In the age of millennials, where it is not only about fetching that dream job, we are also witnessing a steep rise in the number of recruits quitting their job in less than a year. The annual turnover in these jobs is noted between 65% to 85%. The cause for employee turnover can be many starting with poor leadership practices, office culture or working hours.
The old rules of HR do not fit in the present condition, and while it is essential for HR to study the growing trends and the factors for job satisfaction in millennials, it is important for them to be a catalyst of change in the company. Examining leadership style, taking feedbacks seriously, conducting surveys, etc. are few ways to help unearth any underlying reasons for high employee turnover at your organization.
What is Employee Turnover?
Employee turnover indicates the number of employees, who leave their jobs that are replaced by new employees. The whole process of hiring a candidate, training and gestating takes time, resource and money. Thus, it makes it essential to find the reasons for employee turnover and seek proper solutions. Today, millennials are more dedicated towards their work and yearn to learn and grow. If they do not find the environment conducive for their growth, they are not likely to stick around for a longer time and hop onto another.
Key reasons behind employee turnover:
“Good employees don’t leave companies – they leave their managers” having said that, here are some prominent reasons for high employee turnover:
Rudeness, frequent blaming, spiteful talks, partiality, and slandering are some of the reasons that exaggerate employee turnover. Mistreating employees or offending someone is not a characteristic of a positive work environment. Not providing transparency or filtering of information by both upstream and downstream management are considered unethical and not conducive for growth.
Unrealistic demands, micro-managing, stringent work pressures, irregular timings, frequent transfers, etc. compel employees to choose between personal life and work. In today’s fast-paced and hectic life, having a sound work-life balance will work as a breather to employees and practicing proper work schedules and keeping balance will help keep employees loyal and dedicated to their work.
Everybody wants appreciation for the efforts they put in. In fact, it is an innate human tendency. Everyone wants to be recognized for their work. Recognizing and appreciating employees one of the most effective ways to motivate them. There goes an unspoken rule “Appreciate in public and disparage in private” doing the opposite is sure not going to help anyone.
Guidance and feedback are lacking
Guidance and feedback play an important role in employee growth and develop a successful team. Good managers know how to improve the performance of their employees by consistently providing them with honest feedback and guidance as and when required. At the same time, in the name of direction, some managers resort to micromanaging, which often eats up the creativity of employees and suffocates them triggering office blues. A good manager knows not only the right way to guide but also knows when to do so.
Hikes and promotions are frozen
Career move is essential for talented and ambitious employees. This enhances their skills, knowledge, and visibility over the business. Nowadays, hikes and promotions are often used as baits to retain the employees. Most often, hikes and promotions are frozen due to the economic crisis or to make the employees stick with the company. When the employee wants to leave the company or is not working at his/her optimum best due to workplace dissatisfaction, the manager should help that employee get over his/her block and either motivate him/her to work more or leave without qualms.
How does employee turnover affect a company?
As compared to large-scale businesses, SME and startups are more likely to witness high employee turnover. The reason being SMEs often have a single employee handling multiple tasks. If an employee leaves his/her job, it affects the productivity of a company badly. As a result, other employees have to pay for the loss by working for extended hours. This leaves the remaining employees exhausted and disheartened thus, eventually tend to walk out.
Ways to improve employee turnover:
Turnover rates hover around 30% in the service sector and 13% in industries. Retaining millennials is a holy grail, as they are known for frequent job-hopping and instability. Today, as the majority of workforce comprises of millennials, the retention process can be more arduous. Although, flexible timings, proper training, and salary hikes are basics for employee retention. Yet, the organization needs to figure out more ways of valuing their employees that can simplify the process of retention. This can include offering flexibility, rewarding employees, encouraging generosity and gratitude, respecting your employees and providing them growth and development opportunities on a regular basis. Let your employees know how much you value them.
Though it is inevitable to prevent an employee, who has already made up his/her mind to quit the company, following these aforementioned ways will undoubtedly assist in retaining the best talents to a great extent whilst boosting productivity and workplace happiness.
A self-made and reared-up writer, Anwar Shaikh is a wannabe Cloud evangelist and has a great penchant for SMAC, CRM, ERP and human resources solutions. He writes for Pocket HCM, a leading provider of cloud-based payroll and HR management software to businesses all across India. You can find more about them on Facebook and Twitter.