As reported recently by the Department of Labor, the average tenure of an employee in the United States is 1.5 years. According to one HR study, in 88 percent of voluntary job turnovers, the root cause is something other than money.
As your company addresses the pressing issue of employee churn and minimizing turnover, consider these primary reasons why top-performing talent tends to leave their company and seek new opportunities elsewhere.
The familiar adage is true: People don’t quit their jobs, they quit their bosses. Not everyone is skilled enough to manage processes or lead people. Hire or promote people into management only if they have the necessary attributes to influence others and can see, buy into and execute your company mission and vision.
- Lack of management feedback is a leading cause of performance problems. Research has shown that 60 percent of employees say they need more dialogue and feedback in order to succeed in their roles. Too many managers have not been coached in two-way communication themselves so, lacking good role models, they either give no feedback at all or resort to an unhealthy YST (Yelling, Screaming and Threatening) approach.
- Companies whose employees have high trust in their managers outperform their competitors by nearly 190 percent. Yet, only 39 percent of Americans report that they trust their senior leaders. Your executives and managers cannot inspire commitment from their employees unless they first show they are committed to them.
Lack of Advancement Opportunities
While 85 percent of employees say career growth is a key reward for them, only 49 percent say their companies are providing it. Obstacles include supervisors who are reluctant to discuss career progression, rigid policies that restrict workers from advancing, and managers who hoard talent by blocking movement to other departments.
- Provide self-assessment and career discussions, supported by coaching and training. Prepare all involved parties to have ongoing conversations about talents, needs, and new options within your organization.
- Create career paths that are well communicated and understood. Every employee should be clear about how they can move horizontally or vertically within your company. Make sure their goals and future visions align with yours when it comes to the ongoing roles they will play.
Too Much Work
Your best performers can typically handle more work – so you tend to give it to them. This is good strategy and mutually beneficial, up to a point. When these superstars begin to feel that they can’t escape from work due to the extent of the demands it places on them, then you have a problem.
- Forty percent of Americans say their jobs are extremely stressful. Another 70 percent feel they don’t have a healthy work/life balance and 60 percent note that they would give up some pay in exchange for more personal time. This is especially true among members of Generations X and Y, who soon will make up the majority of your workforce if they don’t already.
- Be sensitive to employees’ personal needs. Those who work in “cultures of sacrifice” are lined up at the door, ready to exit at the first possible opportunity. At one large bank, when an employer allowed some branches to adopt flex time, customer retention rates were seven percent higher and employee retention rates were double those without the flexibility option.
The recruitment and workforce development experts at PrideStaff Modesto can help you to not only attract A-level talent, but enable top performers to grow within your organization, versus outgrow it. Contact us today to learn more.