Staff turnover is a certainty. It can be disruptive, decrease morale and prove very costly to a business both in terms of finance and time. In a recent study as much as 150 hours are wasted on mis-hires who either are not “fit for purpose” and replacing them within 6 months of joining. Recently we conducted a survey on why people leave their current job and you may (or not) be surprised at the results. People of course move for many reasons but here are the top five.
Reporting relationship. People feel they can no longer learn from their boss, and that they are being held back as a result. They no longer trust their boss and communication breaks down. They feel unrecognised and under valued. Lack of coaching and feedback leads to demotivated staff. Listen to your staff, hold regular work in progress meetings and appraisals. Respect your staff and remember ‘familiarity breeds contempt’
Work content. Good people need to have their skills used and tested constantly. Employees want to be challenged and pushed. If that challenge is missing, they may go be missing as well. If they are bored-they will leave. Keep top talent motivated to achieve. The key is to spot good performers, exploit their skills, listen to them ideas and if possible increase their responsibilities.
Opportunity for advancement. This often goes hand-in hand with the above. Good people want to develop within the company. They want to ‘grow’ as the company grows. If they can’t see a future with the company- they will leave. Create a clearly defined career path for all staff. Show them a future exists within the company.
Environment. Most people like to work in a clean environment. They want to work in a positive environment with a like minded peer group. Look at the relationships between people. Don’t accept poor behaviour. You can’t afford it in the competitive business environment that exists today.
Money. Surprisingly this is not the main reason why people leaves jobs but when you think about it maybe not so. Numerous studies have shown that money is normally quite a long way down on the list of reasons why good people leave. If the only right thing in a person's job is financial, no amount of money will keep that employee. Imagine you are being paid a lot more than the ‘norm’ in your current role but you don’t trust/like your boss anymore, you are bored and can’t see a future with the company, your peer group are unprofessional, how long would you stay in the company not long. Money isn’t everything!
Given the trends in the current labour marketplace if you never worry about why people leave, what it costs you and what you can do about it, you will need not only an endless supply of new staff but also lots of spare cash.
