As a successful entrepreneur or an HR, you would agree that employee turnover can be an expensive affair. Apart from losing a valuable team member and productivity, finding the right candidate for that vacant job can be costly, frustrating, and time-consuming. Even if you find the right replacement, getting them on board and training them can take more time.
According to a study, replacing a former employee can cost anywhere between 90% and 200% of their annual salary. The cost of lost experience and expertise walking out of the door becomes nearly impossible to estimate. Since the process is expensive and frustrating, it is always better if you have less work to do. Sadly, it only takes a popular and well-liked team member or two to set off a chain reaction that often results in more people leaving. In this case, you will have to focus on backfilling the empty positions for months.
Therefore, it is imperative to identify your best staff members and keep them happy and engaged. In this case, it is always helpful to understand why some employees get so frustrated with their companies (and the dynamics behind)—to reduce employee turnover. This blog will explain some common reasons why some workers leave and what you can do to prevent this.
Why Do Employees Leave?
Here are some common reasons why staff members leave your organization and look for jobs elsewhere.
Relationship with Their Manager/Boss
Of course, there are no such rules that the worker needs to be friends with the boss/manager. However, they need to have a certain degree of relationship. The boss is an integral part of the team/company, so there should not be an uncomfortable relationship.
The job of the manager/boss is to provide feedback and direction, spend time in professional meetings, and connect the worker to the grand scheme of the company. If the member has a toxic relationship with the supervisor, it may undermine their commitment, confidence, and engagement. According to sources, having a bad boss is the primary reason why workers quit their jobs.
Unchallenged or Bored With the Work
No staff member wants to be unchallenged or bored with their work. If you have an employee facing this dilemma, you need to help them find that passion. Workers always look forward to enjoying their work since they spend more than a third of their day getting ready for work and working. If the work remains the same, the chances of losing your employee increase.
Relationship with Co-Workers
When a worker leaves an organization, they send an email to the entire company to say their final goodbyes. This message may also include a comment about passionate and friendly co-workers that the leaving workers will miss and/or cares about. For an employee, the co-workers with whom they sit, work, etc., are essential components of a work environment.
It's also been found that out of the 12 factors of whether a worker is happy with their job, one is having a best friend at work. A good relationship between employees will help retain staff members. If an employee's friends leave, that particular worker might not feel like doing that job anymore. Thereby, this increases the worker turnover rate and increases the costs of employee turnover.
Financial Stability of the Organization
The worker's feeling of instability and lack of trust can be derived from a wide range of factors. These might be, for example, acquiring new companies, mergers, employee turnover, bad press, hiring freezes, salary freezes, more work hours, layoffs, lack of sales, etc.
If the worker knows that the company is not doing well, they may take the chance and start looking for new jobs. Additionally, organizations must not withhold or delay the salaries of their employees. All these factors will eventually cause your employees to pack up and leave.
How Do You Prevent Employee Turnover?
Now that you know some reasons why employees leave an organization, here are some tips on how to prevent employee turnover:
Be Generous With Their Paychecks
You can only get away with paying your employees less than their salaries for so long. Eventually, they will only nurture a grudge until your competition offers them the same job at a better wage. In this case, you will lose a valuable worker just because you want to save some money.
One of the best ways to reduce employee turnover is to look for and hire the best candidates and pay them as much as possible. If you pay them their entire salaries and then some more, your employees will not leave your organization and will put in more effort at their jobs.
Transparent Communication Is the Key
It is recommended that you have a feedback session with your employees at least once a month. Such meetings will ensure why your employees are feeling frustrated or what change they would like to introduce in the organization. Always make an effort to find out what is bugging your employees. It is one of the top strategies to reduce employee turnover.
Set Ambitious Goals for the Top Employees
Most of your staff members do not know what they want. As an HR, it is your job to talk to them to find out about their plans and ambitions for the future. Then, you need to give them a role to help them get one step closer to their goals.
You must don the role of a mentor and help your employees grow professionally. You need to set ambitious goals for them without the fear of delegating the critical tasks to them. By handing them valuable tasks, your employees will feel more trusted and responsible. This will maintain a healthy employee turnover rate.
There is simply no single high employee turnover solution. It is a chain of decisions, work, or financial aspects that may force an employee to leave. With the help of these tips, we hope that you can improve the employee turnover statistics of your organization.
Would you add anything? Leave a comment below!
About The Author: Emily Moore is an English & programming teacher with a passion for space and blogging. She believes that every successful entrepreneur and research leader today should focus on conserving our planets resources. With satellites circling the orbit, it is easier to get relevant data on any environmental changes. This, in turn, should help people quickly address any challenges.