Why a High Staff Turnover is Bad for Business and How to Fix It
On paper, you may have the most successful business idea; however, to support it, you need a team of skilled and dedicated employees to bring your vision to life. Your staff is the backbone of your business operations and its important to get your people right. If your business is experiencing a high staff turnover, it’s time to take a closer look at your culture, company policies and model to make positive changes and nip this trend in the bud.
First, let’s take a look at why a high staff turnover can be bad for your company:
- Let’s start with monetary losses. The cost involved in hiring and training will be significantly high if employees keep resigning and the company has to start the process again.
- The lack of staff will affect productivity. With a team member gone, the work assigned to them will keep piling up. This, in turn, will affect the company’s revenues.
- In many cases, the work that was assigned to the ex-employee is passed on to another team member. While this may help check productivity loss, it also increases the team member’s workload.
- The team member will continue to be burdened with the extra work until a new employee is hired, trained, and ready to take over the role. This could cause dissatisfaction, resentment, and stress among the employees who have to take on the added responsibilities.
- The lack of experienced team members will also affect the team’s timelines when it comes to executing strategies that have been mapped out for the quarter or year.
- The company’s culture will also suffer if employee turnout remains high. Team members will be less inclined to forming work relations if they assume employees will quit soon. This could affect team morale, employee engagement, and work satisfaction.
Identifying the Problem:
It’s important to understand the motives behind employees choosing to leave a company. If you know the ‘Why’ of the problem, you will be in a better position to craft strategies that discourage employee resignations.
Here are some common reasons why employees jump ship:
- According to a survey conducted in New Zealand in 2018, the leading reason employee’s gave for their resignation is family and personal circumstances.
- The lack of opportunities available in a company was also one of the reasons. The employees picked a job offer that gave them a promotion or offered them a considerably better position.
- Many employees were also looking for an increase in salary and opted to change jobs when a lucrative offer came around.
- Parental leave was also a reason cited.
- A significant number of employees quit because of the commute time between their home and workplace.
- The idea ‘employees leave managers, not companies’ was also reflected in the results; many employees said they resigned because of the quality of management in the company.
What You Can Do to Reduce Staff Turnover:
Investing in a skilled and experienced workforce is as rewarding as it is expensive. These people run your company and are the face of your brand; retaining this talent is therefore essential to the company’s success. If employees resigning is a norm in your company, you need to work with your human resources department to design and implement policies and strategies that will foster employee loyalty, trust, increase job satisfaction, and increase employee retention.
Here are a few ways this can be achieved:
- Hone your employees’ skills by investing in training and other professional development programs.
- Introduce employee wellness programs that focus on their health, help them manage stress, improve concentration, etc. Yoga and meditation sessions, a gym, etc. can be helpful.
- Make sure you show your employees your appreciation for their work by recognising their contribution.
- It is important that your employees see that they have a future in the company. Take a look at the team structure and ensure there are adequate growth and promotional opportunities.
- Money matters. It is one of the biggest motivational factors. Offer competitive salaries and conduct regular salary reviews.
- Offering employees benefits like work from home is also a good way of making the employees feel your company is flexible.
- Always be open to feedback. Your employees should feel comfortable communicating with you on work-related matters.
- Focus on ‘out of office’, fun activities too. A staff picnic or party, team building exercises, a company-sponsored marathon are good ways to unite your employees and spend time doing non-work related stuff.
- Offer your employees perks, a strong benefits package, bonuses, incentives, etc. This will encourage them to look forward to something else besides the regular pay slip.
- Ensure the workload you assign your employee is reasonable. Overburden them with work, targets, and deadlines will lead to burnout and dissatisfaction.
By understanding the main reasons for high staff turnover, you will be able to better protect your business from walking down the same road. When you tap into the human element of your people, higher engagement and productivity become the natural end result. Employees who are valued, seen, rewarded, challenged and treated as part of your work family, will be loyal to you and your business for years to come.