Churn rate is defined as a measure of the number of individuals or items moving out of a collective group over a specific period of time. Invaluable asset is defined as an asset without a quantifiable value. So an invaluable employee is an employee that is invaluable…
The ability to develop an understanding of the employees morale at any point in time is measured by the interaction between the senior management team and the employees. Employee churn rate is the gauge of performance on workers welfare depending on the industry. Restaurants and takeaways have very high churn rates due to the nature of their business, as many of their employees leave once they get something better outside or graduate in the case of students. Human capital is one of the biggest asset a company can have as it’s developed overtime and an employee departure is valued as a reduction on the payroll but the reality is that it’s a reduction of the company’s invaluable asset/employee.
All companies are valued by their share price but the employees working in these companies are invaluable, so this means that the value of all the companies in the world are incorrect, when you add the human capital developed along the years. Commonly we say when an employee departs” he was an invaluable asset to the company”. The only reason we say this is that the company or his colleagues has now realized the invaluable value of their colleague or friend without thinking of themselves as being invaluable too. Martin Lipton developed the poison pill to save companies from unwanted takeovers but nothing to date have been developed to save the departure of an invaluable employee. Clauses on employee contracts might try to deter the departure but ultimately there is always a way out of the clause.
I think companies should add invaluable asset identifier to the role of the talent scouts or HR. These invaluable asset identifier or IAI would spot invaluable assets in the companies and monitor their development and progress in the company. These invaluable assets/employees are identified by the following ways;
- Seen as a mentor by colleagues
- Ability to build a personal network to achieve his or her targets.
- In a multicultural environment he or she is able to learn languages
- He or she is a role model
- He or she is an expert
There are different reasons why an invaluable asset/employee would leave a company, but if the IAI was doing his or her job well the departure of the invaluable asset/employee might be avoided, with little effort or a raise causing the company minimal loss. I cannot advise the IAI on the negotiating ways to keep an invaluable employee/asset. But by finding out the reason for leaving I think with common sense, this can be avoided. The list of invaluable employees is not for the public, shareholders or even the employees/ invaluable assets themselves. This list is for only the senior managers or directors, as there are confidentiality issues here. The HR/IAI must have an unbiased, reputable and non-discriminatory personality for this approach to human capital management to work. If the list is exposed then, you have lost the aim of this approach, as the invaluable assets on the list will be marginalized or discriminated against. Also the morale of the employees that are not on the list might be depleted.
Now for employees, find out if you are an invaluable asset/employee or not?
Keeping your name on the invaluable asset list of a company can only be achieved by continuous update in education, knowledge, personality, patience, hard work etc.