High employee turnover hits your company's ledger where it hurts. Finding and training a replacement can cost one or even 1.5 times the last employee's salary—a steep price to pay, and one that doesn't include the less tangible morale afflictions.
Derek Gagne over at Profit magazine lists five reasons why your employees are quitting your company. And he also shows how they're all your fault, at least in part.
1. You hired the wrong person. "People quit because they are dissatisfied with the company or their current role, or because they are not well suited to the requirements of the job," he writes. "For example, Jane is a strategist and implementer, so she excels when she can determine objectives and tactics to get her team to succeed. But in her current role, she is expected to be a politician campaigning for results, which proves frustrating."
2. You are not setting them up for success. "Nobody likes to be unproductive or set up to fail," Derek affirms. "After a period of time, if your people have been working with antiquated technology and processes or do not have the training to satisfy your clients, they will become frustrated and eventually leave."
3. You are not providing growth opportunities. This one is a "classic," he says. Top performers deliver consistent results and you love it—so you do nothing. But while you're content, they become bored. If you can't give them new challenges and more meaningful rewards, they'll pack up their aspirations and head out the door to find greener pastures.
4. You aren't good at management. Money is one thing; intrapersonal communication is another. Research suggests that a staff members' relationship with their front-line manager is often the biggest driver of employee satisfaction. "Ensure you are creating an open climate of performance evaluation that is not just a one-way street to the employee," Derek offers.
5. You suck at providing feedback. "When employees don't know what's expected of them, they can just blunder away working on tasks that do not meet your expectations. In turn, you get frustrated and determine the employee isn't working out," he writes. But here's the thing: the employee is likely thinking, "This employer has not told me what he wants or who I can go to for help—and I am afraid to ask questions. As a result, I will keep doing what I can until I am told otherwise." According to Derek, "you need to set clear expectations and provide feedback on how your people are doing."
Reducing turnover will boost your bottom line and enhance employee morale. It's a win-win for everybody.