It’s all good and well hiring the right person for the role, but if that person decides to leave within six months, then all the hire will amount to is an expensive mistake. While one employee leaving earlier than expected is no cause for concern, if it’s beginning a trend, then something is wrong. The employee retention rate is a vitally important metric for companies to monitor because it can indicate problems that need addressing.
Sometimes, an employee will leave for reasons that have nothing to do with the company (such as, they’re relocating). At others, an employee will leave because of the company. So let’s take a look at some of the most common reasons why businesses decide to jump ship.
They’re Not Paid Enough
Money isn’t everything to an employee. But neither is it nothing. While things like perks, a pleasant work environment, and other bonuses are welcome, the amount of money flowing into the employee’s bank account counts for a lot. If an employee knows that they can be paid more money by switching companies, then it’ll be a big ask to expect them to say. As well as paying high beginner salaries, it’s important to conduct periodic reviews so that the employee’s pay rises in accordance with their performance.
Poor Company Culture
People want to feel happy when they go to work. If they don’t, then even the most engaging of tasks — and a high salary — may not be enough to keep them around. It’s worthwhile looking at the culture of your company. Is it toxic or positive? Things can quickly go wrong when there’s no company identity. As such, it’s important to set out your principles and ensure that they flow through everything that you do. If you do encounter a problem that impacts workplace morale, then address it as soon as possible.
There’s No Growth
No one wants to feel like they’re in a dead-end job. They want tomorrow to look brighter than it is today. Indeed, if your employees don’t think that way, then they’re probably not the people that your organization needs. There are plenty of ways that you can make your employees understand that their goals can be realized within your company. You can use a service like https://www.learningbank.io/learning-management-system to put together training materials for your team. You can offer a pathway for career development. The method isn’t so important; what counts is that the employee feels that they’re growing in their professional career.
If an employee senses that the company they’re working for is a sinking ship, then they’ll be likely to jump off. It would be the logical thing to do. Mismanagement can bring a whole host of problems for a company, including forcing employees out. While every business goes through stressful moments, if your staff are telling you there are underlying problems that need addressing, then it’ll be vital that you listen — and that you act on them. It might just save your workforce.