In Finance, you see how the negative effects of employee turnover can impact your daily operations and your bottom line.
When employees leave, it has a domino effect on the rest of the company, explains Danny Nelms of Work Institute. It can “knock down” efficiency, morale, even overall quality of work.
And over time, turnover is becoming more difficult for companies to tackle. Research says one in four staffers will leave their current job within the next year – and cost companies a whopping $6 billion.
4 reasons they leave
To keep your all-stars around, you’ll want to know the typical reasons employees leave and get out in front of them.
Here are some common, preventable reasons good people head for the door that you and other managers should look for:
1. Lack of career development. When employees feel like there’s no room to grow or new skills to learn, they can become discouraged or bored.
You can take a two-pronged approach to combat this one.
First, be sure your performance reviews include career development plans. And during reviews, make growth a big topic of conversation. Ask questions like: “What aspect of your job would you like to focus on more?” or “How do you see your role expanding in the company? What can we do to get you there?”
Second, take a deeper look into continuing education (speakers, seminars, training courses, etc.) as a retention tactic. If employees are engaged and excited about work, they won’t look toward the door.
2. No work-life balance. Life’s hectic. And employees who feel their job takes more than its fair share of time and energy may begin looking for other, more cooperative opportunities.
If your company hasn’t already, you may want to consider offering flex hours or remote work options. It doesn’t have to entail a complete overhaul of your operations. But if coming in 7-4 instead of 8-5 or working from home once a week will make employees’ lives easier, it could help retain them.
3. Personal reasons. Sometimes, employees may need more flexibility or time to deal with medical, family or other personal issues.
That’s why it’s beneficial to always have a pulse on your team’s lives outside of work, even if it’s just checking in with questions like “How’s the family?” and “Everything good?” Not only does it show you care, it gives employees an opportunity to speak up if there is an issue.
And when issues do arise, show you’re there to help. A brief complication isn’t worth losing a great employee forever. You can even pull in HR to talk about temporary adjustments that could make the situation more manageable for everyone.
4. Subpar compensation and benefits. No surprise, many staffers leave positions because the salary and perks aren’t cutting it for them.
You have key insight into your company’s financial standings, so you know when’s a good time to allot for a small raise or bonus for hardworking employees.
In terms of benefits, make sure employees are educated on and see the monetary value of what your company offers. Help them understand and take advantage of all that’s available – retirement plans, health insurance, tuition assistance, etc.
And when there’s just no room in the budget for bigger bonuses or more perks? Find other ways to compensate employees, whether that’s bringing in coffee one morning or letting them leave early on Fridays. Sprinkling in those gestures regularly can go a long way to bolster morale and keep employees happy right where they are.
