Turnover is a reality and a big concern for executives in today’s world. The costs of turnover can be detrimental – from lost productivity to the time it takes to hire and onboard a new employee. In a study conducted by the Center for America Progress, the actual cost of losing a highly trained employee making $120,000 a year could be a true loss up to over $255,000 to the company (213% of the salary).
With that in mind, I found this employee retention report by TINYpulse, which surveyed 400 full-time U.S. employees. Let explore the reasons employees leave their jobs and address what you can do to make sure turnover doesn’t become a trend in your workplace.
Relationship with supervisor
28% of micromanaged employees are more likely to think about a new job.
As the old saying goes, people leave managers, not companies. The study found that employee job satisfaction correlated with the employees’ ability to have independence in the workplace. Employees want the ability to make decisions on how to do their jobs. In addition, employees were 68% more likely to think about a new job if they had a disrespectful manager. To add fuel to the fire, employees with low levels of peer recognition are 11% less likely to stay at their current job.
Tip: Provide your employees an opportunity to use their skills and abilities, giving them a sense of accomplishment and pride in the workplace. Empowering employees and providing a sense of autonomy or decision-making power, while recognizing job performance in the process can go a long way.
Lack of advancement opportunities
Employees are 10% more likely to stay with their organization if there are professional growth opportunities.
The study showed that professional development and training access impact employee retention. Professional development is growing ever more crucial. If an employee can’t see their growth potential in your current organization, they are likely to look elsewhere.
Tip: Make sure that your employees are in a constant state of learning. Create a growth plan for each employee. Whether that is through coaching, supporting training and development with tuition assistance, providing simple feedback or chances to visit conferences, professional development opportunities can be a deciding factor in whether or not an employee stays in their position if other advancement opportunities such as job promotions are not currently available.
Negative work-life balance
31% of burnt out employees are more likely to leave their job.
We all know that our jobs can be demanding, requiring us to work at nights and even on weekends sometimes. In fact, in today’s day and age, it is now expected. Add in company changes like a restructuring or growing demands from management, your employee is likely to burn out, leaving your employee no choice but to choose between their personal life and career. A positive work-life balance can lead to a 12% lower chance of attrition.
Tip: Allow flexible work arrangements such as working from home options or flexible work hours. Implement a “be where you need to be culture” allowing employees autonomy in where and how they complete the work. Additionally, encouraging employees to use PTO makes them 13% more likely to stay. As an added bonus, implement small perks like gym memberships, weekend “staycation” deals or even small comforts such as snacks and free meals. For individuals working beyond the typical 40 hour week, especially for those that travel, benefits like these can really help your employee maintain and upkeep their personal life, causing less stress and more productivity.
Poor corporate culture
Employees are 40% less likely to think about a new job if there is a positive work culture
Your overall culture keeps employees – or pushes them away. The study showed that 12% of employees were less likely to see themselves staying at their job if they did not fit culturally. While it is not easy to define and articulate, culture matters becuase it influences the work experience. Positive work experiences and peer relationships can help make a demanding job manageable.
Tip: Build relationships with coworkers and your teams to build peer respect. Provide perks that demonstrate caring and respect. Companies that implement activities and team building have a 10% higher chance of retention. Additionally, get back to basics. Establish your employee value proposition and create an employee engagement strategy providing experiential activities surrounding the corporate culture, mission, vision, etc… To be truly successful, your corporate culture must be reflected in every aspect of the employee experience.
FINAL THOUGHT: Lack of salary growth
The study seemed to miss one reason employees leave their job, which I find is worth mentioning…COMPENSATION. You can have a great relationship with your employer and receive good benefits, but without compensation over an elongated period of time, employees will consider leaving if a higher paying position comes around. In the end, money may not be the first reason why employees leave an organization, but employers should consider offering competitive compensation packages and utilize career conversations to outline growth strategies/timelines that encompass plans for salary growth.