In business, two things are certain: taxes and employee departure.
It’s inevitable that even your most loyal employees will leave at some point. There isn’t much you can do to prevent this, but if a lot more employees are leaving within a certain period, you have to act.
A high employee turnover rate will increase your recruitment and operating costs and give your company a bad image. To reduce employee turnover, though, the first step is to know why they’re leaving.
Read on for a list of possible reasons behind your company’s high worker turnover rate and the remedies you can pursue.
1. Toxic Company Culture
Poor company culture is a leading cause of high employee turnover. A recent study established that the probability of high turnover in an organization with a poor culture is a staggering 48.4 percent.
But what constitutes bad or toxic company culture? It’s a mixture of hostile workplace policies, bad management methods, and other unhealthy practices that fuel conflict among workers.
As an employer, you really have no choice but to build a positive organizational culture where all your employees are treated equally and with respect. Ensure your policies enhance transparency and fairness. A positive culture will not only make it easier for your company to attract the best talent but also boost your employee retention efforts.
2. Inadequate Career Development Opportunities
Every employee wants to advance in their career. They want to take on greater responsibilities and increase their compensation.
Yet, career stagnation is a supper common issue among workers. If an employee feels like they aren’t progressing in your company, they’ll start looking for career advancement opportunities in other firms. So, if your firm isn’t offering adequate avenues for career progression, you may see an increasing number of employees quitting.
It’s understandable that, as a small business, your resources are limited. If you aren’t expanding quickly enough, you can only provide so many career advancement opportunities.
But, there should be a deliberate effort to support your employees’ advancement goals. For example, make promotions from within and even sponsor some of your employees to further their education.
3. Work-Life Imbalance
Over 70 percent of job seekers consider work-life balance an important factor when evaluating job offers. It’s not surprising that your employees would be forced into reconsidering their position if they’re struggling to maintain a healthy work-life balance in your organization.
You have the power to help your employees strike a better balance between their work life and life away from work. The old, toxic mentality that it’s a worker’s sole responsibility to plan for their personal lives has no place in today’s modern workplace.
If your company isn’t fully remote, offer plenty of opportunities for remote work. Paid vacations go a long way too, and encourage employees to utilize them.
Implementing an employee wellness program is another high-impact way to enhance their work-life balance. Consult a professional like Woliba to help you design a program that works.
High Employee Turnover Rate Is Bad for Business
Your employees are a valuable resource, without which your business will grind to a halt. While they’ll always come and go, the hallmark of a great company is its ability to hold on to its best talent. A high employee turnover rate will ruin your business.
Having read this article, you now know why employees leave, as well as how to fix the problem.
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