Page 94 - The Green Building Bottom Line The Real Cost of Sustainable Building

HR PRACTICES AND PROCESSES THAT MAKE SUSTAINABLE VALUES STICK 73

10
OT
4 4 5 6 7 8 9 10 TOTALSALS
471,300
538,800
21,300
21,300
21,300 21,300 471,300 538,800 548,925 550,444 550,672 2,766,640
548,925
550,444
2,766,640
550,672
790,000
79,000
79,000
79,000
79,000
79,000
79,000
79,000 79,000 79,000 79,000 79,000 79,000 79,000 790,000
79,000
79,000
79,000
79,000
79,000
79,000
79,000
790,000
79,000 79,000 79,000 79,000 79,000 79,000 79,000 790,000
79,000
629,672
100,300
629,444
100,300
550,300
617,800
3,556,640
627,925
100,300 100,300 550,300 617,800 627,925 629,444 629,672 3,556,640
(138,866)
10,605)
(165,335)
(103,490)
(128,125)
(151,190)
(1,386,037)
18,765)
(103,490) (1 (110,605) (118,765) (128,125) (138,866) (151,190) (165,335) (1,386,037)
(108,425)
(124,688)
(143,392)
(71,291)
(94,282)
(71,291) (81,985) (94,282) (108,425) (124,688) (143,392) (164,900) (951,737)
(81,985)
(164,900)
(951,737)
(10,725)
(10,725)
(10,725)
(10,725)
(10,725)
(10,725) (10,725) (10,725) (10,725) (10,725) (10,725) (10,725) (107,250)
(10,725)
(10,725)
(107,250)
(154,117)
(82,016) (92,710) (105,007) (119,150) (135,413) (154,1 17) (175,625) (1,058,987)
(135,413)
(1,058,987)
19,150)
(92,710)
(175,625)
(105,007)
(82,016)
(305,307)
(223,772)
(274,279)
(2,445,024)
(185,506)
(247,275)
(185,506) (203,315) (223,772) (247,275) (274,279) (305,307) (340,960) (2,445,024)
(203,315)
(340,960)
288,711
324,137
(85,206) (103,015) 326,528 370,525 353,646 324,137 288,71
370,525
326,528
(103,015)
(85,206)
353,646
0.513
0.424
0.621
0.683 0.621 0.564 0.513 0.467 0.424 0.3860.386 0
0.564
0.683
0.467
1,31
(63,964)
164,978
(58,197)
184,316
190,138
(58,197) (63,964) 184,316 190,138 164,978 137,466 111,311 0
137,466
likely to be much more volatile. In the early years of a major transition such as
Melaver, Inc. underwent, there is a likelihood of losing a few good people early on
who are simply not aligned with the direction of the company (hence the loss of two
people from Melaver’s management team). However, in later years, the retention rate
becomes extraordinarily strong, well beyond what my analysis is projecting.
TABLE 2.5 FINANCIAL BENEFIT OF RETAINING GOOD MANAGEMENT
COST PER STANDARD SMALL ANNUAL
ITEM PERSON COMPANY GREEN, INC. SAVINGS
Turnover of good 8 12
personnel (years)
Annual loss of good 1.25 0.8333
personnel per year
Cost of recruitment $ 7,000 $ 8,750 $ 5,833 $ 2,917
Headhunting $ 23,850 $ 29,813 $ 19,875 $ 9,938
Cost premium for $159,000 $198,750 $132,500 $66,250
losing a good worker
Total $79,105