There are many contributing factors that can drive an employee to resign from his/her position. Employees who find themselves constantly buried in their workloads and without the proper support from their peers and management will suffer the “need to get out” mentality.
In a recent survey nearly 600 individuals said they left their job without another position lined up.
Evidently, it’s no longer an employer’s market when it comes to hiring and retaining talent; the leverage now belongs to the employees. And however you’ve managed your company up to this point, high turnover rates emphasize the need for an internal examination.
Here at MCDA CCG, our team of business advisors provide assessments to look at various issues within your company to see where things can be improved to create a better workflow and environment to retain your key employees.
What is High Turnover?
Employee turnover is the number of employees who leave a company whether its soon after they are hired or later into their time with a company. This number can either identify employee satisfaction within certain roles or departments or it can indicate the level of work life balance employees experience.
What Causes Employee Turnover?
High employee turnover indicates that many employees leave an organization on a regular basis, meaning retention is low. There are many factors that can cause high employee turnover, including:
While employee burnout has been a topic of discussion in recent years, the pandemics universal work from home order brought it bach into the spotlight. When employees are required or feel obligated to work long hours, they may eventually experience the mental or physical fatigue we know as burnout. This can lead to reduced productivity and increased dissatisfaction. Long working hours can also impact employees’ work-life balance, which can further exacerbate these experiences.
Inconsistent Leadership Styles
Sometimes, managers and supervisors may be inconsistent in how they give feedback to employees. This may eventually lead to employees feeling unsupported and unsure of how they can improve in their role.
Some companies lack the ability or motivation to provide competitive pay and consistent raises for cost-of-living adjustments. This can lead to highly skilled employees feeling undervalued and underpaid, which can encourage them to find roles that provide a good salary elsewhere.
Some organizations lack the ability or motivation to provide competitive pay and regular raises for cost-of-living adjustments and quality work. This can lead to highly skilled employees feeling undervalued and underpaid, which can encourage them to find roles that provide a good salary elsewhere. It can also lead to decreased motivation, productivity and work quality.
Organizations that can’t or aren’t inclined to provide adequate health insurance, retirement plans, and other employee benefits can also have employees who feel undervalued or experience hardship that can affect productivity.
Providing benefits packages that meet or exceed current standards for certain roles, industries or levels of experience can help employees feel more secure and established.
Poor company culture
Company culture encompasses the beliefs and values of an organization and having a poor company culture can involve inconsistently enacting or incorrectly using an organization’s beliefs and values. For example, if an organization says it values work-life balance but doesn’t provide adequate paid time off, this organization may be inconsistently reflecting its values.
Establishing policies, procedures and programs that reflect values like compassion, community and quality can promote a consistent and good company culture that makes employees want to stay.
Lack of employee recognition
Lack of employee recognition refers to the little to no celebration of employee’s achievements or hard work, which can lead to them feeling undervalued. This can also make it difficult for employees to determine what a good performance looks like in their workplace, resulting in low productivity.
Few opportunities for professional development/ career advancement
Professional development involves providing employees with opportunities to learn new skills and/or pursue higher education. When companies fail to provide these kinds of opportunities, they risk employees stalling in their improvement, falling behind on new technologies or practices.
Now that we’ve covered the top reasons for employee turnover, here are some ways to improve your high turnover rate:
1. Evaluating the employee’s role at your company
Has your employee taken on more than what they were initially hired for? Has the employee gone above and beyond to show their worth while working as a key part to contributing success to your business? And lastly, do they work as a team player?
If yes to the above, you may want to consider revaluating your employees pay to provide further motivation.
2. Do your employees have room to grow and have opportunities?
Do you offer your employees perks? Perks can include holiday pay, mental health day, birthday day of off, weekly, semi weekly or even monthly show of appreciation for your employees in the form of catering a Friday breakfast or lunch at work?
Any of these options not only improves an employees outlook on their job but it also allows them to feel supported and appreciated for their hard work.
3. Do you offer medical, dental and life insurance?
Sometimes this can also drive an employee to leave if they are overworked and not supported since they feel like they are missing out on a “full package” like job.
If your company is experiencing low productivity, slumps in employee morale and/or high turnover, you are probably due for an audit.
An audit conducted by business experts, such as our MCDA CCG team, will be able to accurately pinpoint the internal weaknesses creating high turnover within your company. Additionally, by utilizing our up-to-date employee data, state of the art compensation system design and industry wide knowledge, we can help you address the areas that need improvement by recommending methodical solutions that wont impact your bottom line.
Call our office today or reach out to us by email or through our social media account (@mcdaccginc)
Other MCDA CCG resources you may like:
6 Inexpensive Employee Benefits For Start-Ups To Provide
Integrate Coaching into Your Management Style With These 5 Tips
Make Recognition Part of Your Company’s Culture
5 Steps to Balance Your Family and Work Life
Employee Development & Why It is Beneficial
Why Outsource HR: Pros and Cons