of employees: Climbers, Campers and Quitters. Climbers consist of about 10-20% of your employees but they produce 80% of your profit. Campers consist of about 70-90% of your employees but they only produce 30% of your profit. Quitters consist of 5-15% of your employees but they actually cost you 10% of your profit. Climbers receive their personal satisfaction through their work as opposed to Campers and Quitters who respond more to outside of work activities. Obviously it is paramount that you retain and challenge your Climbers. Turnover should be focused in the Quitter/Lower Level Camper pack and everything possible should be done to prevent turnover of Climbers.
Climbers need a ladder. Climbers need to see that there is “somewhere to go” in your company. Failing to see that they will leave you and often times for less money if they see a more challenging opportunity elsewhere. They need recognition. An entrepreneurial Climber may even become your competition if you don’t provide that outlet within your company. Turnover amongst Climbers hits your company hard. They are hard to find and hard to keep and it is very difficult if not impossible to teach or train that trait.