Employee turnover rates are something that many companies have seen rise and rise in recent times, hitting an all-time high of 19.3% in the U.S. in 2018. What’s more, a whopping 51% of employees are considering a new job, according to Gallup.
No longer are the days when employees stay with the same company for 20, 30, 40 years. Company longevity may still hold some value, but a new culture is taking place. Now, employees see endless possibilities and accessibility to different companies and roles. If something is lacking in their current position, employees will seek elsewhere to satisfy their wants rather than look inward to their current employer.
As an effect of rising turnover rate, companies are losing money. A study by the Center for American Progress found that turnovers can cost businesses from 16% to 213% of the lost worker’s salary.
Besides seeing losses from the employees who leave, those who are unsatisfied yet still with their current job are hindering companies with their lack of engagement. Another study by Gallup found that companies lose $450-to-$550 billion a year in lost productivity.
Employees are leaving, and companies are losing. High turnovers rates instigate a setting of constant on-boarding and a lack of company cohesiveness, motivation, and dedication. In this new workplace atmosphere, leaders have an opportunity to make a difference and provide employees with reasons to stay.
When employees quit, managers and other hiring professionals within the company scramble to handle the situation. Focused on finding a replacement and getting the work done in time, they fail to do an analysis of why the employee left in the first place. Perhaps the reason could be something the company could prevent or work on in the future to avoid the loss of other valuable workers.
The phrase “employees are investments” shouldn’t be taken lightly. Time and energy need to be put into every single person, and their role in the company should be seen as long-term from the start. That being said, one of the main reasons workers leave their companies is because they don’t see opportunities for growth, according to Forbes. Having the ability to learn and improve is one of the top-ranked qualities millennial employees are looking for in their employers.
Providing opportunity for employees to learn and move up is necessary to their longevity. If no such thing exists, they will look outside company walls for a position that better aligns with their aspirations. As a leader, your job is to know your team members well, understanding their individual goals and constantly working to help them grow and achieve.
Growing and learning means something different to everybody. Find out what it means to each of your team members. From there, do everything in your ability to match workers to opportunities within the organization that would be a good fit for them. Employees want employers who are invested in them and want to help them be their best version.
David Novak, CEO of NBC News, has taken a close look at the dropping numbers of employee engagement in our workforce today and cites the major cause to be a lack of recognition. According to Novak’s research, not only are employees experiencing a recognition deficit, but recognition itself has a proven record of motivating workers and causing them to leave their jobs if they’re not receiving it.
Crediting team members when they do their work well or go the extra mile doesn’t seem like a difficult task. However, Novak states that there are barriers to leaders that keep them from recognizing others, such as fearing they need to recognize everything and everyone and don’t have the time to do so.
Nonetheless, workers need to feel valued. They need to feel that their efforts do not go unnoticed. Leaders who know their team well know who brings what skills to the table. You know each person’s strengths and weaknesses. When you’re impressed with someone, when they exceed your expectations, when they excel at something you knew they were struggling with, recognize them.
Giving people credit doesn’t have to be stressful or make you feel like you need to do it all the time. But giving credit where it’s due on a semi-regular basis is absolutely crucial to employee engagement and will only instill a positive and uplifting culture.
As a manager, boss, or anyone in a leadership position, you may not be able to control all parts of the company. The reason some employees leave may be something completely out of your control.
But more often than not, people leave companies because of bad managers and lack of engagement. As a strong leader, you can drive engagement by being a resource and support for all those around you each day. Invest in each person, their career, and their lives.
Lend a hand, help set goals, put in a good word. You may just be the reason someone wants to stick around. For help developing your leadership skills, contact Knowted to hear more about our products and services that can help you!