Employee turnover can wreak havoc on your company. For starters, it’s expensive. While exact figures vary by role, industry and other factors, the cost to replace a team member who resigns typically ranges from one-half to two times their annual salary, or more. And on top of that financial hit, morale, productivity, and your reputation as an employer can suffer if staff churn is high within your organization.
Not a pretty picture.
Before you can make necessary changes to avoid high staff turnover, you need to understand why people leave your company. You can do this via ongoing communication including employee engagement surveys, as well as actively listening to day-to-day feedback. Exit interviews can also be valuable fonts of information.
Common Reasons for Turnover
Yourin-house research will define the specific reasons behind staff turnover at your company. But, it may help to be aware of some of the contributing factors that apply across most industries. Employees typically leave their jobs because they:
- Need more of a challenge: When there’s nothing left to learn from in their role, a person begins to seek more of a challenge. So, be sure to provide your employees with ongoing career growth and development opportunities. One recent research study shows that less than half of workers feel they have an advancement path with their current company, and 46 percent say their current employer does not support their professional aspirations. Avoid being part of statistics like these.
- Aren’t making enough money: It may not be the number-one driving factor for every employee, but especially in light of today’s economic picture, money seriously matters. If someone feels underpaid for the work they do, they may feel it’s time to move on to a new job. Even if an individual loves working for you, their budget and future aspirations may say otherwise. Take a hard, honest look – and be sure you are compensating people fairly and in line or above what your competitors offer.
- Want to feel valued: It’s human nature to need to feel appreciated and that you’re making a positive impact in life – and in your work. Make employee recognition a top business priority – and be sure it’s personalized and much more than just lip service.
- Are quitting their manager: If an employee cannot positively relate to the person who supervises them day to day, their future days at your company will be numbered. Focus on developing managers who foster teamwork, engage staff members, and make time to actively listen to their employees’ feedback and concerns. Lastly, hold every one of those managers accountable for real, tangible results.
- Need greater work life balance: Offer the most lenient scheduling options possible, along with remote and hybrid work for those who desire it. The importance of providing work life balance to your most valued employees cannot be overstated.
Call on the PrideStaff Modesto team to help you not only hire, but also retain top talent within your industry, despite today’s candidate-driven job marketplace. Reach out to us today to learn more.
