You could be one of those people that absolutely loves change, the kind of person that thrives off it and doesn’t get phased by it in the slightest.
The kind of person who is able to find a solution no matter how sudden change arrives. But no matter how true this rings, we can’t escape the fact that change can be extremely costly for your business, especially when that change alludes to high employee turnover.
On average, the cost of finding a new employee is five times higher than the cost of retaining a current employee.
That is hugely substantial, and something that can drastically attack your bottom line in the most direct manner imaginable.
There are the costs of being understaffed, of hiring recruiters, of marketing your role, or readministering work, the resources spent on interviewing potential candidates and the costs of training the chosen candidate, and that is by no means an exhaustive list.
That is why it is so important that you are able to identify the reasons why your employees leave so often, what motivates them to offer their services elsewhere and what you can do to amend this to ensure your retention strategy is more effective.
As such, we have come up with a list of common reasons why many top employees decide to resign:
#1 Higher Rates Of Pay
While the priority has changed somewhat with more and more Millennials entering the workplace, the importance of pay hasn’t gone away entirely.
To put it as simply as possible, it doesn’t matter how much an employee enjoys working for you and believes in the business they are working for if you aren’t able to pay them what they believe they deserve then they will consider working somewhere that will.
The best way you can ensure your compensation package is correct and fair is to look at what your competitors are paying their employees.
The reason for this is most employees that leave a business, continue working within the same industry or sector.
It could also be worth educating them on the actual amount you are paying them by handing over an annual statement that translates all their perks and benefits into a dollar amount.
#2 Unsatisfactory Engagement
The huge majority of workers want to enjoy a role where they feel like they are progressing and moving forward. The idea of being stuck in a hob that is both monotonous and stagnant just does not sit well with most, and that is why they may start seeking out work that better aligns with this need.
That is why it is up to you to ensure you are doing all you can to boost your engagement among your employees. It could be regular team-building exercises that get them excited.
It could be a tweak in your company culture that allows your staff to contribute in bigger ways.
It could just be that you review your communication policies knowing that the more transparent you are with your staff the more engaged they will be with the overall direction and values of your business, which is a hugely important thing for employees these days.
#3 Growth Opportunities
This used to allude to employees feeling like they are stuck in dead-end positions with no chance to progress, but that isn’t the only thing it means.
Employees also want to have the opportunities to grow in terms of developing new skills and being granted new responsibilities.
In that sense, something as little as committing to an online CPR renewal course can make an employee feel so much more valued because you are investing in them and, not just that, but teaching them a valuable life skill.
This is what the most successful businesses do; they help their employees and position them better for future advancements within the business. That is what employees want.
They want to know there is the potential for growth and they want to enjoy the benefits of that, which is something that will keep their eyes from wandering.
#4 Bad Bosses
Nothing has the ability to make an employee’s working life feel as miserable as the boss.
We’re not just talking about you either, the person at the top of the corporate food chain; we’re talking about the role an employee’s immediate supervisor or line manager plays in their contentment.
Quite simply, if they don’t get on with them then they aren’t going to stay and that is because their daily life is affected.
Flip this on its head, however, and you can reap amazing benefits.
This is because an employee’s that enjoy amazing working relationships, ones that keep them motivated and happy, are more likely to tolerate lower pay rates or stressful working environments; not that either of these is advisable if you are truly concerned about your turnover rate.
One of the best ways to ensure your managers aren’t having a negative impact on your business is to have training for them that is consistent, while also offering your employees a chance to take up any grievances they may have without putting their positions in any more risk.
#5 Company Culture
There is a huge correlation to be had between an employee’s happiness and the working environment in which they operate.
The reason for this is a company’s culture has a huge amount of sway over its employees Monday Morning attitude. Those who loathe the company culture, the toxic environment, and the office politics will not only be miserable but they will be hugely less productive.
That is why it so important you understand what sort of office culture you are embodying and how you can make it a much more positive one.
After all, those who want to get up on Monday morning and come to work to see their friends will be so much more motivated and so much more productive. Don’t have your office culture be the reason for your high turnover.
#6 Work-Life Balance
More and more companies are trying to reduce their overheads and cut costs by having their employees do the work of two or more people.
That is the reality of it. Yes, it makes sense on paper, but the reality of this is producing results a far cry from this. We know that companies face economic pressures that demand more productivity at lower costs, but asking your employees to shoulder this increased demand and for no extra reward will see the standard of work drop.
Not only that, but employees will have to work longer hours, and weekends, in order to match their workload. This is effectively asking them to choose between their work and their personal life, something that does not sit well with those workers of the Millennial generation.
However, it will always be them that has the last laugh because they have the option of going elsewhere. That is why you need to ensure that you are doing all you can to improve their work-life balance.
Have a no weekend work policy, offer flexible working hours, let them work from home once or twice a week, or give everyone a Friday afternoon off once a month.
Anything that says you cherish their need to have a personal life is going to go a long way in keeping them loyal to you and your company.
If you are able to understand the way your employees are possibly thinking, and thus properly understand the most common reasons for high employee turnover, then you will be able to make the amendments necessary and ensure your business doesn’t continue suffering on this front.
The good thing is, as you will see from this list, it doesn’t take massive changes to create employees that are happy, loyal, dedicated and productive.
So what are you doing to keep your employees from leaving your company? I know for me I use these tips to keep them from leaving saving me a ton of time from looking for new employees. In the end, it’s easier to use these tactics than continuously looking for new employees.
So what are your thoughts now, share your comments and ideas below.