It is common for people to join and depart from firms. There are several reasons why someone might leave your company. Some of the reasons are inevitable, therefore you shouldn’t worry about them. However, you have an issue if your employees are leaving because they are unhappy at work, or if you are regularly terminating underperforming staff.
Employee turnover is one of the most serious concerns employers confront in today's competitive world. Employee turnover costs firms over $600 billion each year, according to the Work Institute's 2019 Retention Report. They anticipate that replacing each individual will cost up to 33% of their yearly income.
Voluntary employee turnover is expected to hit almost 30% by 2023. As a result, it's more crucial than ever for organisations of all sizes to have a solid employee retention strategy.
“We now have more job opportunities than candidates to fill them, implying that our labor shortages will worsen.” — Johnny C. Taylor Jr. SHRM president and CEO
Naturally, some employees will leave. Retirement, relocation, and leaving for higher education, for instance, cannot be prevented. However, if you want to avoid terrible consequences, you must keep track of employee turnover and understand why people leave.
You may, however, keep an eye out for subtle signals indicating that your employee is dissatisfied with their current position. According to research, there are key behaviors and signs to look out for to avoid employee turnover.
We've outlined the seven most common causes of excessive employee turnover, as well as what you can do to prevent it.
1. Employees Are Worked To The Bone
In simple words, putting too much work on your employees' shoulders isn't motivating. When employees are overburdened, they are more likely to experience exhaustion and burnout.
According to a CareerBuilder survey, three out of five employees are dissatisfied with their present job. Overworked and burned-out workers will normally leave you for organisations that recognize the value of work-life balance.
How To Fix It?
Take active measures to help reduce workplace stress and attrition. Make sure that work is spread equally within your organisation. If you're unsure whether or not your staff is overworked, the best method to find out is to approach them.
Use employee pulse surveys to see if your employees believe they are responsible for too much work every week. If the majority of your team’s response indicates overworking, it may be time to hire extra people—or at the very least, hire freelancers.
2. Team Members Are Treated Differently
When the employer's favored employees are treated differently from the rest of the workforce, it's just a matter of time until the rest of the workforce becomes enraged. You can't expect to get away with allowing one person to set their flexible schedule if nobody is allowed to do so.
These disparities can extend beyond favoritism, especially when unconscious biases are present. They come in a variety of shapes and sizes, and they can unknowingly affect how we view and treat others from various backgrounds or genders. These tendencies, if left unaddressed, can lead to favoritism and even discrimination.
How To Fix It?
Make treating all of your staff the same way a key priority. Playing favorites isn't a good idea. Examine your present guidelines to make sure they are fair, and think about how your actions may be perceived adversely by your staff.
You can't, for instance, allow one or two people to work from home while asking everybody else to show up at the office if your organisation doesn't have a remote working culture. It's a surefire way to upset your employees.
3. Employees Want Better Benefits
Who doesn't wish to increase their earnings? If your company pays low salaries and is hesitant to give raises, your employees are likely to be on the lookout for better opportunities.
A good wage, on the other hand, may not be enough to keep your employees from quitting.
Employees are also looking for greater benefits, which is a leading cause of employee turnover. According to an Aflac survey, nearly one-fourth of workers who are likely to look for new jobs believe that employee benefits reflect their employer's concern for them.
How To Fix It?
Because replacing an employee is expensive, you're better off providing your employees frequent raises and upgrading the benefits you provide. The perks you provide indicate how much you respect your employees, from standard ones like flexible work schedules to non-traditional ones like health insurance and loan approvals.
You might also discover that wage transparency—the practice of letting every employee know how much the rest of the team earns—helps to keep staff happy.
4. Company Culture Is Toxic
Employee satisfaction is highly linked to workplace culture. Employees who enjoy their workplace culture are happier and more efficient at what they do. They are unhappy and unproductive when they despise the business culture.
Everything from employee engagement to employee satisfaction is influenced by company culture. Employees who do not fit well into their company's culture are less inclined to stay with their current organization.
How To Fix It?
Does your workforce appear to be content? Is it possible that they're just going with the flow? Take aggressive steps to improve your workplace culture. You can use employee engagement software or pulse surveys to obtain feedback from your staff as a simple first step.
5. Employees Hate Their Bosses
If you observe that more and more of your employees working under a particular manager are leaving than others, it's possible that your organisation isn't to blame. It's possibly because the boss is terrible. People leave their employers, not their companies.
Two of the most important characteristics that determine how your employees feel about their employers are faith and honesty. According to the Harvard Business Review, over 50% of employees don't have much faith in their superiors. This can have an influence on how well your staff is appreciated and has a major impact on employee retention.
How To Fix It?
To begin, do your homework and ensure that you hire the right managers in the first place. You should support management training efforts in the same way that you support employee education and training. Lastly, keep an eye on them to ensure that they are effectively managing their teams.
6. There Aren’t Enough Career Development Opportunities
Employees aspire to advance in their careers. They desire opportunities to progress in their careers rather than simply churning out tasks for the sake of their employer's bottom line. Don't be surprised if your employees leave if you don't provide them with prospects for growth.
How To Fix It?
If you want to boost employee loyalty, you must invest in your workforce. According to a recent LinkedIn survey on workplace learning, 94% of employees would continue working with a company longer if they focused on their professional development.
Show that you care about your employees' careers by providing opportunities for growth. Organizing a mentoring program is a great way to get started. Encourage your team to attend industry-related seminars. Invest in education and training, and encourage your staff to pursue their professional goals by discussing them frequently during one-on-one sessions.
7. Employees Aren’t Recognized For Their Hard Work
You can't possibly expect your staff to go above and beyond on a daily basis if they feel undervalued. It's no shock that not getting regular appreciation is one of the major reasons why employees quit a firm, with only 1 in 3 workers claiming that they receive it on a routine basis.
This is particularly true for females. In most professions, women reported receiving less recognition than males when they accomplish excellent work. This has an impact on employee retention as well. It can also result in a less diversified workforce.
How To Fix It?
Enhance your employee recognition program by expressing genuine and heartfelt gratitude. Allow and encourage your team to acknowledge each other’s efforts so that everyone is committed to the endeavor.
Peer-to-peer recognition is a simple technique to ensure that employees are appreciated by their peers, making them feel valued. According to a study, peer-to-peer recognition is 35.7 percent more likely than manager-only recognition to have a favorable impact on financial outcomes.
Summing It Up!
Reducing turnover isn't an impossible challenge. Once the firm has a data-driven understanding of turnover patterns and can build solutions directed at the specific concerns that are driving top talent out the door, it can notice a lot of difference in retention.