While a certain amount of turnover will always exist in an organization, high turnover can take its toll. Not only can it damage morale and harm company culture, it can lead to significant financial costs.
If your organization has high turnover, you have to spend time and energy replacing top talent that has been lost. High turnover rates can also contribute to lost productivity, employee burnout, and low employee engagement among employees who continue to work for your organization.
- Bad management – if leadership is confident, consistent, and focused, your employees are more likely to understand how their goals align with larger organizational initiatives. On the flip side, if management changes directions frequently, is authoritarian in their leadership style, or does not help employees see the bigger picture, you may find that rocky management is contributing to turnover. In these cases, consider management coaching sessions, mentor programs, town halls, or other communications initiatives that can help your management team adjust their approach to employee relations.
- Lack of recognition – if data from exit interviews demonstrates that employees are leaving because they don’t feel appreciated for the work they do, you may need to examine your employee recognition programs. A simple starting place? Giving positive, honest feedback when it is earned. Not only does it make the employee feel valued, but the immediacy serves to reinforce and reward behavior. In the short-term, a simple “good job” can go a long way. Long-term, you may want to consider implementing pay-for-performance plans and bonus programs that will drive engagement and ultimately retention.
- Compensation issues – if employees feel they’re compensated fairly, they’re more likely to work for your organization long-term. Employees are looking to work for organizations that offer fair and competitive pay packages, and communicating how your organization ensures pay is fair can go a long way towards retention initiatives.