Why are so many people quitting their jobs?
Andre Fangueiro
Head of Design @ Tietoevry | Owner @ Human-lab | Author The Human Potential Playbook
In a time where millennials are taking over the workforce, the coined term of “company loyalty” doesn't carry the same weight as it did in the past. We went from the norm of spending decades climbing the ladder at the same company to switching jobs every few years. But why is there this shift in the job market? Many state it helps them build their credentials, while at the same time allows them to re-focus on interesting projects.
One of the biggest reasons however seems to be that people now simply have more options. Where before you might continue to invest your time working for a company where you didn't learn or earn, the reality is that you no longer need to.
Which makes it even more important for companies to realize:
In a job market where it is becoming harder to attract and maintain talent, employment is becoming a dance of two equal partners. Hiring managers and HR have to realize that a career is a working relationship, with an emphasis on relationship. It takes 2 to have a functional relationship, not just the employee.
We have probably all experienced one-sided relationship in our careers. Companies ask a lot of their employees; working additional hours, deal with short deadlines, and a lot of pressure while expecting commitment and loyalty. But in return, the company often lacks in reciprocating that loyalty and commitment with limited to no focus for employee appreciation and no attention for their development and personal needs.
Turnover is part of the game. How you handle this, is the game-changer.
It has happened to us all: the bad break-up. Some relationships come to an end and how it ends sets the tone for many relationships to follow. Companies that foster the "traitor" and "good riddance" mentality often neglect to see that channeling that type of deflection can have a disastrous effect on many aspects of the company. It makes it easy to simply blame the person leaving for failed results, processes and foster power plays. More importantly, it creates a major roadblock for critical inward reflection in learning why people are leaving your company.
People who leave a company are not the enemy. They do so for a good reason for them and learning about that reason adds tremendous value to your company. Exit interviews?can provide invaluable insight into the employee perspective of your company and help determine whether your employee retention strategies need improvement.
Exits handled well can result in them becoming your future customers, references, industry contacts, friends, and maybe even your colleague again.
Why are your high-performing employees leaving?
The reality of today's job market is that your best employees will receive opportunities when they look for them. So understanding why they are leaving is an important aspect of employee retention.
Some of the most common reasons why employees seek new opportunities:
In my personal experience, as an employee, if you have 3 or more points marked on your list, you are ready to look for new opportunities.
When it comes to retention, managers make a difference
In most workplaces, managers have the power to control a variety of elements, such as culture & environment, clarity of vision, employees' perceptions of their roles & responsibilities, and providing?tools to increase employee success. Because of this, managers can have a big influence on employees wanting to stay or leave.
Managers that are in touch with their staff through regular communication, problem-solving feedback, and recognition can?drastically reduce turnover rates.
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As a manager, you have the power to prevent issues with employee retention by creating processes, systems, and requirements that will ensure employee needs are heard and met.
People first from bottom to top
While the job market in some industries and regions still favors employers, in recent years employees with in-demand talent likely won’t have to wait long to find a new opportunity.
The retention of your top talent is only possible if there is an open and transparent culture of employees first. This means a paradigm shift from a top-down culture to a bottom-up approach.
During my recent onboarding as Head of Design in Tietoevry, our CEO Kimmo Alkio spent a good hour answering questions and engaging with all the new employees. During this very inspiring hour, he presented an inverted pyramid where he was situated at the bottom of the pyramid as the support to the full organization. It was very inspiring to see a different mindset from a lot of my previous organizations. It included the thought that we are here to help you do your best job.
People first = no more box thinking
Many companies still work in the job box mindset. There are a number of job boxes to fill and an amount of employees that should fit in those boxes, regardless of their strengths or weaknesses. The decision of who fits where is often also made without the involvement of the employees. This often results in rigid hierarchies, waste of talent, and ultimately your employees not doing what they are great at and love.
People first = focus on growth
Many employees when mastering their job are ready to take on the next step or learn something new. Creating an organization that is focused on this and actively offers it, is a vital part of the people-first approach. A clear path to the next step or access to self-development can lead to better functioning teams, internal promotion, and also better retention. Those that grow together stay together.
People first = stability & transparancy
Anything solid needs a proper foundation. If decisions in a company are being made in an environment of uncertainty or with a lack of transparency, it will ultimately result in a lack of confidence with the employees.
People first = people first
What it ultimately comes down to is that for any relationship to work you need to invest in it. As mentioned above it takes two to tango. Understanding what your employees need is as vital as understanding what your customers need. Ensuring that you hear and understand their needs and have people-focused hiring and exit strategy in place will ultimately result in better satisfaction and retention.
Essentials in people-first retention strategy
Every company, regardless of size and industry, should focus on the retention of top talent.?Finding new talent is difficult enough as it is.?That means losing talent has a much larger impact.?The financial cost of losing an employee is steep.
How do you approach retention strategy in your company?
If you would like to share your thoughts or experiences on career challenges or have a further discussion please feel free to reach out.