High Employee turnover is a problem that most of the organizations face today. According to Bloomberg, $11 billion is lost annually due to employee turnover and as per a Gallup study, Millennial turnover costs the U.S. economy $30.5 billion annually. A certain degree of turnover is unavoidable and there is no way to eliminate employee turnover completely. But, the most important thing for you as an HR professional is to ensure that there is a desired balance between the ones who depart and the new hires. A high employee turnover can have a major effect on the bottom line of most businesses.
That is not to say that every employee who leaves the organization is bad for your business. There are certain employees who retire, leave town, quit because of family commitments, desire to change professions or even to start a business of their own. But, if you find that there is a high employee turnover and you are losing good employees, you might want to look at the probable reasons that cause the high employee turnover and then come up with the solutions to resolve this problem.
1. Employees feel overburdened with work and have no work life balance
In a study conducted by TimesJobs in 2017, over 80% of working professionals surveyed admitted that they are overworked with nearly 60% claiming that the workload has worsened compared to 2016. Consistent pressure of work and performance is not motivating for the employees. These overworked employees will inevitably jump ship to join other organizations that understand the importance of work-life balance.
Solution: Distribute the work evenly amongst the departments
It has generally been found that in small organizations where there is a lack of cohesion, a single person is burdened with multiple jobs. The best way to resolve this situation is by dividing the work amongst the departments evenly. If you are not sure whether the employees are feeling overworked, use anonymous pulse surveys to know whether the employees perceive they are responsible for too much of work every week. If the majority of your work staff has the problem of being overworked, then it might be the right time to hire new employees in the organization.
2. There is an element of bias amongst the top management towards specific employees
When the boss’s favorite employees start getting preferential treatment, it is only a matter of time before the other employees start feeling cheated. There is no one you can give privilege to a particular employee by ignoring the needs of other employees.
Solution: Treat all employees in the same way
It is the duty of the top management to ensure that there are no favorites in the office. If you do not have a specific remote working policy, there is no way you can allow one or two employees to work from home while expect others to come to the office. It is a sure shot way to ignite fire amongst the other employees.
3. Inadequate annual increments make employees leave their jobs
A research conducted by TinyPulse on employment engagement found that 23% of all workers said they would quit their current job if they were offered a position in another company that paid just 10% more. If an organization hesitates to give justifiable increment to its employees, chances are they will constantly be on the lookout for a better pay package.
Solution: Give reasonable increments to the current employees
The cost of replacing an employee is a lot as discussed above. So, you are better off giving regular increments to the current employees.
4. Hatred amongst employees for their bosses
If you find that a lot of employees who work under a particular manager are changing their jobs too often it may be due to their dislike for their boss. This is particularly true if the managers are giving terrible treatment to their subordinates. Always remember the saying employees do not quit their companies, they quit their bosses.
Solution: Conduct background screening of managers to select the right person for the top management job
Start the process by conducting pre-employment background screening during the hiring process to select the best person for the managerial position. Train the managers in the same way as any other employee by providing adequate managerial training initiatives. Finally, keep your watchful eyes always open on your managers to ensure that they are doing a fine job of managing their subordinates.
5. Lack of career development opportunities
Today employees are looking to grow professionally. They want to undertake responsibilities not just take their pay package and relax. But, if you do not give them an opportunity to grow, they will not hesitate for a second to move to another organization to satisfy their thirst of career growth.
Solution: Give an open opportunity to all the employees to learn and grow in the organization
Show the employees that you care for them by providing ample growth opportunities for them. This can be done by starting a mentoring program and encouraging the employees to attend relevant conferences. Invest in learning and development by initiating individual development plans for all the employees. Always keep your doors open for any employee to come up with a suggestion to improve their skills. Have a policy of promoting employees from within the departments as much as possible. Have a practice of circulating internal job posting for a vacant position throughout the organization.
6. Lack of recognition for hard work
You cannot expect employees to give their best on a daily basis and sit quietly for not getting appreciated for the hard work that they put in. Once an employee is habituated of being ignored for their contribution they will look elsewhere for a better job.
Solution: Appreciate employees genuinely for their hard work
Introduce employee recognition program in your organization by giving credit where it is due. Appreciate the employee who has done a great job in a genuine and sincere manner.
Chances are if your organization is experiencing high employee turnover, it can be due to at least one of the reasons mentioned in this blog. The good news is that you can take the correct measures in the form of solutions provided to make your employees stick to your organization. The faster you implement these solutions, the sooner you will get the employee retention rates in your organization go up!
cFIRST Think Tank is the team that researches and produces content for cFirst. This team comprises of seasoned content and digital design professionals and background screening industry veterans. Together we produce insightful blogs, infographics and reports meant for HR and background screening professionals.