Best Practices - 8 #Startups #SMEs

A High Employee Turnover in any company is the consequence of Primary and Secondary reasons.

Primary reasons for a high employee turnover can be one of the following

1. Wrong / Desperate Hiring leading to filling of slots with non-performing / unstable candidates. (a high employee turnover rate creates a vicious spiralling cycle)
2. Poor Company Corporate Culture leading to deteriorating work environment (highly toxic), low employee morale (demotivated workforce), poor productivity (less effective work), lack of trust (between employees), unresolved workplace conflicts, discrimination/harassment/unfair treatment. (Company Reputation, Public Image is at stake here)

Secondary Reasons for employee turnover can be one or more of the following

1. Vision / Mission Non-alignment - lack of employees' attachment to the Company's Goals / Objectives - due to unclear and shifting company vision
2. Lack of Career Growth - lack of opportunities for vertical, horizontal, lateral moves - job not aligned with personal goals of the employee
3. Lack of Financial Growth due to low compensation structure leading to employees looking out for greener pastures
4. Lack of variety in Job - monotony (boring/repetitive) accompanied with lack of fulfilment and challenges
5. Personal Reasons - Marriage, Medical Reasons, Family Health, Higher Studies, Foreign Migration, Spouse Job Transfer, Maternity pressures, Industry shift, Relocation, Long/Difficult Commute
6. Stiff KPIs/KRAs/Targets leading to variable salary loss and poor performance - high pressure to meet unrealistic targets
7. Long working hours leading to high job stress resulting in burnouts, work life vs personal life imbalance
8. Ineffective and unreliable Management - slow decision making due to excessive bureaucracy
9. Attitude of supervisor / reporting manager - micromanagement and lack of autonomy leading to detachment of the reporting employees
10. Inability to address employee grievances - lack of a structured platform for employee feedback and contribution of ideas
11. Lack of opportunity for Training, Learning & Development - no mentoring/coaching platform for career counselling, career planning and continued education - no investment in employee growth, career paths, skills development
12. Absence of structured performance appraisal leading to inconsistent and unfair performance evaluations
13. Salary disparity between similar performing employees with similar experience/background due to poor compensation policies
14. Better work environment combined with higher package/level provided by the Competition Companies
15. Lack of a clear Job Description - frequent changes in Roles/Responsibilities leading to vague job expectations
16. Inconsistent / rigid / outdated implementation of Company policies
17. Absence of transparent and consistent Communication from Top Management - employees are kept in the dark with no access to necessary information - leading to lack of trust in leadership
18. Disillusionment with the Company's performance / financial instability / dismal Industry feedback
19. Lack of performance incentives / recognition / appreciation for achievements will lead to employee dissatisfaction
20. Frequent restructuring, re-engineering, reorganisation, changes of/by the management in the company
21. Lack of Employee engagement programs, activities, events - leading to no sense of belonging or community / team spirit / empowerment
22. Poor ethical standards and malpractices by the Top management leading to lack of alignment with company's poor values
23. Lack of Job Security due to frequent layoffs of non performing employees or downsizing due to unstable company performance
24. Lack of Employee Benefits, Allowances, Facilities - no flexible working arrangements
25. Job expectations becoming too demanding leading to unfair workload distribution, long/inflexible working hours without adequate compensation for overtime
26. Absence of structured On Boarding process - creating a cultural misfit with the company further leading to employee disillusionment after joining
27. Inadequate Resources and Tools for effective and efficient Job Performance - creating a sense of helplessness in the employee
28. Lack of Inclusion, Diversity, Equity and Accessibility in the Company Values leads to absence of Alignment, Belonging and Integration of employees to the mainstream of the company

It is prudent and critical to first address the 2 Primary Reasons of Employee Turnover prior to addressing the 28 Secondary Reasons. Every issue need to be properly identified and remedies need to be taken to mitigate the issue.

This is how a Startup or SME needs to address a high Employee Turnover issue.