High employee turnover rates never mean well for a company. It’s a glaring sign that something could be wrong with some aspects in your business.
Whether or not you have been experiencing higher turnover rates recently, it’s helpful for your company to have a good grasp of why employees decide to resign from their posts. An effective HR manager or recruitment agency will be able to detect areas of improvement and implement ways to help your business positively, such as fixing plot holes in your internal processes.
With the outpouring of job opportunities globally and remotely, job seekers are now getting pickier when it comes to their choice of employment. Below are the vital statistics you should know regarding why your employee hands in their termination notice, as well as tips for employee retention.
Reasons Why Employees Leave
Lack of growth
A considerable portion of the workforce wants variety and multiple opportunities thrown at them in their jobs. Once they feel stagnant, they become restless and look for other companies who can satiate their thirst for growth.
Feelings of under-appreciation
Employees like receiving credit and validation. Not commending them for a job well done makes them feel invisible and unwanted. They will likely look for recognition elsewhere.
Have you ever heard of the phrase, “People quit their bosses, not their jobs.”? Strained relationships with their managers are one of the top reasons why employees leave a company.
General work environment
No one wants to work in a glum climate where people are always unmotivated, hostile, or riddled with drama. This can scare off a lot of employees who want to keep things professional and productive.
Flexibility or scheduling
Remote working opportunities and flexible hours are now great motivators for job seekers. They value work-life balance and have other goals to work on besides their 9-5.
Salary and benefits
People work an average of eight hours a day to pay the bills. Finding a job that supports their needs is naturally a huge factor for them. They often look for benefits that can lessen financial burdens as well (health insurance, mobile phone allowance, etc.).
Despite their best efforts on the job, the employee may feel out of place because he or she can’t relate to the organization’s work culture. This could be due to personality, world views, or other principles that clash with the other people in the company.
Some employees may feel let down during their stay at a company because it wasn’t what they expected it to be like (e.g., modified job description). This happens when the company doesn’t hire to fill a specific position and instead hires for another set of hands.
Little to no coaching
Not giving employees the right tools to do their work will throw them off from finishing their tasks. Teach them how things work in your business before leaving them to forge a path on their own.
If the company frequently changes goals and objectives, it may confuse the employees. A shift in the company’s core values may trigger doubt in any staff member, whether tenured or new.
How to Decrease Your Employee Turnover Rate
1. Find the right candidate
It all starts here. Make sure your new hire has the potential to stay with you long-term.
2. Improve the onboarding process
Improper onboarding can turn off your new hire. According to Click Boarding, 20% of resignations happen in the first 45 days.
3. Train your managers
There should be a balance between great leadership and being approachable.
4. Train your employees
Give them options to learn new things that may not be directly under their scope of work.
5. Show them opportunities for growth
Show them the goals that they need to achieve to get that salary raise.
6. Promote work-life balance
Create flexible work conditions, so your employees don’t feel too restricted to work.
7. Collect and address feedback
Periodic evaluations are a good way to find out what you could be improving in your business. Do the corresponding actions to better the situation.
8. Learn from mistakes
Conduct meaningful exit interviews with employees who leave. They are the best source of information for what internal processes you can shift.
9. Invest in enrichment activities
Work can sometimes involve play. Throw success parties, holiday gatherings, and more to boost morale and show that you value the mental well-being of your co-workers as well.
10. Maintain a friendly atmosphere
Having a friend at work helps! Surveys show that employees who don’t have work friends are more likely to accept a job offer elsewhere vs. those who don’t. Strive to have a collaborative environment across all levels.
How Does High Employee Turnover Affect Your Company?
Besides the obstacles you will encounter during the recruitment process and the costs it will incur to find a replacement, high employee turnover can disrupt many other areas in your business.
These factors could easily create a domino effect and trigger more people to jump ship. Practice quick and effective replacement processes in recruitment to avoid creating unwanted drama and stress in the work atmosphere. Remember: your people are your company’s best assets.
In a perfect world, your valued staff will never leave your company. The reality is, that won’t always be the case. While some do stay, the majority of people are steadily searching for personal and professional growth, and they will always look for an environment that supports them in every stage of their career.
The tactics above will surely help you nurture and keep some of your best talents around. Should the time come that they need to part, it’s fulfilling to know that your employees maximized their stay and appreciated their time with your company.
If your talents leave with good things to say about you, you know you’re doing your best when it comes to creating a productive and positive work environment. Always keep an ear out for any suggestions your co-workers have and take time to patch your weaknesses. You’ll find that it will be easier to retain people in the long run.