In a recent study by Rasmussen Reports, 27% of employed adults say they are looking for jobs outside their current company. While this is troubling news in general, it is particularly disturbing when you consider the weak job market. The U.S. Bureau of Labor Statistics is currently reporting a 9.6% unemployment rate in the country.
Preventing employee turnover is one of the bigger challenges faced by businesses today. A helpful tool to calculate the fiscal cost of employee turnover is this cost of turnover calculator courtesy of Caliper. This tool puts a monetary cost to your company’s turnover, but there is no way to measure the exact cost.
LeBron James left the Cleveland Cavaliers this summer. What is the employee turnover cost there? The employees you lose may include your most talented. Aren’t they the most likely to find better work in this tough economy? Fortunately, there are actions business owners can take to boost employee retention.
In a job satisfaction study by the Society for Human Resource Management, employees ranked compensation as less important than job-specific training. In fact, compensation is way down the list. I attribute this to the current recession, but I digress.
So what is the top reason for employee turnover? The highest contributing factor to employee turnover is employee dissatisfaction in the workplace. Most of an adult’s life is spent at work so it is not surprising that work conditions greatly influence the employee.
Employee dissatisfaction can typically be linked to low work morale stemming from feeling unappreciated, problems with company personnel, or simply lacking a sense of purpose. If you specifically want to know why your employees are leaving, consider conducting exit interviews.
Lack of leadership is usually to blame for poor morale in the workplace. Studies of people who quit their jobs cite problems with a direct supervisor as the most common reason for employee attrition. The issue, especially in small businesses, is that not enough value is put into leadership. A good leader will have a bond with their staff.
It is a good idea to meet with each member of your staff once or twice a month to see how they are doing and provide guidance. Motivation of employees is important. In addition to boosting morale, regularly meeting with staff members helps supervisors keep track of what each employee is up to. Team lunches and company events are other good ways to build bonds with your employees and boost morale.
Do not be afraid to be creative. Issue a 5-on-5 challenge to the marketing team or organize a charity fashion show. The possibilities are endless.
This bond supervisors forge with their staff is not established overnight, but the effort put into establishing this relationship is minimal compared to the effort and cost it would take to train new employees.
Having said all this, there is still the risk of employees leaving for personal reasons such as staying home to raise children, tending to a sick relative, deciding to go back to school, relocation due to marriage, etc. There are also times when the employee simply receives an offer your company cannot match.
In any event, it is best to part on good terms. Who knows what the future holds? One day you may be working together again.
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