Employee turnover is a serious problem faced by many businesses in the United States today. It can be demoralizing to the other employees who watch their colleagues come and go, and also cause significant financial loss. Because basically all the money you invest in recruiting, finding, and maintaining an employee who leaves the company relatively quickly, results in thousands of dollars loss in unproductive revenue.
New statistics and cases of CEO succession in the S&P 500 indicated that there was less than 16 percent of CEO turnover in 2014, which has decreased from the 23.8 percent rate from 2013.
The best way to bring down the employee turnover rate is to invest in your employees. Developing your associates will bring up retention and productivity. Knowing what makes an employee say goodbye to your company is crucial in developing an effective retention strategy.
Below are the top 5 reasons for why employees are leaving businesses these days. While some points are similar to the others, some stand alone. Start by identifying problems that cause your staff members to leave. Put on your thinking cap and find solutions to retain and develop your employees at the same time for reduce the employee turnover rate.
Too much drama at the office
Drama arises when personalities conflict. A team can only be productive if they get along and work well together in harmony. To create a good team you need to understand the dynamics of the team. Identify personality traits of each individual prior to hiring using behavior assessment tools. Team up people with complimentary personalities. For example, you won’t want a group composed only of innovators. Instead, an effective team would be one which has only one or two bold thinkers balanced with submissive workers to keep the work flow going and not constantly challenge new ideas.
Can’t work under an authority
There are people who just can’t stand working under a boss. It’s said that you’re either born a leader or a follower. Although most companies want leaders on board, they find it can be tricky managing them. Some employees are resentful of higher authority, and are deemed uncooperative when they don’t follow the rules, work nor provide value to the organization.
A solution to this problem lies in the recruitment and selection phase. During the interview, forego typical questions, like ‘why do you want to work here?’, in favour of indirect questions which detects their work values, reliability and commitment to serving those in charge. A good question would be: according to our survey, you rated your last boss as ‘fair’, why not excellent?
A better opportunity comes along
If your organization is not providing your employees with opportunities to grow, then they will simply start looking elsewhere. The moment your hire a new employee let them know what it takes to be a top performer. Identify standards for success and keep them informed on career advancement prospects like promotions, and let them know how close they are to their goals.
Employee is stretched to the limit
An overworked employee is an unhappy employee. And an unhappy employee is itching to leave your workplace at the earliest opportunity. Do not over-burden your employees with more work than they can handle.
Typically you’ll find managers who only view their employees as money-producing resources, overwhelming them with a mountain of work. If you want your employees to do maximum work and still be happy at their job, then give them the right tools and resources to get the job done quicker and easier.
In today’s digital era, it makes so much more sense to digitalize your workspace saving time and energy. This leaves you with more time to develop your associates. Have the office connected via a centralized network and an automated system programmed to take menial tasks off of your employees’ hands. This increases both the employee’s efficiency and the company’s productivity.
They were not correctly managed
Everybody has their strengths and weaknesses. A good manager understands how to use their employee’s strengths to the company’s advantage and assign them to the right place. The best way to do this is to create an inventory of your talent. Make a chart of the tasks your team has in hand and give responsibilities according to what each individual is good at.
Focusing on the strengths doesn’t mean you should ignore their weaknesses. It is highly beneficial to the company to provide up-to-date training of their employees and facilitate them in sharpening their skills and learning new ones.
Learn how we can help your business grow profitably today.
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