Turnover is the measurement of the number of employees that leave an organization over a specific period of time, typically a year or so.
It takes a lot of time and effort to find the right people for your business and this is particularly apparent when hiring for a small or medium-sized business.
You have the advertising costs, the time taken to sift through CV’s and carry out interviews and then the time spent on induction and training.
Taking this all into consideration, you should be doing everything within your power to reduce employee turnover and this article concentrates on the most common reasons employees decide to leave.
There are 2 common types of turnover, namely:
1. Voluntary turnover
This happens when an employee chose to leave. This may be caused by a better opportunity or disagreement at workplace
2. Involuntary turnover
The employer chooses to permanently withdraw an employee’s services because of poor performance. toxic behaviour.
Various factors cause employee turnover. They include:
A good relationship with employees yields results. A good company culture motivates employees to be productive but a bad company culture leads to poor performance
A toxic manager
Managers are supposed to be functional and reliable. A good manager is skilled, knowledgeable and approachable for any consultation or leadership. When a manager lacks such qualities, staff pack and leave.
A faded scope of growth
Employees want to be associated with an organization that gives them an opportunity to learn and expand their career paths by embracing opportunities granted by the manager. Limited opportunity at an organization prompts an employee to seek greener pastures in other departments of the company.
Poor Benefit considerations
It is important to consider that human needs revolve around finance. Therefore a good manager should offer fair salaries and commissions to his staff. Other benefits, in addition, would be pensions, salary increase etc.
Lack of recognition
Recognition is an important element in employee motivation and retention. A simple “well done” or “thank you” works out perfectly well in acknowledging employee performance for better results.
Employees may be overwhelmed with too much work and may begin contemplating transiting to another place to ease the burden. Managers should distribute roles to ensure company goals are met but not at the expense of the staff’s convenience.