A company that can maintain and continually grow at a constant rate with low to no turnover becomes a highly profitable company. Turnover is one of the highest costs of companies that hire and fire many employees over the course of a year. Reducing that turnover decreases the costs for a company and frees up manager’s most valuable resource, time.
Of course, focusing on maintaining a company culture is important. Learn how to keep the good employees you have and meet their needs to reduce your own turnover. According to research, here are a few reasons why your employees are quitting:
- No professional growth
One of the six basic human needs is growth. If a person isn’t growing, they are dying. Meeting this need can be challenging if you are not relating directly to your employees on a level they need. Work with your managers or directly with your employees to determine what they need to feel like they are growing. Some employees are simple and require continued trainings and extra resources while others need tangible growth such as new positions, bonuses and increased pay.
Find ways to also allow your employees to contribute professionally in the company beyond just their work. Create a way for them to share ideas and brainstorm about ways they can improve the company, save costs, do their job better, and feel good about what they are doing in your company. This creates a sense of ownership in your company and will also reduce turnover.
While some people are happy maintaining the status quo or with repetitive tasks, others are not. When a person who is creative, resourceful, and excited gets in a position where routine and thoughtless tasks are the majority of their work they reach a threshold. It is at this threshold that they will start looking for new work or a new position within your company. Open the lines of communication when you see a person becoming static in their work and what they are accomplishing. If you have a relatively positive trust with them, they will open up and be honest with you, but only if they believe their openness will not get them fired.
- Lack of significance
Just like growing is a basic human need, so is significance. Each person feels significant based on their own personal need. A person can feel significant when they are a leader or when they see a project become successful. Others might gain significance through recognition or by receiving a gift. Each person is different and each person, on some level, requires significance to feel like they matter in their own life and in the job they do. Find a way to show each of your employees that they are significant and they will begin feeling better about themselves, too.
- Lack of resources
If an employee is doing their best to continually grow and contribute to your company, it is your responsibility to make sure they have the best resources available to them to continue growing. During your reviews or in regular meetings, ask what your employees need to do a better job and present some of the ideas you have available to them. Maybe they do not know you have additional training programs available or that they are allowed to ask for extra technology. An additional computer screen or phone headset could allow an employee to increase their productivity to the next level. Plus, they feel significant enough to be heard and receive new tools.
- Low pay
While many employees will state low pay is their reason for leaving, many times low pay is the straw that broke the camel’s back. An employee that is paid competitively in the industry will not leave a company solely because of pay when their needs are being met. If an employee is feeling significant, growing, and is supported with resources to do so, the vast majority will not leave that company.