Causes Of Employee Turnover

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Causes Of Employee Turnover

Few things are more frustrating for employers than conducting thorough interviews and choosing the right candidate for a role, only to experience unexpected turnover. Hiring managers try to do their due diligence when it comes to selecting the right candidates and ultimately offering the job to the most qualified. Many companies feel that they can’t control whether or not their candidate finds another more appealing job to accept after the fact, but teams can examine and explore the causes of employee turnover and develop a plan of action to prevent this from happening. 

First of all, what are some of the most common causes of employee turnover? 

The most common causes of employee turnover are: 

- Dissatisfaction with the job or work environment
- Lack of advancement opportunities 
- Lack of reasonable pay increases
- Conflicts with supervisors and coworkers
- Poor management or leadership
- Inadequate training or growth opportunities
- Excessive workloads

…and more 

Other factors that can contribute to employee turnover include long hours, inflexible schedules, a lack of recognition or rewards for good performance, and a high degree of stress. In some cases, employees may leave due to personal reasons such as desire for relocation or personal or family health issues.

No matter the reason, companies should strive to reduce employee turnover in order to maintain a stable workforce and ensure consistent performance. It is important for employers to actively listen to their staff and make adjustments where needed to create a positive and productive work environment. This can include providing better pay, career development opportunities, more flexible hours, and improved managerial support. Additionally, employers should strive to recognize employees’ good work and provide rewards for high performance whenever possible. Doing so will build trust and loyalty between the employer and employees, leading to increased job satisfaction and lower rates of turnover.

It can also be helpful for employers to include these questions right in their interviews, asking candidates what kinds of workplace incentives they are looking for, what aspects of job satisfaction are important to them, etc. Asking employees these important questions can help employees develop solutions for employee turnover by preparing in advance. To ensure that your team asks these important questions, it can be important to add these to your interview outline in your interview intelligence platform to make sure that these important details are not missed! Understanding what gives your employees high levels of satisfaction can be key to ensuring that they are a good fit for the position. (Note: This does not mean that you have to change your company’s policies based on a single candidate’s concerns, but it can help you determine if the candidate is a good fit for the role, and can also help you make considerations for future changes to your company policies.)

Negative Effects Of Employee Turnover

There can be many negative effects of employee turnover, which is another reason to avoid it, if possible. Companies notice that the greatest effect that occurs when there are signs of high turnover is that other employees also start becoming dissatisfied. When employees quit, especially if a number of them do, it can leave the rest of the team feeling less confidence in their position. If employees quit due to job dissatisfaction, there is also the concern that they will reach out to existing employees to express their feelings. Many employers feel concern about this as well, but it has been shown that it can lead to even greater job dissatisfaction if employers attempt to stop people from talking with one another. 

There is a delicate balance that employers must maintain when considering employee satisfaction and how to minimize the negative effects of employee turnover. 

Signs of high turnover can vary depending on the size and type of company, but some of the most common signs are:

1. Difficulty Retaining Employees: High turnover can make it difficult for companies to consistently retain employees due to an ongoing cycle of hiring, training, and then losing staff. As a result, a company may have difficulty recruiting and retaining talented individuals, leading to a decrease in productivity and an overall loss of experience.

2. Decreased Morale: When employees are constantly leaving, it can cause decreased morale among the remaining staff. This might lead to more call-offs, reduced dedication to work tasks, or even a company-wide sense of unhappiness.

3. Increased Costs:
High turnover can also lead to increased costs due to interview processes for rehiring, as well as onboarding expenses. This can take a toll on a company’s budget, making it difficult to stay competitive while still covering employee-related costs.

4. Decreased Quality: When employees are constantly leaving, it can be difficult for companies to maintain consistency in quality control. This means that a company’s overall output may suffer, leading to customer dissatisfaction and lost revenue. 

5. Damaged Brand Reputation: High turnover rates can have a negative effect on a company’s brand reputation due to the  lack of consistency and quality control. This can make it difficult for a company to attract new customers, leading to decreased brand recognition in the long term. 

This is by no means an exhaustive list of the potential negative effects of employee turnover, but it does indicate the damage that can be done if this is allowed to continue indefinitely. 

Employee Turnover Causes And Effects

If employers are doing their due diligence with regard to providing for their employees’ welfare and happiness, they will likely already be aware of the top reasons for employee turnover within their own company. However, it is also easy to miss signs of widespread employee dissatisfaction if you don’t know where to look. 

As mentioned earlier on in this article, the top reasons for employee turnover are reasons for concern. These are some of the main issues to look out for within your company: 

Lack of job satisfaction or engagement: Employees who are unhappy with their job, or who feel unappreciated or disconnected from their team can quickly lose motivation and may seek employment somewhere that better meets their needs. 

Inadequate salary and benefits: Compensation is a key factor in employee retention, and if employees are underpaid and not properly supported, they’re more likely to seek out other opportunities. 

Workplace culture mismatch: It’s important for employers to consider the values of potential hires to ensure they’re a good fit for the company. If employees don’t feel like their values align with those of the organization, they may not feel as comfortable or happy working for the company as someone who is a good fit. 

Career advancement opportunities: Employees want to feel like they are on an upward trajectory in their careers, which means that they want to have a place they can advance to within their current company, if possible. If workers don’t feel they are being challenged or given opportunities to grow, they may be more likely to look for that advancement elsewhere. 

Workplace stress: A certain amount of healthy workplace stress can be motivating for workers, as long as there is a point where the stress is aleviated by success and everyone has a chance to enjoy their progress. High workloads, long hours, and unhealthy competition can lead to burnout.. Employers should strive to create an engaging yet balanced work environment that encourages productivity without compromising employee wellbeing. 

High Employee Turnover Effects

If your company is experiencing high levels of employee turnover, or if you are noticing turnover and worried that it could become a problem, it may be a good idea to perform some company maintenance to ensure that the problem is addressed before it becomes serious. High employee turnover affects everyone in the company as it becomes necessary for other employees to absorb abandoned work loads, even temporarily, and that can lead to even more employees feeling workplace dissatisfaction. If you’re wondering why high turnover is bad for a company, this is one of the many reasons. Some others are that high turnover can give your company a bad reputation among potential candidates and cause people to not apply for a job despite being highly qualified. 

Your human resources department can create an effects of employee turnover PDF document that your managers can review to audit their departments and ensure that they eliminate any conditions that may lead to employee turnover. Some of these could include: unreasonable deadlines, never-ending projects, lack of recognition or awards for work well-done, lack of pay raises or bonuses for highly-performing employees, and more. Your guidebook for eliminating employee turnover should include several fixes for your management team, like addressing employee dissatisfaction and providing employees with the kinds of rewards and benefits that are most meaningful to them. 

How To Reduce Employee Turnover

If you are looking for answers about how to reduce employee turnover, your first step will be completing an audit of your company’s practices--including asking your employees to answer, perhaps anonymously, which areas lead to the most frustration and what would make them more satisfied with their job. Once you have gathered this intel, it will be easier to make changes that are truly going to lead to greater employee satisfaction for your employees. 

Implementing new and improved business practices into your company’s day-to-day can lead to greater employee satisfaction. Encourage open communication with your employees and give them opportunities to express concerns and frustrations, whether anonymously or not. Most importantly, make sure that employees feel heard and understood by actually addressing their concerns and making changes that are aligned with their needs. 

Employee turnover can be offset by hiring the right people for the job in the first place. It can be difficult to know whether candidates are truly a good fit for the position, but adding the right kinds of questions to your interview intelligence software and encouraging open discussion of needs and desires in your interviews can set the tone for future employment expectations.