Employee retention is something that many businesses struggle with, and higher turnover rates come along with that. According to the Bureau of Labor Statistics latest Job Openings and Labor Turnover Summary, approximately 3.5 million employees quit their jobs in April 2019 alone. Employee resignation requires businesses to fill that employee’s position quickly, which is stressful. Additionally, employee replacement comes at a cost to the business. A recent study by the Society of Human Resource Management (SHRM) discovered that the average cost per hire is around $4,000. This is costly because businesses have to spend time training the employee until they contribute to the ROI. Since turnover can be costly to your business financially and socially, you will want to try your best to keep your valued employees at your workplace. So, what are some reasons as to why your employees are leaving?
1. Relationships with colleagues
When you think about it, employees spend most of their time each week with their coworkers. This means that it’s incredibly important to establish good relationships in the workplace. Gallup’s recent study showed 2 out of 10 people said that it’s important to have a best friend at work. Friendships at work make employees engaged and motivated because they get to arrive to work each day, accomplishing goals with their friends. Workplace friendships boost morale and creates a supportive atmosphere. Without friendships and good relationships in the workplace, employees will feel isolated and will not have a sense of belonging. If your employees are missing connection, they may look elsewhere for work.
2. Lack of compensation
When a salary or hourly wage is not competitive enough, employees tend to look elsewhere for work. According to a Glassdoor study, 67% of job seekers find money the top motivator when looking for a job. Economic security plays a big factor when it comes to retention because employees want to be able to pay their bills, mortgage, and other things. If they aren’t making enough to get by, there is a strong chance that they will find other work. To avoid turnover, most companies will give employees raises as an incentive to stay. Raises give employees a bigger sense of security and motivation, which can in turn decrease the change that the employee will leave.
3. Burned out or stressed
A recent study by CareerBuilders mentions that 31% of employees have high-stress levels at work. Stress can lead to poor physical health and mental health. A study by Kronos found that approximately 56% of employees who were stressed looked for other jobs. If an employee is not feeling well physically and mentally because of work-related stress, they will become less engaged and productive, and will most likely find elsewhere to work.
4. Lack of recognition
Recognition is really important in the workplace. Yes, employees are there to do their daily duties, however, they want to feel encouraged and appreciated. In a recent 2018 study in the UK, 20% of participants said that increased recognition from their boss for their work and the contributions they make would make them happier in the workplace. When your employees are recognized for things like: learning new software, creating successful marketing plans, and getting certifications, they should be rewarded. As an employer you can decide how they should be rewarded. Will that employee get a shout-out at the next meeting? Will you give that employee a 3% raise? The possibilities are endless.
5. Lost opportunities to use their skills and advance
Employees want to develop their skills and create more opportunities. If they feel like they are plateauing, they will tend to look where they can advance their skills further. In 2018, a study showed that approximately 23% of employees felt as though their workplace was not helping them develop or advance their skills. When people feel like they aren’t living up to their potential or working towards their goals, they will find development at other workplaces.
6. Poor company culture
Employees aren’t looking for just a paycheck anymore; jobs need to have the whole package. When your business has a good company culture, your employees will be encouraged to come to work and stay at work. Having a culture where employees feel like work is a chore will discourage them from staying. According to Forbes, company culture can have many meanings, but it’s understood that company culture is about feeling a certain way at work. What does the environment/tone show others? Are you an accepting crowd? Do you empower employees?
What can you do to avoid employees leaving?
Be mindful about what your employees want out of a job besides a paycheck. Create a positive company culture, give employees raises when needed, allow employees to develop new skills, and avoid a stressful environment. According to to Globoforce, 84% of HR leaders say that employee recognition programs help employee engagement. If you don’t have a program yet, start by keeping track of employee progress and creating annual reviews. Timesheets.com has a great HR tool that will allow you to store employee performance reviews, general notes, notes about accomplishments, and more. Once you look at your records, you can decide when your employee should be recognized for their hard work.