In our last YES! Your Human Resources Solution blog, we discussed the hidden ways employee turnover can cost your business—not just in budget numbers, but in recruitment, productivity, and morale.  So now that we know why we should minimize employee turnover, what causes that turnover in the first place?

If you answered “money,” you’re probably wrong.  Managers often think employees leave to pursue better pay, but that’s rarely the case.  Research has shown that most employees—as many as 90 percent—leave due to reasons other than money.  Sure, money is important, but just like it can’t buy love for The Beatles, it can’t buy loyalty from employees, and no magic monetary figure can be placed on employee wellness.  So if a company can’t buy its way to a steady staffing complement, it must consider the other reasons employees disengage from and ultimately quit a job.

• A poor fit.  Hiring a new employee is like going on a first date.  Both employee and manager know a little about each other in advance, but they haven’t had a chance to sit down and see if they’re compatible.  Just as sparks don’t fly on all first dates, employees don’t always feel chemistry with their jobs.  More than a third of U.S. workers quit in their first six months at a new job, typically because something about the job or the workplace wasn’t as expected. 
• Poor leadership.  Take a good look at management.  Because they both hire and lead workers, managers should provide a solid foundation for the company’s staffing.  But a Gallup poll of more than one million U.S. workers found that a bad supervisor is the top reason people quit their jobs.  What qualities make a potentially bad supervisor?  Lack of job knowledge, micromanagement, privacy invasion, discrimination, bullying, or even disengagement are all culprits.
• Stress.  In today’s economy, where cutbacks may force one employee to do the job of three, workplace stress is more dangerous than ever.  Working long hours is not conducive to the healthy work-life balance necessary to keep employees productive (and sane) in the office.
• Lack of recognition.  Employees want to feel valued, like their daily commitment is making a difference to their employers.  Employees who do not feel they are properly compensated, praised, or respected are likely to seek those qualities elsewhere.  Management should never assume that they don’t need to speak with employees unless there is a performance problem.  A simple “thank you” is always a powerful phrase.
• Lack of feedback.  As the close relative of “lack of recognition,” feedback lets employees know what kind of job they’re doing—good or bad.  The annual performance review only goes so far to develop employees on a daily basis and to make them aware of any performance positives or negatives.  Who wants to wait until December to hear they could have been doing their job better in January?  Lack of feedback can also have long-term effects on employee advancement.

So now you’ve considered the nonmonetary reasons employees quit.  How do you address them to reduce turnover?  The good news is, it’s never too late to turn things around, and we can help!  The friendly and knowledgeable HR consultants at YES! Your Human Resources Solution are ready with answers to your retention challenges.  We’ll pair with your staff to create innovative, cutting-edge strategies to catch and keep exceptional talent.  From talent acquisition to employee wellness to employee recognition, we’ll help you create a unique approach that works for your business’ plan for the future.  Reduced employee turnover is just one word away.  Harness the power of saying “YES!” by calling today for a free consultation!