Good employees leave jobs sometimes. There are ways, however, to combat employee retention problems.
Employee turnover is expensive. Every time someone leaves your company, they take their knowledge and expertise with them.
Finding, hiring, and training a new employee is costly and time consuming. The average small business goes through 86 applicants before finding the right person. Even when you find a replacement for a former employee, they don’t have the same knowledge and expertise.
To cut down on the number of employees who quit, understand why employees leave. You can do this by conducting regular feedback conversations with your current employees and exit interviews with leaving employees.
7 Common Problems That Cause Employees to Quit
Better Wages and Benefits Elsewhere
All employees will be tempted to leave if they find a better wage and benefit package somewhere else.
If you don’t offer many benefits to hourly employees, they’ll especially be tempted by better wages. They have little to nothing to lose by walking away from your company.
If you notice that you’re losing several employees to better wage and benefit packages, consider offering more benefits and inexpensive perks to entice your employees to stick around. You might also want to consider whether you’re underpaying your employees.
Future Career Opportunities
Employees may also leave if they don’t think they have many future opportunities within your company.
70% of employees are unhappy with future career opportunities at their current organization. Their satisfaction with their current job increased, however, as they started to see more opportunities for title advances.
You can combat employees leaving for future career opportunities by providing career growth opportunities, including development and learning opportunities.
Disengagement and Boredom
Per Gallup, only about 30% of employees are engaged at work, and about 24% are actively disengaged. Employers with disengaged employees experience 30% to 50% higher turnover rates than other companies.
Employees may also quit if they’re bored at work. Boredom can be caused by not having enough work available, assignments that aren’t challenging, or if the employees isn’t using their skillset.
Lack of Recognition
Being recognized for a job well done is crucial for employee retention, and simply recognizing employees’ hard work is one of the easiest and most cost-effective ways to improve retention.
Provide frequent and timely recognition to ensure your employees’ hard work is recognized in the moment. Be specific with your recognition, as it provides an example for each employee to repeat and emulate.
As part of your recognition, show how your employees’ work contributes to the overall goal and mission of your company.
Lack of Trust
If you refuse to share information with your employees unless it’s absolutely necessary, you’re showing you don’t trust your employees.
If your employees think you don’t trust them, they’re more likely to leave for an employer who does.
You should be able to trust your employees to do the job they’re hired for, and your employees should trust you to operate fairly and ethically and provide the tools they need to do their jobs.
Information is one of the tools your employees expect you to provide. Your employees should feel like they have all the information they need to make decisions.
To show your employees you trust them, focus on transparency. Instead of asking “Is it absolutely necessary to share this information from my employees?”, ask yourself, “Is it absolutely necessary to keep this information from my employees?”
Nobody likes to be micromanaged, and no leader plans to become a micromanager – it just happens. Learn to recognize it in yourself and your company’s supervisors, so you can fix it.
Focus on collaboration and encourage your employees to claim ownership of their work. This embraces autonomy and inspires a greater sense of purpose.
Every team will have the occasional conflict, but constant problems will cause your employees to leave.
Constant conflict can lead to greater absenteeism and will eventually cause your employees to quit to avoid the negativity.