Employee turnover can directly affect your bottom line. High employee turnover cost companies in time and money. Experts estimate it costs upwards of twice an employee’s salary to find and train a replacement. High turnover can also damage morale among remaining employees. The top reasons for high employee turnover and how to protect your company.
Company culture conflict
Employees that don’t fit in with the work environment won’t be happy. They won’t fit in, and they won’t get along with their co-workers. Even an outstanding candidate that doesn’t match the behaviors and culture of your business will end up leaving. It’s best to hiring the right people from the start to reduce employee turnover. Interview and vet candidates carefully, not just to ensure they have the right skills but also that they fit well with the company culture, managers and co-workers.
Professional growth
Moving forward in a career is important to everyone. No one wants to be in a dead-end job. Be sure to create opportunities for growth and development for your employees. This could come in the form of assigning employees to a special project or putting them in an expanded role. Taking time to meet with your employees and discussing career and succession plans with them.
Bad managers
Even employees that are completely committed to the business will leave if they have a bad boss. Supervisors that create an uncomfortable work environment will make employees leave. If the work relationships are positive and motivating, employees will accept average wages and mundane or even highly stressful work. Make sure managers have the tools and resources they need to succeed in their roles. Provide training and watch out for bad managers.
Better compensation
People want to be compensated well. They need to cover standard expenses like housing, utilities, and food. If you don’t pay your employees well, they’ll find a business that will. Keep tabs on what compensation is being offered by your competition and be sure you’re offering comparable benefits packages. A good way to help your employees to fully appreciate how you’re rewarding them, is to provide each employee with an annual statement of total compensation that shows all their wages plus any other benefit you provide translated into a dollar amount.
Lack of engagement
There are many ways to boost engagement among your employees, and your approach should be based on what’s right for your company culture. Keep your employees excited about what they’re doing through team building. Communicate with your employees regularly and have an open-door policy. Share mistakes so everyone can learn from them. Get down in the trenches and work side-by-side with your employees from time to time. You can learn a lot about what is really happening in your company just by staying involved.
Lack of acknowledgement
Your employees need encouragement and recognition. You don’t need to shower employees with praise for everything they do. When they finish a large, difficult project, congratulate them. Show them that you see their hard work. A good way to show appreciating for a job well done are gift cards to local coffee shops or restaurants. When employees do something worth congratulations, give it.