Hello! Irene here, and today I am going to talk about “sunk costs” and how I see the concept in action when it comes to having employees.
A sunk cost is a cost that has already been incurred and cannot be recovered.
I see sunk costs from an economic perspective, as well as the less considered emotional and energetic perspectives.
I mention it here as I see business owner managers hang onto people they know they really should be parting company with because the employment relationship simply isn’t working out for the benefit of the business.
But they hang on and on and on because of the money in salary, training, and benefits and the time and energy they’ve already put into it.
Don’t let the amount of time and money you’ve already spent cloud your judgment here.
Notice if you have anyone that springs to mind when you hear me talk about this and get something done about it sooner rather than later.
Hope this gives you some clarity to take action if you need to.