Employee turn-over has emerged as a challenge for companies of all sizes. Research has found that replacing a lost employee can cost a company as much as twice the employee’s salary.
Beyond the direct financial costs, it can be difficult, if not impossible, to build a strong, functioning team if talent is constantly walking out the door.
With the tight labor market, the risk of losing talented staff has only increased. There is no practical way to completely eliminate staff turnover. However, by understanding your employees and the reasons why they might leave, you can reduce staff turnover.
Let’s go over six reasons good employees quit. As we do so, we will also discuss potential solutions.
1. Bad Relationships Result in a Poisoned Workplace
The employee-employer relationship is essential. Employees will work harder and stay longer if they enjoy working with their bosses.
A bad boss, on the other hand, can cause employees to look for “greener” pastures.
In fact, Gallup has found that:
1 in 2 employees have left a job at some point to get away from a bad boss.
Drama with coworkers can also push people towards the door. Such drama can lead to bad personal relationships, teams that do not function well together, and other problems. These emotional aspects can grind even a hardworking office to a halt.
So are there any solutions?
There is no way to eliminate gossip, politics, and all of the rest. However, it is possible to mitigate drama through clear, honest communication and other measures.
Make sure managers are treating employees with respect, communicating well, and listening to those who work for them.
Providing employees with a way to share feedback and nurturing a trusting environment can go a long ways as well.
2. Yes, Employees WILL Leave for Better Pay
Many people and companies like to pretend that pay is not important. Most of the points in this article likewise deal with non-compensatory factors.
At the end of the day, however, paychecks are a primary concern for many employees. Further, given the tight labor market and aggressive headhunters, many employees will not struggle to find a better paying job. Great employees may even be approached with a better paying opportunity without even looking.
A Robert Half survey found that:
25% of CFO’s report losing an employee to better-paying jobs
Another survey by Aon Hewitt found that:
52% of employees would leave for another similar position if the new job offered better pay
Increasing pay can be a challenge for companies. However, remember that losing an employee may end up costing you more in the long run.
3. Boring Work Results in Bored Workers Who May Experience Wanderlust
When you think of a “better” position, it’s tempting to boil that down to “better paying.” However, a Korn-Kerry survey found that many employees leave to search for a more challenging position.
Quite simply, they were bored.
Gallup has found that only 32% of employees were fully engaged in 2015.
This means that slightly less than one-third of employees were enthusiastic and committed to their work. Even if “not-engaged” and “actively disengaged” employees don’t quit, they’ll be less productive.
If employees are reporting boredom, managers should see if there is a way to delegate more decisions or to otherwise challenge the employee in a positive, nurturing way.
4. A Poor Work-Life Balance Will Wear Employees Out
An increasing number of workers aren’t happy just cashing checks. They want to live their lives to the fullest.
That can be difficult, if not impossible if work-life balance is out of whack. Overworked employees may feel compelled to find opportunities that offer a better balance.
Poor work-life balance can also reduce productivity and increase the risk of burnout. Many employees won’t quit until they have another job in hand. However, a burned out employee might simply walk off the job, unwilling to deal with any more stress.
A study by the Corporate Executive Board found that:
employees at companies that manage work-life balance effectively work 21% harder than those who don’t.
This means it’s important to keep a pulse on your company and to ensure that work and life are being balanced properly. If not you could lose employees and those who stay will be less productive.
5. A Lack of Company Visions Makes It Easy to Lose Focus
The best companies have excellent company visions. They will have goals and a philosophy behind their company and its efforts. This vision should extend beyond producing profits. If anything, it should be deeper.
For example, a hotel might have the vision of “providing the best customer experience possible in an ecology friendly manner.” The vision isn’t just to make money.
Instead, it’s to provide great customer experience and to protect the environment. Customers will recognize and appreciate this, which in turn will lead to profits.
Companies that lack a vision often fail to resonate with both their customers and their employees. A vision can help employees stay driven and focused.Companies that lack a vision often fail to resonate with both their customers and their employees. Click To Tweet
6. Terrible Internal Organization Can Exacerbate Every Problem
Organizing a company is hard work. However, a disorganized company often suffers high staff turn over.
A disorganized company can amplify all of the already mentioned problems. Employees may lose sight of the larger company vision, relationships between managers and their employees may deteriorate, and office politics can erupt into a major problem.
Many large companies have organizational experts on staff. Work with them, listen to their experience. Smaller companies often hire organizational consultants. Smart idea.
However, your own staff can often provide insights and suggestions even if they haven’t been formally trained in organizational management.
Beyond reaching out to organizational experts, it’s important to keep a close eye on your employees and how they feel about your company.
Employees often see and experience problems that management may not even be aware of. By fielding frequent feedback from your employees you will be able to track and address problems.
Wrapping Up With Some Quick Strategies Reduce Employee Turnover
First, treat your employees well. Respect, trust, and appreciation are all factors that people universally enjoy.
Second, listen to your employees. You might think that you are doing something right, but your employees may see it differently.
Make sure that you provide employees with ways to express their frustrations and concerns. By listening to your employees you will be demonstrating respect, trust, and appreciation.
You may not realize that office politics is cropping up, or that people are struggling to find work-life balance. Make sure you monitor your staff closely. By discovering problems as they emerge you can address them quickly and efficiently.
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