Staff turnover is expensive, disruptive, and time-consuming for all employers. The most common reasons given for high staff turnover are poor work/life balance, low job satisfaction, lack of career growth opportunities, and poor management and leadership skills.
Research conducted by Gallup suggests that the cost to replace an employee is between one-half to two times the employee’s annual salary. This means that an employee who is only paid $30,000 can cost between $15,000 and $30,000 to replace. The cost of replacement also depends on the skill set, experience level, and tenure of the person being replaced.
Reasons Why Staff Leave
Identifying employee experience is key to understanding why a company may or may not have a high staff turnover, and you can click here to learn more.
1) Feeling Undervalued
This can either be financial or in terms of recognition. Employees expect to receive a salary and therefore, there is a need for financial stability. Moreover, people may leave if they feel that the company does not recognize all of their hard work and achievements.
2) Excess Workload
It can happen due to an increase in work, or it can be a result of the fact that some organizations do not effectively communicate tasks with employees before the start of each new project. Having too much work may also result in employees having to spend an excessive amount of their time on administrative tasks and this reduces their productivity and ability to take initiative.
3) Lack of Career Growth Opportunities
Some employees may leave due to a lack of career growth opportunities. This is because there are only so many promotions available. For instance, if an employee joins after the promotion round has been completed, they may feel that their performance is not evaluated accurately compared to other employees that had previously been promoted. Therefore, they feel unvalued and may leave the company to seek employment elsewhere.
4) They Dislike Their Manager
This can occur in several ways. Firstly, they may not like the manager’s interpersonal style or they may lack respect for their manager and therefore, they do not feel like they would be able to make a good impression. This can lead to a lack of professionalism in their interactions with others and this could result in negative peer relationships, which leads to disengagement, which is another factor that results in high staff turnover.
Secondly, the employees may dislike the decisions that are being made by their manager, as this can prevent them from making decisions independently, and this could lead to high levels of dissatisfaction within themselves.
If there are major issues with the reasons mentioned above, then it would be very useful for the company if it could identify what is going wrong and how to fix them.
There are some ways that companies can do this; however, it all depends on whether they are dealing with a small or large workforce. For example, if a company was dealing with a small workforce (less than 500 employees), they should do an anonymous survey to find out exactly what the problem is, and then they could take action to fix them one by one.