The Main Reasons For High Turnover... and Solutions to Help

If an organization's culture produces a high turnover rate, the result is excessive recruitment and training costs. Research shows that employers spend up to 30 percent of the average employee annual salary for each turnover.

This means for every position that pays $10 an hour, it could cost around $3,000 to hire and train someone new. TweetThis!

High turnover also puts extra strain and responsibilities on others and creates an atmosphere of insecurity and negativity. This could lead to even a higher number of turnovers in an organization which risks damaging its public reputation. Also, don't assume that salary is the number one reason why people job hop.  Research shows that 88 percent of people cite another reason as the main cause.

With people being one of the largest business expense, it makes sense to understand the reasons they leave your organization.

Five Top Reasons for Employee Turnover

1. Negative Relationship with Management

Many bad managers are the result of bad managers. This cycle continues when proper communication and leadership tools are not passed down in an organization. One of the most common reasons for frustration with one's manager is consistent lack of feedback and coaching. This lack of guidance places stress on employees who do not feel as if their work is valuable.

2. Lack of Trust in Organization

Research shows that only 39 percent of employees trust that their senior management cares about their well-being. Employees also develop a mistrust when they see antiquated policies used without evaluation. Many employees do not feel as if they have a safe avenue to suggest alternatives to procedures, or believe their opinion matters.

3. Little Room for Growth

If a person feels the only way to move up and progress in their career is to look outside of the company, they will. They also can get lost in the mission of efficiency: feeling as if they're employed to "just do" rather than think. Established mentorship programs and career path opportunities help employees flourish. They will not feel trapped in a position if they have the opportunity to learn and grow their professional lives.

4. Job Doesn't Match Description

A large percentage of turnover happens in the first six months when the job that was agreed upon does not reflect the work assigned. When the job is not as promised, an employee becomes distrusting of the employer. Companies need to evaluate positions on a regular basis to make sure the positions are  accurately described and changes are understood.

5. No Incentives, Except at the Manager Level

The antithesis of an incentive is to work hard so someone else gets the credit. A paycheck is not incentive enough to engage employees in hard work. While many company leaders have trained their managers to recognize employee anniversaries, they will also benefit from implementing programs that recognize achievements.

Research supports this by showing that employee achievement programs create:

  • Trusting work environments
  • Positive cultures
  • Significant reduction in the cost of employee turnover and recruitment

Finally....

Show  your commitment to your employees with training programs, recognition initiatives, and defined goals.

Make your business culture one of your biggest selling points by cutting turnover traps and working to build a trusting and productive atmosphere.  

Establish a culture of engagement so you can focus on business goals rather than recruitment and training.

 

Total Recognition Checklist

Topics: Total Recognition, Employee Engagement, Employee Engagement Strategies

Michelle Grose

About the Author
Michelle Grose

Michelle comes to C.A. Short Company with six years of marketing and communication experience, specializing in digital marketing, as well as content creation. She holds a BA from North Carolina State University and an MA from Baylor University, where she focused on journalism and new media... READ MORE


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