A Look Into Employee Retention…Common Reasons You’re Experiencing Turnover
Every company experiences turnover — even highly competitive multinational corporations where top talent vies for every open position. However, there is fine line between typical employee flux and a turnover rate that should raise major red flags. If your business is seeing a high turnover rate, action needs to be taken immediately.
People quit their jobs for a reason. Whether your employees are leaving one-by-one, or exiting en masse, your company needs to understand why and address the issue(s). Low retention rates can quickly cause morale to plummet, productivity levels to decrease and panic to ensue among existing employees. As work the quality of work declines, business relationships could suffer. Eventually, as more and more people talk, the problem(s) can effect your company’s image as well, making it more difficult to fill open positions and generate new business. Rectifying a the situation must be your top priority.
3 Reasons Your Turnover Levels Are Sky-High
Managers can make or break a job. Reporting to a supervisor who is rude, demanding, unsupportive or worse, can make an otherwise great position a nightmare. A 2015 Gallup survey revealed that around half of all professionals have quit a job at some point in their career because of a bad boss.
Employees are sometimes promoted into managerial positions because it is the only way to progress in a company. If these individuals do not receive proper training on how to manage their subordinates, they might not develop into effective managers. This scenario is not fair to any party involved. Poor management can be address in a couple of ways. Provide training to all managers so they can be more effective at their jobs. Consider creating senior-level positions without a personnel management aspect, as some people are better at managing processes than people.
2. Subpar Compensation
You want people on your team who are truly passionate about their jobs, instead of those only focused on earning a living. However, even the most enthusiastic professionals want — and deserve — to earn a competitive salary. Even if your company offers interesting work, most employees will not stay with you for the long-term if they have trouble paying the bills on their meager salary or feel as though they are not being paid their worth.
Use sites like the U.S. Bureau of Labor Statistics (BLS) to conduct a compensation audit, to see how your company measures up. If your research reveals that your staff is underpaid, do everything in your power to bump their salaries up. While it may take awhile to make extra room in the budget, consider offering better perks, such as the ability to work from home, a pet friendly office or a casual dress code in the meantime.
3. Failure to Show Appreciation
Employees don’t expect you to pat them on the back for showing up to work and doing their job each and every day, but they expect their hard to be acknowledged and appreciated. When they meet and especially when they exceed your expectations, you should recognize their efforts. When an employee does outstanding work, stop by their desk to say thank you or acknowledge the job well done in a staff meeting. A little bit of gratitude goes a very long way.
Make People Your Top Priority.
RealStreet is an employee leasing company built and run by industry experts. We offer employee leasing, lease-to-hire and direct hire solutions to shorten your time-to-fill, decrease employment costs and help you complete projects on time and under budget. Contact us today to learn more!