During the most recent recession, people who weren’t laid off stayed put at their jobs, clinging on for dear life. However, as the economy has picked up steam, more companies are hiring again and, thus, more people are jumping ship. Still, the effects of turnover on a business can be quite costly. Studies indicate that replacing an employee costs anywhere from 20% of an employee’s pay for hourly, low-skilled work, to a couple year’s salary for senior-level executives. So churning through employees at any level can cost quite a heap of money. If you’re a manager or an executive, how can you keep your workplace turnover low? Recognize that people change jobs because of a pull – the lure of an offer elsewhere, or a push – a reason to get out of where they are now (it’s often a combination of both). Of course, you can’t control the pull, only the push. By being aware of the common issues, which we list below, you have a better chance of keeping your best employees for the long-haul. You Well, maybe not “you” in particular. But a major reason employees leave companies is because of superiors. Ever heard the old adage, “People don’t quit their jobs, they quit their bosses?” That couldn’t be more true. Having a lousy boss – whether he/she yells, lacks vision, or is incompetent – leads to frustration, lower productivity and employees (especially top ones) setting up shop elsewhere. Yet the boss problem, while very common, is often incredibly difficult to detect. Very few people who are asked why they are leaving, say “Well, you suck as a manager.” They often use vague references about new opportunities elsewhere and how those opportunities were just too good to pass up. This is to avoid getting into an argument and “burning bridges.” What to do: If you are at the executive level of a company, keep an eye on the management styles of your leaders and how they affect the rank-and-file employee. Given the importance management plays in terms of execution and culture, make sure to call out managers who need improvement (privately) and work with them to help bolster their performance. If you’re a manager and find your employees are leaving more than you think they should, it’s time to do a bit of introspection. Ask yourself these questions:
- Am I helping my employees reach their goals, or do I merely bark orders?
- Do I contribute to making the company/organization an exciting and engaging place to work?
- Does my management style help to improve productivity?