News
You Can Prevent These 5 Types of Employee Turnover
Not all employee turnover is within your control. Chronic illness, family moves, and entrepreneurial endeavors are a few reasons you can’t stop. But some turnover is entirely foreseeable and totally preventable. In a job market where workers are quitting their jobs in record numbers, it’s critical to keep your top performers from jumping ship.
5 Types of Turnover You Can Prevent (And How)
1. Underpaid High Performers
High performers are likely to quit if they feel they are underpaid relative to the job market, or if they are not adequately compensated for their achievements.
How to prevent it
Regularly benchmark your positions to the market. Depending on your jobs and talent market, you may want to re-evaluate this every six months to a year to ensure competitive pay for your field and geographic region. Be sure to set aside a budget for market-based adjustments.
Reward exceptional performance with appropriate compensation and salary increases. It’s not motivating, and can be downright demoralizing, when every employee gets a 3 percent raise regardless of performance. (This is a major pitfall for budgets that account for an exact 3 percent increase per employee—it means one employee must get less than 3 percent for another employee to get more. So be sure to budget adequate money for increases.) Set clear goals and expectations of what it means to meet and exceed performance, so that employees are in control of their achievements and their raises.
2. Inappropriate Pay Disparity
Ill will breeds when two people hold the same (or similar) jobs, but one of them is paid a lot more. This can happen when one employee has been with the company for a long time, or when one employee negotiates a higher initial salary.
How to prevent it
Salary ranges: set them and stick to them when you hire a new employee.
Investigate existing disparities for the same job. Does a legitimate reason explain the variance, such as performance or tenure? Are the employees actually performing different duties? Is one more senior than the other? If no reasonable explanation exists for disparity between employees performing the same job, see what you can do to close the pay gap ASAP.
3. Talent Hoarding
Inter-department transfers are a great way for companies to make the best use of their top talent and to engage high performers in different areas of the business. But managers may hoard talent when they have to compete against other departments for budget, resources, or recognition. Why should they enable their top performers to leave when they may not be able to hire a strong replacement? When upward mobility is discouraged or disallowed, high performers will look for a company that will embrace their natural drive to achieve and promote.
How to prevent it
Watch for warning signs in your management team. Are managers under-rating top employees? Limiting their high-visibility work assignments? Restricting development opportunities?
Reward managers for their ability to cultivate talent that stays within the company.
Get transparent and creative with promotional opportunities. Give all employees access to internal postings, and allow them to apply for their best fits. Minimize restrictions to transfer, and facilitate conversations between the releasing and receiving managers.
4. Poor Role Matches
You may have a fabulous employee waiting to shine—they’re just not able to do it in the role they’re in, due to a mismatch in interests or talents.
How to prevent it
Open communication will catch employees who may be silently suffering from a mismatch (others will be more obvious). Actively solicit feedback about what changes employees need to be happy, and then take steps to improve. How can you help an employee who is experiencing challenges? In the case of catastrophic mismatches, find out what the employee would prefer to do. If Bob is paying invoices in Finance and would rather build PR campaigns (and he has the skills to support this), see about developing a transition plan. It’s better to retain promising talent where you can, but it’s best to be honest if your company cannot support the kind of role the employee is looking for.
5. Burnout
The signs of employee burnout rarely come out of nowhere. Working all hours, skipping vacations, showing up grumpy or negative, missing work, and withdrawing are all possible warnings that an employee is unhappy with their stress levels or workload.
How to prevent it
Foster a culture that encourages work-life balance. This may take time if your culture is at the opposite end of the spectrum. Train leadership to embrace the physical, mental, and emotional well-being of their employees, and to lead by example. Limit work outside of business hours. encourage PTO, and consider flexible or remote work hours. If your company offers an EAP, this may be a useful resource. Also be sure to have an open and honest discussion with struggling employees about how they can feel less stressed or burned out. Do they need to unload some responsibilities? Do they need extra guidance on a project? Find out what they need to run at 100 percent.
In Conclusion
Turnover isn’t going anywhere! But when you can proactively spot it and work to prevent it, you can avoid the exodus of top talent that can threaten your company’s success.
YES! News
The “better” way to conduct layoffs
Layoffs are hard on everyone. Even as business leaders and HR professionals, layoffs are one of the hardest things we have to do. Regrettably, many of us remember this from the all-too-recent pandemic layoffs. Layoffs are a reality we may soon face again as the threat of recession looms. And while we may not have […]
Resolve conflict like a champ
We’re hard-pressed to say conflict resolution is a fun or glamorous part of a Human Resources or leadership role, but it’s one of the most critical parts. How you mediate conflict impacts employee morale and retention, and also shows your leadership abilities and your willingness to tackle the tough stuff. Your conflict resolution skills can […]
Stop! and hire this candidate
It’s easy to criticize potential hires and spot reasons why we shouldn’t hire them. That one is too arrogant, that one lacks technical skills, and that one knows nothing about the company. Process of elimination, right? But too often we fail to recognize the positive reasons why we should hire someone. Positive flags can be […]
Client Testimonials
"Kathi has been an extremely reliable, knowledgeable and indispensable resource for our growing business. Anytime we had a difficult issue or needed to refine, replace or upgrade our HR communication, Kathi provided outstanding support and feedback. She is a wonderful person and an outstanding, solution oriented communicator. I can't recommend her enough to businesses who need assistance with HR strategy and support."
"Kathi is reliable, knowledgeable, and an excellent communicator. She has always been readily available to help us with all of our immediate needs, from handbooks to policies, and notices. We highly recommend her. A great team player."
"SPMD has been partnering with Kathi for almost 4 years. She is a fantastic partner to our design firm. Her experience, knowledge, professionalism and ability to problem solve is the perfect package to fit our business. Over the years she has helped us navigate many employee situations quickly and re-wrote our Employee Handbook. Kathi is always there in a heartbeat when a situation arises and has the answers and advice we need. We highly recommend Kathi!"
“Kathi provided Senior Human Resources leadership to Orqis Medical for over six years. Her effectiveness is immediate, her contributions substantial, and her ability to integrate into the employee base as a consultant outstanding. I highly recommend Kathi to any company looking for senior management help in the HR arena, without the ability to hire a full-time manager. This is a go-to person for any small, medium, or start-up company.”
Free Consultation