Sometimes, employees leave. It’s a simple reality of business that often has no underlying rhyme or reason. However, high turnover – good employees leaving after a year or two on the job – can signal bigger issues. Here’s what you need to know about why employees leave – and what you can do about it.
Salaries Are Too Low
Few people work purely for passion; most work because they need to support their families with solid pay and employee benefits. When compensation isn’t matching obligations, hours worked, or past performance, good employees go running.
To keep employees engaged, perform salary reviews on an annual basis. If there isn’t money in the budget for big raises every year, consider utilizing other perks instead, like PTO, expense accounts, or flex scheduling.
Management Is Performing Poorly
As the adage goes, people leave managers, not companies. When too many employees are heading out the door, management could be the problem.
Instead of blaming other conditions on untimely departures, listen closely in exit interviews and look for signs of toxic management. Don’t disregard employee criticisms; if you hear the same complaints from multiple departing team members, there may be some validity to critiques. Make refresher training and leadership development a priority for all managers to ensure skills are strong.
There’s No Room for Growth
At the management level, promotions are often few and far between, but in the first few years of employment, the opposite is true. Today’s new graduates are often eager to learn, grow, and move up – and as trends demonstrate, millennials aren’t afraid to move on if growth isn’t there.
While promotions for everyone likely isn’t a possibility, there are other ways to offer growth. Consider providing title bumps after a certain number of years, like analyst to senior analyst, or offering secondments in other areas for those seeking new opportunities. The more resources you make available, the easier it will be to accommodate employees.
There’s no way to satisfy everyone, and even with your best efforts, most employees will still move on sooner or later. However, diligence on behalf of your HR department can make a difference, supporting a healthy workplace environment and ensuring all employee needs are met.