Change is inevitable, but it can be costly for your business. Employee turnover is one such element of change that directly affects your bottom line. As such, it is important to identify the motives of departing workers and devise an effective retention strategy.
Here are four of the top reasons good employees may resign:
1. They’re motivated by higher pay. No matter how much someone loves working for you and believes in your business, if they are presented with a better offer they will likely consider leaving. Keep tabs on what compensation is being offered by your competition and be sure you are offering comparable benefit packages. In addition to traditional “pay and benefit” compensation, some companies also opt to offer additional perks such as on-site fitness rooms or day care, discounts on services or travel, and employee assistance programs.
2. They’re not engaged. “Employee engagement” may sound like another corporate buzzword, but the Society for Human Resource Management (SHRM) has identified a number of common traits shared by “engaged” employees:
- Pride in employer
- Satisfaction with employer
- Job satisfaction
- Opportunity to perform well at challenging work
- Recognition and positive feedback for one’s contributions
- Personal support from one’s supervisor
- Effort above and beyond the minimum
- Understanding the link between one’s job and the organization’s mission
- Prospects for future growth with one’s employer
- Intention to stay with one’s employer
3. They’re bored. High-performing workers need to feel that they are being challenged and are moving forward in terms of professional growth and development. Take time to meet with your employees and be proactive in discussing career and succession plans with them.
4. They’re poorly managed. A bad boss can make any employee miserable. Even if your staff is completely committed to the business, if their immediate supervisor creates an uncomfortable work environment they may consider leaving.
“In my experience, employees often voluntarily leave a job due to the relationship they have with their direct managers,” says Anderson. “As human beings we crave routine, structure and consistency. Generally, an employee can settle for average wages and mundane or even highly stressful work if the work relationships are positive and motivating. Without that relationship element, employees will have a wandering eye.”
By understanding the common reasons for high employee turnover, you will be better able to protect your business from a similar fate. Employees who are well-compensated, challenged, engaged and properly managed will likely be loyal, productive members of your workforce for years to come.