Why do companies have high turnover

In fact, working over 55 hours in a week is extremely bad for you in many ways. Does your company have enough resources, unrealistic deadlines, too much volume, lack of training to do the job efficiently?

Pinpoint the root cause and make changes, fast. You can also praise employees who prioritize their work-life balance and discourage staying late. On the other hand, a lack of challenging or engaging work is also a major cause of employee turnover. In other words, boredom. Employees grow bored with their work for a number of different reasons. If they feel that their capabilities are underused or their job lacks meaning, boredom can set in. But so can a mismatch between their interests and the type of work they do or company they work for.

In some cases , bored employees are more stressed than overworked employees. Solution: How you deal with bored employees depends on their reason for their growing bored in the first place. Are they finding their jobs too simple and monotonous?

Give them a new challenge. Provide them with new training and education opportunities, send them to a conference, or enroll them in manager training. If your organization is experiencing a brain drain, the most likely culprit is an ineffective, incompetent, or just plain evil manager.

Solution: This one falls squarely on the shoulders of management. Most importantly, listen to what people say in their exit interviews, but also read between the lines.

Preventing turnover is mostly about listening to employees. Understanding why they leave is one important part, but so is understanding why they stay. To be sure, certain professional positions, such as management consultant, technology user experience designer, and software engineer, are also prone to high turnover because these skills are in great demand. But our focus here is on hourly service industry turnover.

We have identified those factors and addressed them with what we call the turnover remedy: four elements that, when combined in a hiring and support infrastructure, will make new hires less likely to quit.

Those elements are smarter recruiting, smarter onboarding, continued training, and the deployment of highly skilled frontline managers who are adept at engaging with as many employees as possible. Source: strategy-business. All rights reserved.

In service industries, which are dominated by hourly workers, turnover adds expenses in lost productivity, the need to pay overtime to workers when open positions remain unfilled, and distracted management.

Further, in service industries, well-trained and experienced employees can be as much as 50 percent more productive than new hires. A new employee spends one to two weeks in training and onboarding during which he or she is unavailable for frontline work. Finally, as an employee nears quitting, a week or two before the planned departure, that worker often begins to show up late or not at all. Such unreliability leaves gaps in schedules that managers must scramble to fill — either by doing the work themselves and neglecting their own tasks, calling someone else in at the risk of inconveniencing that worker or having to pay overtime, or hiring higher-cost temporary workers; these short-term solutions continue until the position is filled.

Clearly, turnover costs need to be abated. Turnover rates are highest in the first three months. Those who find those things to be a poor fit will leave. From months three to 12, turnover declines, and employees who leave do so for multiple reasons, including their relationship with their manager and coworkers. Employees who quit at this phase report frustration at not fully understanding what is expected of them or how to succeed in the eyes of managers, and a lack of camaraderie and support from colleagues.

Wages and work schedules are also an issue in this time period. Regardless of tenure, however, it is our experience that the umbrella category of workplace culture is the underlying cause of turnover: a poor employee fit with company values and strategy, unsupportive coworkers, and a manager who lacks skills in communication and people management. Secondary drivers include personal reasons, low wages, and a challenging work schedule.

Clearly, focusing on the cultural issues that trigger turnover is an imperative for organizations. In the first year on the job, employees often quit for a higher-paying position or because their work schedule becomes difficult to manage. Here are some creative ways to ease those problems and retain more employees. Solution: Although a 20 percent increase is nearly impossible for most companies to match without drastically raising their labor costs, employers can propose other incentives.

Consider offering college tuition support and upskilling opportunities on company time as attractive alternatives. She thinks she will have to quit and get one or two part-time jobs. Solution: Companies can make shift work more flexible.

Try allowing employees one to two hours off to ferry children to and from school and then have them finish their shift later in the day or start earlier the next day. Problem: An employee with an ill family member is starting to be called on to care for the family member with little notice. He is having difficulty finding others with whom to swap shifts and thinks quitting is the best answer. Solution: Apps or other technologies can be used to help hourly employees more easily change schedules.

Having a high turnover rate is incredibly costly. We know that engagement plays a large role in determining turnover. If enterprises want to decrease the amount of turnover, they will need to work on keeping their workforce engaged. Actively disengaged employees cost the U. The effect of disengaged employees extends beyond your bottom line. Unhappy workers are more likely to share negative experiences and affect your brand. Employees are your greatest brand ambassadors, but if they are sharing experiences that are neutral or not positive it could affect your reputation.

In turn, that could affect your recruiting efforts and brand perception. High employee turnover is costly and can negatively affect your business. High turnover is caused by a lack of communication, support, and company culture. Ensuring that your staff has an amazing experience with your organization can help decrease turnover and increase engagement.

Effective internal communication can help increase engagement and ensure that your distributed workforce feel connected to your company.

Here are a couple of ways to establish amazing internal communication :. Regardless of company size or industry, success comes from people doing their best work. Transform your digital workplace and mobilize your workforce. Get a demo. High employee turnover? The real causes and impact.

Share on linkedin. Share on twitter. Share on facebook. Share on email. Posted August 20, in Internal Communications. What is high employee turnover? Employee turnover rate statistics How can you tell if your turnover is high? What causes high employee turnover? Employees may also choose to leave if they are presented with a better compensation or perks package. Job perks, including the ability to work from home or unlimited paid time off, may entice workers to switch organizations.

Turnover and frontline staff Why is there a high turnover for frontline staff in particular? These may include: Sending employees messages on the communications channel or device they prefer Communicating with employees at times that are convenient for them to receive messages Encouraging and inviting two-way communication between executives and ground-level employees Authentic, transparent communication from executives and CEOs Reaching and engaging with deskless and remote workers How to reduce turnover Creating a positive employee experience can help decrease the amount of turnover by making people want to stay.

Evaluate your current communications channels. So your email and intranet alone will not reach your workers over time in the same way as a system that integrates all your channels. Improve employee engagement by studying your employees.

Learn who they are and what communications channels they prefer. Create a multi-channel approach in reaching your employees.