For years your business barely knew the meaning of turnover. New employees came onboard and stayed. But, now your organization’s turnover rate has increased, along with the financial outlay for recruitment and hiring. You’ve decided to learn more about this trend, and why employees you thought were satisfied are suddenly quitting.
The Costs When Employees Quit
Employee turnover costs American businesses billions of dollars per year. This money reflects hiring expenses and so much more:
- Customer dissatisfaction if employee morale, engagement, and performance lag.
- The potential for increases in absenteeism and workplace incidents when employees fill in for empty positions.
- The possibility that turnover will continue, further disrupting workflow and your bottom line.
Why are They Quitting?
According to Gallup’s Chief Scientist for Workplace Management, James K. Harter, PHD., seventy-five percent of the reasons for employee turnover came down to issues that employers can influence. Career advancement tops the list (32%), followed by pay/benefits (22%), lack of job fit (20.2%), work environment (17%), flexibility (8%), and job security (2%). As you can see the majority of the issues are things that employers can adjust.
Steps for Building Trust and Retention
The relationship between employee engagement and manager characteristics was presented in a 2015 Gallup report. It summarizes thousands of opinions from businesses about workplace influences that positively affect employee satisfaction and staying power. These include:
- Focusing on strengths rather than weaknesses.
- Providing staff with learning opportunities and guidance that paves their future direction.
- Build relationships and workplace networks. Be here now—they will notice.
A sure-fire way to retain your employees is to stay in touch with how they are feeling about their work experience. Is their work meaningful to them? Are they receiving constructive communication, feedback, and recognition from you? If you follow these guidelines your chances of keeping your staff from jumping ship will greatly improve.