Keeping your workers engaged is essential to running a successful business, and every manager needs to stay focused on this goal.
Knowing
what makes employees quit — and then heading off those problems — is the goal
of every HR department. While you’ll never be able to avoid individual events
that disrupt the lives of workers and their families, it’s helpful to have an
overview of preventable causes for employee churn. People leave jobs for
several classic reasons, according to Harvard Business Review, all of
which are somewhat predictable. The key is to understand each reason well
enough to defuse it with a proactive intervention. Here are the main reasons
workers cite for leaving their positions, and how you can slow this expensive
leakage and build your employee retention:
They Don’t Get Along with
Their Boss
This
reason is the elephant in the room, and we can’t discuss employee retention
without starting here. Gallup CEO Jim Clifton points out the primacy
of management know-how: “When you name the wrong person manager, nothing fixes
that bad decision. Not compensation, not benefits — nothing.”
When
an exit interview or other feedback shows that you have a problem manager, you
need to rectify the situation as soon as possible. If the person seems open to
developing new skills, it’s often worthwhile to provide them with intensive
management training. However, if real change doesn’t seem possible, you’ll
ultimately save money by replacing them with someone who simply has better
management skills.
Their Lives Take a New
Direction
This
may be unexpected, but research cited in Harvard Business
Review notes that job-hunting rates jump by 12 percent right before a
worker’s birthday. Researchers speculate that a person is often stimulated by
the arrival of their birthday or another milestone to take stock of their life
and see if their career is going in the direction they want. While you have limited
input into this private self-examination, it’s helpful to incorporate a
personal check-in along with celebrating your employees’ birthdays. Are they
happy with their job? What are their current thoughts and ambitions?
Their Careers Aren’t Moving
Forward
In
today’s networked marketplace, your most talented employees are going to keep
an eye on opportunities in their field, and Gallup’s 2017 report on
the State of the American Workforce finds that 51 percent of them
are ready to jump ship at any given moment by actively looking for a new job or
watching for openings. Harvard Business Review notes that Credit
Suisse responded to this tendency by having their internal recruiters cold-call
employees to let them know about new openings arising within the company that
they might be qualified to fill. This program ended up moving 300 employees
into more challenging positions and saved the company $75 to $100 million in
employee turnover costs.
They Don’t Feel Challenged
Human
resources expert Susan Heathfield warns employers that they have to
make sure their workers are actually using their skills and abilities, and
Gallup’s report found that 68 percent of today’s workers feel they’re
over-educated for their current positions. While this is related to building a
career path, it’s not the same. A position may have a title that looks great on
a resume, but if the day-to-day operations don’t actually feel interesting and
engaging, the worker is going to be looking for the exit door. Heathfield
notes, “Work closely with employees who report to you to ensure that each
employee is engaged, excited, and challenged to contribute, create, and
perform. Otherwise, you will lose them to an employer who will.”
The Company Lacks Vision
To
keep great workers, you have to make it possible for them to feel aligned with
a company vision that’s both meaningful and tangible. Gallup CEO Jim
Clifton, in his foreword to the 2017 report, puts it succinctly: “Change from a
culture of “paycheck” to a culture of “purpose.” Your very best employees are
the ones with a powerful sense of internal motivation, and you nurture that
motivation by showing them how their efforts contribute to the overall goals of
the company. CNBC notes, “Some of the most successful companies are
able to attract and retain great employees because they are great at
communicating their vision all the way from the top down to the front-line
workers.”
Their Efforts Aren’t
Recognized
While
it’s essential to give your employees the sense of purpose mentioned above,
that alone is not sufficient. Even your top workers, who care passionately
about doing a good job, still have a psychological need to be recognized for
the effort they expend. Emotional intelligence leader Travis
Bradberry comments that a failure to recognize good work is one of the
biggest mistakes a manager can make. He writes, “It’s easy to underestimate the
power of a pat on the back, especially with top performers who are
intrinsically motivated. Everyone likes kudos, none more so than those who work
hard and give their all.” Establishing a system for employee rewards and
recognition is fundamental to nurturing those human resources that your
company is lucky enough to have.
In
today’s tight labor market, it’s more expensive than ever to lose a good
worker. Josh Bersin of Deloitte points out that employees are
“appreciating assets,” while the cost of losing one is generally about 1.5 to 2
times the person’s annual salary. Furthermore, the increasing team emphasis of
many workplaces makes it harder than ever to integrate a new hire. Keeping your
workers engaged is essential to running a successful business, and every
manager needs to stay focused on this goal.