Why does employee turnover occur

Employees have high expectations for rewards, which goes beyond compensation. They want to feel empowered and engaged with their work. Total rewards programs make that happen. Having this information in personalized statements gives employees instant insight into everything their employer has to offer. Plus, it makes employees feel happy that they have an employer who cares about their needs, making them more productive and more likely to stay with the company long-term.

There are many causes of employee turnover, but companies that focus on keeping their teams happy, satisfied and engaged will have a more productive workforce that stays longer. Implementing a total rewards program that encompasses all the compensation and benefits available to employees is essential to retention. Contact us to learn more about this essential tool for employee retention. Employee turnover—the rate of losing and replacing talent—has always been an issue for companies, and the pandemic has only made it worse.

This blog goes over the eight causes of employee turnover and how to improve retention. But what most bosses fail to understand is that even an outstandingly good onboarding process will not make your employees stay if the learning opportunities don't continue.

Often, we don't realize that even the old-timers need constant training and development opportunities. The onboarding processes of companies like Facebook is almost legendary because it starts prepping their new hires even before their first day at work.

Without effective means to keep up with the growing economy, their skillset becomes stagnant. Expertise improves the quality of the work and ultimately helps in reducing the annual turnover rate. Initial training efforts will cost you some amount of time and money.

But once the employee gets skilled in their respective roles, they can provide you with better business results. It reduces the frustration level of both- the employee and the employer.

Firstly, seek out to implement proper training and planning for your employees. Determine what kind of training is needed. Determine who needs to be trained. Know the best resources to provide training with. About what period of time will the training be provided. Draw up a detailed blueprint. At the start of the year, it is easier for them to access any learning resources like online educational programs. Also called e-learning, this gives the advantage of being faster, easier to access, and more user-friendly than traditional training practices.

According to the Kapor Center for Social Impact study :. Nearly 40 percent of employees leave after experiencing unfairness and mistreatment related to their identity. Diversity is now more critical than ever. Employee turnover occurs when companies ignore the need for diversity in the workplace.

To improve retention, companies have got to start making profound changes in the work environment. It can be measures taken to close the wage gap or combating inappropriate conduct.

Facilitating workplace diversity may mean creating system-wide new policies. Allowing employees to take days off for religious holidays that may not be otherwise observed by the company. Offering on-site daycare for their children and extending the option for flexible work hours.

These are some of the many examples of diversity-friendly policies. Clear communication and follow-throughs are necessary to ensure the policies are effective. Employees should feel comfortable coming to their managers with any concerns, especially their treatment in the company due to their gender, ethnicity, sexuality, age, or other factors. Create dedicated diversity task forces with team members from every department for training.

Developing an efficient hiring process is very often neglected. Mainly because companies are so hard-pressed for time and resources that they want to fill in the vacant positions as soon as possible. With this short-term view, they throw strategic planning out the window and start interviewing candidates according to inconsistent processes and with a firm reliance on gut reactions.

This approach is a sure way recipe for high turnover. Share on linkedin. Share on email. This article will focus on answering the following key questions related to employee turnover: What is it? Why is it important that organizations keep track of it? What are some common contributing factors to employee turnover? Finally, how can companies effectively reduce employee turnover? What is Employee Turnover? Voluntary turnover occurs when an employee decides to leave the company.

This could be due to another job offer elsewhere, stressful working conditions, dissatisfaction with current wages, or other factors. Involuntary turnover is when a company terminates an employee because of poor performance, failure to abide by company policy, toxic behavior, or other reasons. Common Causes of High Employee Turnover While there are countless reasons why an employee may leave his or her current position, the following are common causes of employee turnover: Toxic Culture Employees that have to deal with rude coworkers, overbearing managers, a lack of work-life balance, and unreasonable deadlines day in and day out are much more likely to leave their company than employees that work in positive corporate cultures.

Lack of Empathy When employees feel that they are not being heard, they quickly lose motivation to give their best at their job. Lack of Advancement Opportunities Many employees are keenly interested in advancing their careers and are more than willing to do so with their current company. Inadequate Training Employees that are not properly trained, or in some cases not trained at all, will likely leave the company sooner rather than later.

How to Reduce Employee Turnover There are many cost-effective, even subtle ways that companies can reduce employee turnover. These include the following strategies: Foster a Winning Culture A positive, forward-looking company culture is one of the biggest contributors to employee satisfaction and will allow an organization to retain top-tier talent instead of losing productive workers to the competition.

Encourage Employee Feedback Since the vast majority of employees have a deep-seated need to be heard, wise employers will create opportunities for them to air their concerns, perhaps to their immediate supervisor, and even to senior management. Give Commendation Employees blossom with praise. Provide Exceptional Training A robust onboarding program, coupled with periodic refresher courses, will give employees the knowledge and confidence that they need to find satisfaction in their assigned duties.

These are crucial factors in retaining employees , especially for millennials joining the workforce. Typically the better the benefits, the lower the turnover rate. This holds true with offering a flexible schedule and tuition assistance.

Make sure to stay up to date on the competitive average salaries in your field and be generous with deserving employees, or it will only cost you when they leave. Good salary and benefits are not enough to keep your employees. If you want a low turnover rate, you must work on engaging your team.

Engagement tools will help you reach your employees and make them feel better about coming to work. In the context of engagement, take into account the overall employee experience.

Consider how your employees feel on a day-by-day basis while working for your company. This involves not only the overall company culture but also the tools and applications that they have to interact with daily.

Oftentimes, employees leave managers, not companies. There are many negative effects of bad management on employees and a high turnover rate is one of them. At the end of the day, you have a lot of say and control over what happens within your company.

If not, consider the fact that your team has even less power. Great management enhances the success of everyone on the team. Group Size: 15 — Time: Typical sessions vary from half-day, one-day or two day. How Encouraging Failure at Work Increases Employee Engagement Expecting that your employees will never fail can be demoralizing to the entire workforce and detrimental to the company culture.

When employees believe that failing at work is not an option, they become burned out and their engagement crumbles. Get to know each other as people, not just professionals. We have interests that may have drawn each of us to our roles and help us excel within them. There are easy team building icebreaker activities for work that will help you and your virtual team bond and get to know each other as more than co-workers.

Creating a strong workplace culture that encourages teamwork is essential for increasing productivity and improving employee engagement. Empathetic Leadership: The Key to Employee Retention Maintaining high retention rates is critical to the overall success of your business and long-term profitability. How Companies Can Give Back During the Holidays in The holiday season is fast approaching, and with it comes the opportunity to help those in need and give back to the community.

This is also a great opportunity for you to show your gratitude to those who have dedicated so much of their time and effort to furthering the success of your organization in the past year. It can be stressful to plan an office holiday party when you are down to the wire, so we have tools to help you plan your holiday party early, and keep you ahead of the game.

Check out the tips below to get started. You are at the company holiday party, and something embarrassing happens that makes everyone feel uncomfortable and uneasy. While you might think that virtual events would be exempt from such circumstances, the reality is that Zoom events have had their fair share of awkward moments. More often than not, modern-day leaders tend to care more about holding on to their titles and position and less about the quality of work and the team they are tasked with leading.

What Is Employee Turnover? Employee turnover is the percentage of workers who leave your organization, the employment relationship ends and they are replaced by someone new. Have some questions?

Need a quote? Contact us to get started. Tim Bond our mascot , as well as our sales team is standing by to plan your next event! Email: hello teambonding. Do you know somebody who would love to hear about TeamBonding?