Employee turnover costs companies nearly $15,000 per employee. This number goes up the higher the employee's salary as well. Suffice it to say, employee turnover is a huge cost for companies.
Given the expense of losing employees, it's important for companies to figure out what is driving their employees away and put efforts in place to reduce turnover. Keep reading to learn more about three main causes of employee turnover.
1. Toxic Culture
A company culture that is toxic, promoting unhealthy competition and sabotaging, questionable morals, and high stress levels will drive away talented people as quickly as they can find another job. When your company culture is toxic, you drive way new talent as your company gets a bad reputation and your best employees often run for the hills as well.
Your employees will only put up with so much before they resort to self-preservation. If you find that your company culture is driving employees away, it's time for a shift in how you operate.
2. Bad Management
You may have heard the saying that "employees don't leave jobs, they leave managers." Bad management can quickly drive away your best employees. Bad bosses are one of the most common causes of employee turnover.
Things like undermining an employee's success at work, lack of opportunity for professional development or direction, and bogging down an employee with tasks that have little or no value all push employees away from companies.
3. Little to No Work-Life Balance
Work-life balance seems to be a buzzword for employers at every level. Being able to manage your work life and home life is growing increasingly harder as companies try to have one employee do the job of two or three employees. The use of email and other technology also creates an atmosphere where employees may feel that they can never disconnect.
Emails and messages sent outside of work hours make disconnecting impossible. When employees have to choose between their job and their family or personal life, it pushes them away from the company.
4. Lack of Decision-Making Ability
Trying to manage everything your employees do devalues them and their decision-making ability. Managers need to give their employees autonomy over decisions and resist the urge to micromanage their duties. Employees who have ownership over their work and projects are empowered and have a stronger buy-in to their work.
Giving them ownership over projects, such as how to reduce churn at a magazine, for example, can help them feel valued and trusted. Ultimately, you want to hire good employees and let them do their jobs.
5. Job Did Not Meet Expectations
If the actual job significantly varies from the job description posted and what was described in the interview, an employee will quickly try to find a new job. Not only is the job not what they expected, but it also fosters a sense of distrust from management.
Reducing Employee Turnover
High employee turnover not only costs your company a great deal of money, but it also impacts the morale of other employees. If they constantly see people coming and going, it will reduce their loyalty to the company as well. Save your company money and save morale by working to reduce turnover.
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