Why Employees are leaving you?

If you’ve ever wondered why employees unexpectedly leave for another job, you’re not alone. It’s a common problem in just about every type of business. How can you reduce employee turnover and improve employee retention?

 First, we’ll briefly explain why retention issues happen and the surprising scope of the problem. Then you’ll learn proven strategies for successfully managing turnover.

3/5 people who leave their job don’t get fired or laid off—they quit

Too often, people walk away not because a great opportunity has appeared, but because they are unhappy where they are. If they aren’t consistently given the attention and resources they need to thrive, they’ll struggle to be successful. Instead, they may become frustrated, give up, and leave. That failure is not what you want, and it’s certainly not what they want.

What does it cost when they leave you?

The costs of employee turnover are high. Some costs can be measured in dollars, such as recruiting and onboarding a replacement. Estimates of those expenses vary. One study by SHRM finds that replacing a salaried employee typically costs 60-90% of that person’s annual salary. Other research suggests those numbers could be even higher. 

Other cash costs of turnover may include lost clients and revenue, as well as overtime expenses for other employees who do extra work until a replacement can be found. As you can see, successfully managing turnover and improving employee retention can save you lots of money. But when you tally the expenses of turnover, it’s not only about cold, hard cash.

There are many other indirect costs that could be painful. Among them: 

·      Lower employee morale and reduced engagement

·      Increased workload and decreased productivity

·      The permanent loss of institutional knowledge when a key person leaves

·      Increased absenteeism and burnout

 That’s quite a list. But now that you have a better idea of what you’re up against, let’s focus on solutions. Fortunately, managing turnover effectively and reducing employee retention problems can be simpler than you may think.

 8 Strategies to reduce employee turnover

Great news: the retention strategies that will benefit you and your business are also good for your employees. Everybody wins! A well-rounded game plan for successfully managing turnover can help everyone in your business from new hires to seasoned pros. As engagement and job satisfaction grow, productivity and employee retention improve—and issues like burnout diminish.

1.Right person Right role

 If your company makes widgets, don’t rush to hire the first applicant who walks in the door with widget-making experience. Having the needed job skills is essential, of course—but it’s only part of what makes someone a good fit for your firm.

 Finding the right fit means matching a candidate’s values, desires, and goals with your company’s goals, needs, and culture.

Mutual success and satisfaction naturally follow when an individual aligns with their position and the company’s overall needs. Chances are such people will be more engaged, more productive, and less likely to look for another job.

 It may take a little longer to find a candidate who’s a good fit, but it’s one of the most important things you can do for both their long-term satisfaction and yours. As best-selling business author Jim Collins says,

“You absolutely must have the discipline not to hire until you find the right people.”

 Another point that is often overlooked: don’t forget how important fit is for employees who have been with you for years. Just as your company continues to evolve, your people do too. Sometimes a position that used to be a great fit for an employee no longer is. Watch for this situation and do something about it before you lose a valued worker.

2. Get smart with your onboarding

Getting your new employees off to a good start helps them go the distance. According to The Wynhurst Group,

“new employees who went through a structured onboarding program were 58% more likely to be with the organization after three years.”

 Thoughtfully planned onboarding helps a new person have a great experience with your company from day one. But helping them succeed requires more than just making a good first impression. It calls for a personalized onboarding process that is tailored to the individual’s needs, role, and performance goals. In a nutshell, during their first weeks and months in your company you help them grow and show them how. 

In their book, onboarding experts George Bradt and Mary Vonnegut identify three essential steps for doing this:

·      Accommodate. Give new employees everything they need to do their job well.

·      Assimilate. Make sure new hires are told clearly and completely what their

responsibilities are. Also, help them learn about your culture and how to fit in.

·      Accelerate. New employees need help getting up to speed. Put yourself in their

shoes and think about what you would need to improve the quantity and quality

of your work.

3. Recognise and Reward your Employees Appropriately

It’s human nature: we like to do things that we are rewarded for. And who doesn’t enjoy being appreciated? Rewards and recognition show your people exactly what your company values about their behaviour and help guide them to success—fostering job satisfaction and loyalty. Here are pointers for recognizing and rewarding your people in meaningful ways:

 Keep your eyes open. Constantly look for people who do a great job as well as those who go above and beyond when an exceptional challenge appears.

·      Be consistent and frequent. Regularly rewarding and recognizing employee achievements throughout the organization can ignite engagement, motivation, satisfaction, and performance.

·      Be sincere. Don’t diminish the value of employee recognition by giving praise and rewards that aren’t fully deserved. Employees will realize that this kind of recognition doesn’t mean much.

 ·      Think outside the cash box. Simply being recognized and praised can boost an employee’s self-esteem, especially when it happens in front of their colleagues. Use your imagination and use more than one reward whenever you can.

 Happy, appreciated employees are more likely to stay with you for the long haul. That’s why smart recognition strategies should be a high priority in your overall strategies to reduce turnover.

