Reasons for Employee Turnover

Pay And Benefits

First and foremost, companies must have competitive pay and benefits in order to attract and retain talented employees. Accordingly, we recommend that companies conduct benchmark wage and benefit surveys at least every other year. In addition, companies should consider sharing the competitive benchmark information with their employees to help them understand that they are being compensated fairly. Also, we recommend that particular attention be paid to explaining the company’s employee benefits, as these programs are very costly but are often taken for granted. Sending out an annual benefit summary to employees, showing the cost of health insurance, 401K contributions, life insurance, disability plans, etc., can be extremely helpful in this regard.

No Visible Path for Future Growth

While competitive pay and benefits are important, many employees make their decision to leave the company due to perceived lack of growth or professional advancement. We suggest that employers meet with their employees at least once a year to discuss their professional aspirations and to develop a plan to help them achieve their goals. This conversation can be had during the course of an employee’s annual performance review process. Another tactic that companies might employ is to develop a formal succession planning process where employees are actually targeted for advancement to key positions.

Poor Management

According to a recent Gallup survey, 75% of the people who voluntarily quit jobs did so because of their boss “people quit bosses not companies”. No matter how lucrative the pay and benefits might be, if employees feel that they are mistreated or underappreciated they are more likely to seek employment elsewhere. Simply said, employers must work to ensure that they have cultivated a positive work environment. To achieve positive labor relations, it is essential that managers and supervisors receive labor relations training. Again, Supervisors have a critical role, as their day-to-day interactions with employees determines the employee relations and labor relations environment.

Unfortunately, many companies fail to provide their line supervisors and managers with any labor relations and communications training. Fortunately, Hutchison Group’s labor relations consultants have years of experience providing effective Labor Relations Training for Supervisors and Managers. Our programs are affordable and can be accomplished in less than half a day’s time. For more information about our labor relations training please contact one of our experienced HR consultants.

In addition, our labor relations training programs can help with union avoidance, or for unionized companies help improve union relations and union contract negotiations. Again, for more information please contact one of our union relations consultants or union avoidance consultants.

Excessive Work Hours and Constant Pressure

During the recent Covid-19 outbreak many employers were forced to work excessive overtime hours due to historic levels of resignation. While this short-term gap measure was necessary, prolonged overtime can cause employees to “burn-out” and resentment toward the company, as excessive work requirements can negatively impact their personal and family lives. The Hutchison Group, Inc. can help your company prevent these negative effects by providing HR and labor relations consulting services. We will work with you to create policies and procedures that help to protect your employees’ work-life balance.

Boredom

Last but not least, many people leave their jobs due to boredom or lack of interest. When possible, it is always a good idea to provide opportunities for people to learn new skills and provide new challenges. This can be done by engaging employees in group projects, such as asking them to develop new or improved processes for their respective jobs. When employees feel involved and engaged, they are far less likely to leave. As mentioned earlier in this article, supervisors and managers have a key role to play in this regard. Again, teaching managers and supervisors to understand employee engagement in the dynamics that impact an employee’s perception of their work experience are critical to avoid turnover and improve productivity.