In an employees' market where jobs are plentiful and good talent is hard to find, high employee turnover rates can create serious problems for your company. Morale suffers when team members are forced to train new coworkers constantly or work long hours because the company is understaffed. Learning how to keep employees satisfied and on the job is key for meeting your corporate objectives.
Successful companies share many of the same smart HR policies. You have to recognize the importance of keeping your employees satisfied and happy as an important member of the team. As the most valuable corporate asset that any company possesses, employee turnover is costly in terms of corporate image and replacement costs.
Granted, some employee turnover is inevitable. Attrition can't be eliminated completely since team members retire, go back to school and relocate for family reasons. This type of turnover must be planned for and expected. Excessive turnover is the enemy and must be controlled if you expect your company to thrive.
A first step that you must take as an HR professional is to ensure high employee turnover rates to do not sabotage corporate success. You have to find out why valued team players are leaving. Until there is an understanding of why staff members are dissatisfied, then it is impossible to address the root problems.
Why Employees Leave
There are many reasons valued staff members leave. The challenge is to get some straight answers about what is causing employee turnover. Below are a few of the major reasons people decide to make a career move and leave.
1. No potential for growth
It's no surprise that your top talent will eventually leave a dead-end job. Ambitious and talented team members expect to get ahead in the workplace and to be rewarded for their hard work. Motivated by money and moving up the corporate ladder, your best staff members will not stay in a job that does not allow them to grow and prosper.
No one appreciates being overworked and forced to take time away from their family to spend more time at the office. That's why it is so important for you to keep employee turnover low. Having enough staff on the job is key for maintaining high levels of morale.
3. No feedback from managers or supervisors
Feedback is important for many reasons. If you want key team players to remain motivated and excited about the company, you must have a system in place to provide regular feedback. It is human nature to want to feel like you're appreciated and that you're on the right path. Your staff needs to feel like they are doing a good job. When people feel insecure about how they are performing, then they are more likely to leave.
4. Ineffective selection practices
Hiring a candidate who is not qualified for the job does a disservice to them and to the company. Good hiring practices require you to select new team members based on technical and personality factors. Based on the frustration levels associated with new struggling team members who are not suited to their job, poor hiring practices are a definite cause blamed for high turnover.
5. Poor relationship with supervisor or boss
One of the main reasons people leave their job is because they have a poor relationship with their boss. Working under a weak leader is a very difficult proposition for most people. Many team members feel forced to leave a bad situation with a boss they don't respect or like.
6. Staff members do not feel empowered to contribute
If you don't establish a corporate environment where your staff members feel like valued contributors who can make a difference, your turnover rate will be high. Considering how many hours we all spend at work, it is no surprise that staff members need to feel like their time is meaningful.
Team players like some autonomy. They need to make some decisions on their own. Micromanagers chase valuable staff members away.
HR strategies to lower employee turnover rates
Based on the reasons cited above for why your team members leave, there are some obvious ways to lower turnover rates. Below are some ideas to consider using.
1. Clearly identify and communicate a viable career growth path for all positions.
While it takes proper planning, company representatives should have a career to sell to ambitious candidates seeking a bright future. If you want to recruit and keep the best talent, it is crucial that you can paint a rosy picture of what they can expect from your company if they do an excellent job. Smart corporate professionals realize that the competition for top talent is steep.
2. Make work-life balance part of the corporate promise to team members.
One of the fastest ways to drive away excellent staff members is to overwork them. No one wants to feel exploited and like the company does not care about them as a human being with a life outside of the office. It is noteworthy that productivity usually suffers the more hours a team member works.
3. Show valued team members they are appreciated.
Feedback should be an ongoing communication between supervisors and their staff members. Additionally, it is equally important to reward superior productivity in the workplace with perks and special recognition. Companies like PerkNow
offer many special rewards to give out for high performers as a way to motivate and reward them for a job well done.
4. Hiring practices must be efficient and capable of recruiting excellent candidates.
There are proven recruiting, interviewing and evaluation techniques that should be used to ensure that the best candidates are hired. Poor hiring practices lead to high employee turnover numbers.
5. Team members must be empowered to make important decisions on their own.
Top talent expects to be treated as a valued contributor. If you want to keep the best and the brightest on the team, then you have to treat them with respect. That means you have to give them some autonomy. Trust is key for high achievers.
6. Pay competitive compensation and benefits.
It is important to know about competitors' compensation packages and benefits if your company wants to keep the best talent. While job satisfaction is not completely determined by pay rates, corporate leaders ignore this important factor at their own peril.
Any company who plans on keeping turnover low must follow some simple rules that have proven to work. Team members expect to be rewarded for work well done with promotions and perks. This common practice of giving away gift certificates and other rewards can make a lot of difference and help retain top contributors.