If your organization is struggling to retain top talent, it is time to take a closer look at every aspect of your operations to identify the cause. Employee turnover can compromise your company’s finances and productivity; therefore, keeping your workforce satisfied should be a top priority. Here is a look at nine common causes of low employee retention rates:
- 1 1. You’re Hiring The Wrong Employees
- 2 2. You Haven’t Set Clear Expectations For Your Employees
- 3 3. You Don’t Show Employees Your Appreciation
- 4 4. The Working Environment Is Toxic
- 5 5. There Are No Opportunities for Advancement
- 6 6. Employees Do Not Feel Heard
- 7 7. Your Salary Offering Is Not Competitive
- 8 8. Your Employees Are Burned Out
- 9 9. A Lack of Compelling Benefits
- 10 Contact the Employee Retention Strategists at Business Benefits Group (BBG)
1. You’re Hiring The Wrong Employees
In some cases, businesses experience a low employee retention rate because they are not hiring the right employees from the onset. This could be due to a personality mismatch, such as hiring a shy person for a customer-facing role, or it could be that, although they are qualified, the employee is simply not a good fit for the company culture.
Improper vetting could also be part of the problem. Sometimes employees may embellish their education or experience on their resume, and if your pre-hiring checks fail to identify these types of discrepancies, the employees you hire could quickly find themselves in over their heads and ultimately leaving the role because they are not comfortable in it.
2. You Haven’t Set Clear Expectations For Your Employees
Some employees have said that they do not know exactly what is expected of them, which makes it difficult to meet objectives. As a result, they may feel like they are incapable and seek employment elsewhere.
In order to help employees understand what they should be doing and feel more competent at their jobs, clarify which projects they should focus on and make your expectations clear when it comes to completion timelines. Setting goals that are measurable and achievable, as well as milestones for longer-term goals, can help keep everyone on the same page and ensure employees can track their progress.
3. You Don’t Show Employees Your Appreciation
Many employees leave their role because they do not feel appreciated by their employer, with one study finding that a remarkable 66% of employees would quit their job if they felt like they were not appreciated.
This is unfortunate because it often turns out that the employer did appreciate the employee but simply failed to demonstrate it. A few kudos can go a surprisingly long way, but when employees have accomplishments such as finishing critical tasks ahead of time, praising them publicly in a team meeting or offering them a bonus for working overtime can also convey appreciation.
4. The Working Environment Is Toxic
Nobody enjoys working in a toxic environment, and many people cite this as a reason for walking away from a job. If you suspect that a toxic workplace could be behind your employee retention problem, it’s time to take a closer look at the atmosphere in the office and see how it can be improved.
If there are tensions between team members or multiple reports of harassment, you will need to make some positive changes to your working environment or you are likely to continue losing employees.
5. There Are No Opportunities for Advancement
Standout employees might walk away because they want to move up the ladder and your company is not offering enough opportunities for advancement. Consider giving strong performers more responsibilities or the chance to learn new skills.
Send them to conferences and show a willingness to invest in them, and make a point of promoting from within the organization rather than hiring from outside wherever possible so everyone sees there is a chance to move up and grow with the company. You may also consider arranging mentorship opportunities for outstanding employees.
6. Employees Do Not Feel Heard
Many employees express frustration that their opinions and concerns are not heard by management. When employees believe their situation is not going to change, they will seek other work opportunities. Therefore, it can be useful to create a culture where employees are comfortable offering suggestions and sharing their thoughts. This boosts engagement and gives them an important sense of control.
Consider using surveys to gather feedback, and encourage management to take the time to listen to employees who come to them with concerns.
7. Your Salary Offering Is Not Competitive
Some employees may feel compelled to leave their organization because the salary they are earning is simply not competitive. These days, there is a significant shortage of workers, and many businesses have been making very attractive salary offers in order to fill vacancies.
Auditing your salaries on a regular basis is the best way to confirm that they are keeping up with the latest market conditions. Although adjusting your pay may not seem financially feasible, it often is more affordable than the expenses of recruiting and training new employees.
8. Your Employees Are Burned Out
Many people are leaving their jobs because they have decided they are too stressful. Although most jobs will always have some element of stress involved, many employees are struggling with burnout, particularly those in organizations that are understaffed.
Focusing on wellness and encouraging employees to find a positive work-life balance is a great way to keep them from feeling overwhelmed and walking away from the job. Consider offering wellness benefits such as fitness coaches and nutrition services.
Mental health benefits can help employees who are struggling with stress, depression and other psychological issues. In addition, consider training management on how to identify signs of employee burnout so they can help those who are struggling to better manage their workload.
9. A Lack of Compelling Benefits
Although salary is an important factor, other aspects of compensation could also be impacting your employee retention rate. Benefits is one area where many businesses can make some improvements. Offering an attractive benefits package can help your employees to access resources that they might not be able to afford otherwise.
Although health insurance and paid vacation remain popular, many businesses have been getting creative with their benefits offerings recently, and the results have been overwhelmingly positive. In many cases, these benefits are very affordable for businesses to implement. For example, offering employees the ability to work from home can go a long way toward increasing satisfaction. This can be offered on a full-time or part-time basis.
Another good approach is allowing employees to schedule their working hours in a way that facilitates their commute to work or makes it easier to meet their family commitments. Employees who choose their hours are often more productive as well.
Contact the Employee Retention Strategists at Business Benefits Group (BBG)
Employee retention is a complex matter, but a thorough exploration of what is driving employees to leave your company can inform an effective strategy for keeping attrition to a minimum. Find out more by contacting the experienced benefits consultants at Business Benefits Group (BBG) today.