Why maintaining is better than training: employee turnover cause and effect.
In a recent 2023 Gallup poll on employee retention, I couldn't help but take note of a rather alarming trend: a whopping 48% of U.S. employees are actively on the lookout for new job opportunities. It got me thinking deeply about the primary reasons behind these employee departures and the profound implications for businesses. Navigating this challenging landscape requires understanding the nuanced reasons behind employee turnover
Understanding the nuanced reasons behind employee turnover is crucial for employee retention. While factors like salary and benefits are up-front and obvious, the often-overlooked realm of management significantly impacts employee retention. Before delving into the grey areas of why management hit the top on many lists of why employees leave, let's quantify the costs of turnover.
According to Gallup report, it ranges from one-half to two times an employee's salary, encompassing expenses such as job advertising, hiring, training, increased salaries for new hires, productivity loss, and impacts on company culture and morale. With such a high cost at stake, it is understandable why maintaining is a far better option than re-training.
Let's dive into some less obvious reasons why employees decide to pack their bags:
Unclear Company Vision:
Employees seek value in contributing to the company's overarching vision. Effective management involves a clear understanding and communication of the company's vision, fostering employee satisfaction and alignment with a larger purpose.
Conflicting Workplace Policies:
Flexibility in work hours and locations is crucial for many employees and something I’ve come to appreciate. That is why I think management should accommodate and communicate effectively regarding scheduling, paid time off, and vacation policies to retain talent.
Need for Feedback and Valuation:
Regular communication and feedback are personal essential for employee confidence. In my experience I have seen it helpful for management to provide not only formal reviews but also weekly informal check-ins, showcasing a genuine commitment to employee growth and value.
Lack of Inspiration and Challenge:
Encouraging employees to evolve and take on challenges has been a guiding principle for me. That's why I believe employers should allocate time, resources, and budgets for continuous education, fostering inspiration and growth within the team.
Recognizing the importance of personal time for employees is key. Management should offer flexibility in scheduling, showing trust and respect for the work-life balance of their team.
As a small business owner or someone in a managerial role within a larger company, I've come to understand the pivotal role you play in the employee life cycle. Active engagement through effective communication is not just a strategy; it's a personal commitment. If time constraints ever hinder your ability to manage day-to-day operations, I believe West Slope Admin, with its outsourcing solutions, could be an invaluable resource, allowing you to allocate your time more efficiently. Prioritizing these management-related factors, from my personal experience, contributes significantly to employee retention and, ultimately, to the overall success of a business.