People come and go ... and while it is normal to see some employees leave a company, a high employee turnover can have a severe negative impact on your company, both financially and emotionally.
Why is the problem serious?
An employee leaving the company affects:
Productivity. When somebody leaves, other employees will have to take on additional duties, even if it is for a short while. This leads to a significant productivity downturn.
Money. According to the study of the Center for American Progress, the average cost of a highly-skilled employee leaving the company constitutes up to 213% of their annual compensation.
Time. It takes even more time and resources to find a suitable replacement for the former employee. You have to spend time and money advertising, interviewing, and training those new employees.
And most of all Morale: when someone leaves the team, it can be hard for the people that were close to them to find a new rythm and engagement and team morale will take a hit.
Causes of high employee turnover
The following are the most common reasons for a high employee turnover:
A mismatch of the employee's skills and the job duties. Employees who are placed in jobs that are too difficult for them are likely to feel stressed and quit.
Inadequate working conditions. If working conditions are substandard or the necessary facilities, such as proper lighting, furniture, restrooms and other health and safety provisions, are absent, employees will not be willing stay for long.
Lack of opportunities to grow. It is very important to put out precise and accurate job descriptions from start. If the job is basically a dead-end proposition with no opportunity to grow and develop, employees should be informed before bringing them aboard.
**Feelings of not being included.** Inclusion at the workplace gives the employees a sense of safety, uniqueness and relevance. If inclusivity is lacking in the company, it increases the rate of employee turnover significantly.
If your company’s employee turnover can be attributed to one or more of the factors above, it is very important to take the necessary steps to address the problem.
Getting your tea, to remain with your company is not as hard as it seems. Start by identifying the positive aspects of the workplace culture and setup that make employees want to stay, and build on those aspects.
Trade on your strong points. Make everything possible to create fulfilling and rewarding working conditions for your employees.