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Date Created: 12/21/15
High Staff Turnover? Top 4 Ways to Lose Your Best Employees Many companies face the challenge of high staff turnover, which can devastate morale, reduce productivity, and drive up costs. According to a recent study, 48 percent of new hires fall through within the first eight months of being hired. It has also been estimated that losing a middle manager can cost a company up to 100 percent of the manager’s salary, while the loss of a senior-‐level executive can almost double that figure. Employee retention is imperative on both entry-‐level and senior executive levels alike. By creating a stable, superior workforce, your small business can focus on growth and perform better than your competitors—even in a down economy. But the first step in doing so is to understand what causes employees to turn your business into a revolving door. 1. Your Best Employees Are Overwhelmed You rely on your top employees because they’re the best at what they do. You can count on them to come through when you need it most. If your small business has gone through any recent layoffs, your best remaining employees are likely overloaded with excess tasks. Although it may initially make sense to ask your best people to take on the additional work of two or three employees, this temporary fix often ends up becoming status quo. The result is resentment, burnout, and high staff turnover. When your existing employees feel overworked or stuck performing the same boring tasks, they start looking for other sources of employment. 2. Lack of Advancement or Development Opportunities If you expect to keep your best employees, you need to offer them some form of career advancement or opportunities to develop their skills. This can include providing training programs or management courses to help prepare lower level employees for openings in more senior positions down the road. When employees feel like their career is stagnant and they have no chance for growth, they start looking for companies that can offer it. 3. Owners or Management Are Absent Small businesses run into high staff turnover issues when management doesn’t appear to be involved or available on a day-‐to-‐day basis. If you’re just occasionally checking-‐in but are never around to answer questions or interact with employees, they’re going to wonder about your commitment to the company. Although you may be pounding the pavement for new business ten hours a day, you still need to make the effort to engage employees at the office as much as possible. It comes with the territory of running a successful business. Make sure employees know you have an open door policy as well, and encourage them to stop by with any questions or concerns about the business. 4. Company Goals Aren’t Shared You might know where you want your small business to be in six months or even five years from now, but do you share it with your employees? If employees don’t know what they’re working toward, they won’t be motivated and may doubt your ability to lead the company. But don’t go overboard with sharing your plans for the business, either—employees don’t need to know all of the details. Endlessly discussing strategies can actually push employees away and cause them to become overwhelmed, especially when they don’t know why they’re being led in a particular direction. Get Help With High Staff Turnover It’s never too late to implement strategies to prevent the employees you value most from leaving. You just need to avoid these costly mistakes so you can turn around your retention rates. If your business is struggling with high staff turnover today or you want to stop it from happening in the future, get your copy of Practical Tools to Manage Costly Employee Turnover. This e-‐book gives you strategies you can start using right away to reduce turnover and lower your human resource costs.
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