One of a company’s biggest problems is the employee’s retention rate. It costs a lot of money to replace an employee in a sensitive position on the team, and the outlook is that by 2023 job rotations will increase by almost 30%.
Identifying the reasons why employees are migrating to other companies and doing something about it is then a top priority task. From salaries to corporate culture, there are many reasons for employee turnover, but fortunately there are also solutions that do not involve having to hire another worker.
7 most common causes of employee turnover
If your company has high turnover rate, it is likely due to one (or more) of the following reasons. The good news is that many of them can be reversed, so your employees may want to stay in their jobs.
To detect them, frequent surveys must be applied and the criteria of your employees must be taken into account. This will help you identify common causes of turnover your organization struggles with. Then, you can come up with a plan to address them.
Work overload
Almost 70% of the employees feel that they do not have enough time to do their taks. Working overloaded is demotivating, as well as a source of stress and exhaustion for the employee.
When a worker is constantly overloaded, he tends to go to other companies that know how to balance work with personal life.
How to solve it?
With a better distribution of the work throughout the organization. If as a manager you are not sure if your employees are overloaded, you can ask them directly or take regular surveys. If there is actually a work overload, maybe it is time to hire more staff or freelancers.
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Favouritism in the team
If the manager does not treat all team members equally, professional jealousy may arise among the rest of the workers. Privileges must be equally shared. In the same way, the manager must avoid treating a worker differently due to unconscious biases such as origin or gender, whether due to favouritism or discrimination.
How to solve it?
There must be equality when it comes to treating team members. This requires reviewing company policies and ensuring that everyone receives the same treatment.
Low wages and few benefits
If a worker feels that they arenot being paid enough according to the work they do, or another company offers them greater benefits, they are certainly going to think about quitting. Studies indicate that about 50% of workers would go to another company that provides them with a 10% wage increase.
How to solve it?
If you consider that replacing an employee costs about 33% of their annual salary, it is much cheaper to offer them a little more money on a regular basis to increase their productivity. Another way to keep them is by offering a hefty package of benefits, like health care, pet insurance, daycare, and others that make your employees feel appreciated.
Toxic company culture
If employees love the culture and values of your company, they will be happier and more productive. But those who do not agree with the company values are 12% more resolved to quit.
How to solve it?
You need to know how happy your workers are with your company, and take proactive steps to align your corporate culture with your workers' mindset. Both surveys and personal interviews are effective tools to understand the criteria of employees and take action accordingly, to make them feel more comfortable within the company.
Bad management
If a specific supervisor's work team resigns on a regular basis, it's time to change the supervisor. The company may not be the cause of this employee turnover, nor the working conditions: a bad boss can ruin all the fun.
Trust and transparency are two key factors in how employees feel in relation to their bosses. If one of those fails, it is reason enough for employee turnover.
How to solve it?
Attention should be paid when hiring and training supervisors. Then, they must be controlled to measure the effectiveness of their work. If we take into account how much it costs to replace an entire work group, perhaps the one who needs to go is the boss.
Little professional development
It is only logical that a worker wants to improve professionally: it is not just a question of salary, but of personal growth. A company that does not take into account this claim will be at risk of losing employees on a regular basis.
How to solve it?
Investing in the personal growth of the work team not only pleases the worker, but is also useful for the company. A company that facilitates the professional training of its employees ensures that its staff are much more capable, an also engages them for a longer period of time.
For example, giving space to an employee who studies a specialized course is a guarantee that during that period of time they will not go looking for work elsewhere.
Tutoring programs can also be started, in which the more experienced workers train the less advanced. Another effective way is to maintain an open door policy and support the career goals that your employee conveys to you.
Not recognizing hard work
The relationship between the employee and the company is a kind of love: it cannot be taken for granted. A worker requires regular recognition of their efforts for the development of the company, and according to surveys, only 1 of 3 employees receives positive feedback on a regular basis.
In this sense, women appears to be discriminated against, receiving less recognition than their male teammates. Therefore, the lack of recognition not only affects the retention of the workforce, but its diversity.
How to solve it?
It is necessary for supervisors to review their work style, to include in them the encouragement of their workers in a fair and sincere way. Giving credit where it is due increases team morale and productivity. Furthermore, a worker who feels that their work is necessary and appreciated by their company and their colleagues is less likely to quit.