4. Keep a Pulse check on your culture

Research from LinkedIn shows that 70% of professionals would not work at a leading company with bad workplace culture. Culture plays an important role not just in attracting and hiring top talent, but also in retaining and engaging it.

 Culture is more than ping pong tables and free lunch. It’s centred around the core values of your organization. When your hiring strategy, internal policies, compensation structure, and performance reviews align with your core values, culture thrives.

 Company culture is constantly changing—and, as a result, it’s something to constantly measure and keep track of. Employee experience surveys or pulse surveys can support this, providing valuable insights into how employees feel about your company and areas where there are opportunities for improvement.

 While it may seem obvious, it can’t be overstated: It’s important to make sure you address issues that arise as a result of your employee experience surveys. Trust is at the foundation of culture. Your employees need to know they can trust you and rely on you to make necessary changes.

Without trust, your culture will be left up to chance.

5. Clear expectations and Performance Matrix

A common cause of turnover is unclear expectations and performance metrics. Your employees need to know what’s expected of them so they can meet goals and be held accountable.

 Unfortunately, roles too often become muddy. A hire is made and the job description is determined once they’re onboard. An employee’s role starts to morph without intentional time being taken to determine a clear career path. This role confusion makes it hard for the employee to know what they’re responsible for and, if pervasive, can lead to tension among team members. When roles and responsibilities are unclear, teammates begin to step on toes and the team dynamic suffers as a result.

 When employees know what’s expected of them, what’s within scope, and how they’re measured, they’re able to grow professionally.

Teams thrive with clear boundaries in place.

Managers can provide feedback supporting each employee in their career growth. Clear expectations and performance metrics also serve to reduce bias in how individuals are managed, contributing to a more equitable workplace.

6. Create a culture of transparency and all way feedback

One of the top 10 drivers of turnover intent, according to the 2019 Employee Engagement Report, relates to transparency. A negative response to the statement “Senior leaders have clearly explained the reasons behind the changes made in the organization” correlated strongly with employees’ intent to leave the company.

Your employees want to know what’s happening in your organization—and why. The less people know, the more they incorrectly assume. Alleviate your employees’ fears by being transparent about the goings-on of your organization. 

While not all decisions need to be made public knowledge, your employees should know the mission and vision of the company, the strategic initiatives, and any major structural changes that may be impending. Without this insight, it’s easy to assume the worst. After all, the status quo in most workplaces is numbers first, people second

In addition to organizational transparency, employees want to know where they stand with their managers.

The 2018 People Management Study found that 44% of managers appear to be giving not enough feedback—despite the fact they’d be better off erring on the side of too much feedback.

Getting in the habit of providing truthful, specific, positive, and actionable feedback regularly can increase employee engagement and decrease turnover.

7. Provide Clear Career Path

Are there clear career paths for your employees and opportunities for growth within the organization?

 Gartner’s Global Talent Monitor report found that 40% of departing employees were dissatisfied with their lack of future career development, ultimately leading them to leave the organization.

If your employees don’t have room to grow in their roles or within the organization, they’ll find opportunities elsewhere.

While some roles may have more linear career paths, such as a junior employee moving into a more senior role, not every position will be as easy to map out. Not every person wants to be a people manager. Some might want to manage projects, specialize in their role, or simply remain an individual contributor. The best way to determine your employees’ career goals is through regular professional development conversations. Make career pathing a part of these ongoing communications.

If you can’t create solid career paths, you can communicate new opportunities to internal candidates first and make sure you’re having regular career conversations with your direct reports.

8. Offer Learning and Development Opportunities

A survey conducted by LinkedIn found that 22% of professionals are motivated by opportunities to learn and grow.

Lack of learning and development (L&D) opportunities is also one of the top 10 drivers of turnover intent, according to the 2019 Employee Engagement Report.  

Whether it’s through curriculum development from an in-house L&D team, conference attendance, or taking online courses, support your employees in their career growth by offering opportunities for them to learn and develop new skills—and encourage them to do so. Not only will this increase your employee’s engagement, but you’ll also end up with more skilled workers. 

When it comes to employee development, look beyond the skills needed to fulfil their current role. Consider their career aspirations and the hard and soft skills it will take for them to get there. Work with your employees to develop learning plans that will help them grow both personally and professionally. Make talking about learning and development a regular part of your one-on-one meetings with direct reports.

In Conclusion

 Taken together, these tips can help your employees feel valued and ensure they take pride in their skills and knowledge. When you do this, you will find that people will start to share their insights and ideas, and become loyal to your company rather than to their salary.

 How do you instill a sense of pride in your employees? Lay out your company goals and communicate honestly with them about the challenges your business is facing. When you let employees know that the company needs them for important tasks that only they can perform successfully, they will rise to the occasion.

Often what managers feel will motivate, inspire, and retain their employees is very different than what actually motivates employees. Instead of assuming you know what employees care about, ask them what will motivate, retain or instil pride in them. This will give you insights into employees’ non-financial intrinsic motivations, which can be far more effective levers than money.

Book a strategy session today to discuss your employee engagement needs.

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