5 Reasons Why You Should Pay Attention to Your Employee Turnover Rate

importance employee turnover rate improve talent retention

Does your company have a high rate of employee turnover? If so, this problem is costing you more money than you think. Every time you lose an employee it costs 33% of their salary to replace them with a new employee. 

Luckily, there are several things you can do to turn this issue around and keep your people happy so they won't want to leave. 

Keep reading to learn more about what causes a high employee turnover rate and how you can change things. 

1. Workplace Policies Are Too Severe 

The modern-day workplace is constantly evolving. In the tech world, there has been an increase in telecommuting and the ability to be flexible with scheduling. This new shift has started to become popular in other industries as well and many employers are having to adjust to these new expectations by their employees. 

If you are looking for ways to retain your employees, especially those who are fresh out of college, adding the ability to telecommute will lower your risk of losing employees. If your company isn't able to compete with a higher salary, having the option to work remotely will increase the level of interest that people will have in your company. 

If you have a high turnover rate you might want to consider adding a telecommute option to those positions in your company where it is feasible. Even if this capability is only for a few days during the week, it is highly favored among new talent. If they can have this flexibility at another company, they won't want to stay at yours for very long. 

2. Behind the Times 

Another factor that might lead to losing employees regularly is using old and worn out technology. If you do not keep your technology current you aren't supplying your people with the tools they need to remain competitive in your industry. You are also not sending a clear signal about the direction of the company. 

When you provide your employees with updated platforms and newer systems you are giving them the opportunity to stay on the cutting edge of technology. Take it a step further by sending them to offsite training to learn extensively how it works. This will emphasize how much you value them as an employee. 

Staying up to date with the latest technology that is available will also create new opportunities for your company. Your team will be able to see how new platforms can be used to create a better product or update your existing one. This is a great way to invest in not only your people but your company as well. 

3. No Options for Growth 

If you are losing some of your top performers it is likely due to the fact that they have reached their full potential at your company. If there is no room for growth then they may feel that their career isn't going as planned and it is time to move on. 

Even if your employees enjoy their work, enjoy who they work with, and feel they have fair compensation, they will ultimately end up leaving regardless. If they don't feel that there is anything in it for them on a personal level anymore they might open themselves up for a new opportunity and allow a recruiter to offer them a new role somewhere else. 

There should be managerial paths for those who show an aptitude for being a leader and non-managerial career paths for those who don't. If you make these advancement options available within your organization your employees will continue to strive to rise up through the ranks, which means staying long term. 

4. Not Engaging Enough Another area that some companies struggle with is engaging their employees. Their people might be satisfied in general with their work but don't feel connected on an emotional or personal level. This leads to them showing up, doing the bare minimum, and then heading home for the day. 

Once an enticing opportunity comes around, that person will be ready to take it and move on. You can tell when a person has become less engaged if you notice they are calling in sick more often, doing just enough to get by, and aren't joining in on social activities. 

If you notice that an employee is showing signs of being disengaged it is time to step in and boost them back up. Have a conversation with them to see if there is anything directly they wish that can be improved or put them in charge of a special project that focuses on their unique skillset. This might give them the boost they need to become more engaged. 

5. Poor Management 

Oftentimes when someone quits their job it is driven by their need to be free of a particular manager or management style. When understanding why people have a tendency to leave your company one of the places you should investigate is the management philosophy of your organization. 

Your employees need to feel that their needs are being met when they discuss things with their management team. They need to feel that their concerns or suggestions are not only being acknowledged but acted on when necessary. This creates a sense that they are a valued member of the team and that everyone is working together. 

If you have a manager who doesn't have great people skills and doesn't listen to his employees, that person can do long-term damage to the effectiveness of their people and your companies culture of trust. 

Learn More About How to Lower Your Employee Turnover Rate Today! 

These are some of the main reasons why you might have a high employee turnover rate. It is time to take this opportunity to review your company and make some changes to your workplace policies, be more flexible with schedules, and working remotely. 

If your technology and platforms are outdated you should make some updates and send your employees for some offsite training to learn new skillsets. Discover if you need to create some new paths for your people to have areas for growth within the company and engage with them on a personal level while listening to their needs and concerns. 

If you would like more business tips or information be sure to visit our website daily! For more tips on reducing employee turnover rate, visit the HR section of the Bootstrap Business Blog to ramp up retention!

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