You did it! You finally hired and trained the last open position. After silently rejoicing over how everyone is working together and achieving key goals, someone submits their resignation. The cycle starts all over again and it’s so disappointing.
The trickle-down effect is hard to control.
Morale suffers.
Employees left behind feel resentful and frustrated.
Productivity is strained with an increased workload.
Unfortunately, diagnosing high turnover doesn’t come with one straight forward answer. It’s time to figure out why good employees are leaving.
- Awareness is the first step. Talk to employees and listen to their concerns about management, culture, belonging, meaningful work, career growth and more. Feeling heard is so valuable even if every issue can’t be addressed. It shows you value their contributions.
- The power of observation. Be aware of any changes in employee behavior or engagement. People can’t always articulate their frustrations, but behaviors may be your first clue. Don’t ignore a sudden change in demeanor.
After gathering info, categorize common triggers and develop strategies to address them. From our experience, solutions tailored to your employees will get the best results. Keep in mind, some departures are completely out of your control. Those include moving for a spouse or partner’s career, staying home with kids, returning to school or changing careers.
Let’s focus on six areas you can control.
Relationship with boss – Unfortunately, bad bosses are prevalent and one of the top reasons why employees quit. Make sure this doesn’t happen at your company by developing and nurturing leadership skills in managers. A good boss can help retention as they learn what motivates, challenges and energizes their team members. By empowering bosses and giving them latitude when making decisions, they can better address concerns.
On the flip side, monitor how bosses communicate with team members and immediately address any lack of self-awareness and unprofessional conduct. Folks don’t always realize when their soft skills are lacking. Don’t worry, these skills can be developed. Managers with high emotional intelligence can positively impact an entire company.
Recognition –There are many ways that companies can show they value employee contributions: fair compensation, meaningful benefits, ongoing feedback, end of year bonuses, listening and taking action on valid complaints/concerns and keeping promises. Recognition doesn’t have to cost a lot of money. Genuine appreciation for an employee who drove results can have a positive ripple effect.
Employees also need to feel connected to the bigger picture. Explain how their contributions are supporting the overall strategy and mission of the company.
Career advancement – Your top performers may be susceptible to outside opportunities if there isn’t a clear career path. Don’t assume. Ask them about their aspirations and understand not everyone wants to manage people. What types of educational support do you offer? Do you encourage passion projects? After training or education, discuss any new or different responsibilities where they can leverage and grow their new skills.
Challenged – Given how much of our life is spent at work, nobody wants to feel bored. Employees will seek stimulating work elsewhere rather than waste their talent. If managers identify ways to challenge and inspire workers, job satisfaction will increase. What a gift to help channel someone’s talent so they feel proud of their accomplishments. BONUS: even if they move on later, they could return or provide great referrals.
Trust and autonomy – Trust is the foundation of every strong relationship including those in the workplace. Do your office policies signal trust or control? Flexible schedules and allowing employees to work from home are becoming expected. By allowing employees to shape their work environment and hours to maximize their performance, you demonstrate trust.An atmosphere of control and micromanagement becomes part of the corporate culture. Managers are stressed out by the leadership team and then start micromanaging employees.
With a focus on autonomy, the focus shifts to getting the work done. There’s less concern for how it gets done because you trust employees to determine how they work best within guidelines. This trust and autonomy improve job satisfaction, engagement and productivity. Most importantly, they’re less likely to leave.
Financial security – Sales dips, layoffs, hiring freezes, negative press and merging with another company all leave employees feeling uncertain about their job and financial security. Most companies experience one of these, but how you choose to handle them is paramount. Does leadership have a clear vision for moving forward? Is it effectively communicated? Do employees respect leadership’s judgement? Be transparent with your team and give them reasons to stay.
As one of the first companies certified by the IRS*, MidwestHR is a leading Chicago PEO (professional employer organization) in Illinois. By outsourcing HR to our team of experts, you’ll have time to address these important triggers that cause good employees to leave. We can provide guidance while also managing your insurance, retirement, policy development, help with hiring and so much more. Give us a call at 630-836-3000 and learn how we’ve been helping clients for over 20 years.
*The IRS does not endorse specific Certified Professional Employer Organizations. For more information, please visit www.irs.gov or our website at midwesthr.com.
