NEWS
Top 3 Reasons Why Your Employee Turnover Is So High
Employee Turnover
Is barely a month going by before another employee quits?
While it’s not out of the ordinary for an employee to leave from time to time, something’s wrong when your company becomes a revolving door. Replacing one employee costs more than $30,000 and your business will suffer lost productivity until suitable replacements are found.
If your employee turnover rate is spiraling out of control, it’s time to slam on the brakes. Unfortunately, it’s not that simple. You must first understand what’s causing your employees to flee.
Although specific reasons can vary from company to company, there are some usual suspects to keep an eye on. Read on for more insight.
1. Inadequate Compensation
Let’s face it: the primary reason your employees come to work is to earn a living—anything else is secondary. If you asked your people to work without pay for a month, most of them, if not all, will quit in search of a job that will help them pay the bills.
So, it shouldn’t come as a surprise to learn that inadequate compensation is the leading cause of staff turnover. If you’re struggling with employee retention, chances are your company is among the lowest payers in your industry. As soon as a job with better pay comes along, your employees aren’t going to think twice about taking it.
Matching industry wages is key to retaining employees, but it’s not just about direct compensation. Throwing in bonuses, profit-sharing schemes, and stock-based compensation will go a long way to keeping your workers loyal.
2. Inadequate Career Progression Opportunities
Once employees are competitively compensated, you’d think they’d be content and focus on their shifts. But no, they want to advance in their careers just as much as they want good pay.
If your employees are staying in their roles for years before moving upwards, they aren’t going to sit still. They’ll be scouring the web for jobs in organizations that promise better career progression prospects.
As a small business, it’s understandable that there’s only so much you can do to help your employees advance in their careers. Unless the business expands, you aren’t going to create senior roles out of nowhere.
However, career progression isn’t only about climbing the career ladder in the workplace. It can also come in terms of professional and occupational development. For example, investing in training programs helps upskill your employees. This makes them more prepared for bigger roles, and, for the time being, can help reduce employee turnover.
3. Poor Engagement
Employee engagement can mean different things depending on the context. But in the context of turnover, it means employees believing in your company’s mission and purpose.
Even as an employer or business owner, you wouldn’t be very dedicated to your own company if you didn’t believe in what it’s trying to achieve. Not just the profits, but the broader goal of creating or inspiring change. So, you can imagine just how disinterested your employees would be if they didn’t believe in your mission.
Firing up employee engagement starts with articulating your company’s mission, followed by taking practical steps towards it.
Keep Employee Turnover Low
High employee turnover increases the cost of doing business. It’s crucial that you address it before it causes irreparable damage. These are some of the top causes of high turnover, so you now have an idea of where to start.
Browse our business section for more workplace advice.
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