One interesting phenomenon of adding an HRMS to your business software is seeing the actual companywide figures on employee turnover. Turnover is inevitable as people retire, move on to new work, or seek new opportunities. But, high turnover can be a sign of something amiss within your company. It’s up to you to play detective to find the potential causes of high employee turnover and fix them before it drains the best and brightest from your company.
Five Main Reasons for High Employee Turnover
There are many reasons why people leave jobs, but these five reasons are some of the more frequently cited ones. They are also situations that you can change in your workplace. Monitoring exit interview data in your HRMS system can help you identify some of the common reasons at your business why employees are leaving.
- Expectations weren’t met: There are expectations on both sides of the desk when an employee interviews with your company. Employees have expectations of employers just as employers have expectations of their new employees. When an employee’s expectations for job duties, responsibilities, benefits or other factors aren’t met, they may seek work elsewhere.
- Work-life balance: It’s true that as an employer, you expect your employees to work hard. But that does not mean they should be wedded to the company. People need time off to recharge their batteries, attend to personal and family obligations, and have a life outside of work. If you expect your employees to give 60, 70, or more hours of time to their jobs, something’s got to give.
- No job feedback: It’s hard to work in a vacuum. If you’re not getting any feedback on your job performance, it is demotivating. Similarly, receiving only negative feedback is also very demotivating for employees; it’s like constantly being scolded without any sign you are doing better. No one wants to work in an environment like that.
- Poor management skills: Managers can contribute to employee satisfaction. Likewise, they can also create a culture of high turnover. Poor communications skills, lax management, playing favorites, unclear delegation or instructions … the list goes on and on of bad management skills that can contribute to high turnover rates.
- Frozen salaries: Companies who promise bonuses and wage increases must keep their promises to employees. Although a temporary freeze on bonuses or increases may be necessary, it can contribute to higher turnover rates, especially if such freezes are a regular
Reversing High Turnover Rates
The good new about this rather depressing list is that everyone on the list is within a company’s power to fix. Here’s how you can reverse the trend of high turnover rates.
- Set clear expectations: Establish clear and honest expectations from the first interview onward. Make sure that potential and current employees know what is expected of them and what they can expect from you.
- Respect work-life boundaries: People need lives outside of work. No matter how committed you are to your company, make sure that you respect your employee’s personal time off. Unless there’s a true emergency, don’t call them at home or on the weekends. Allow adequate vacation and personal time. Consider offering work from home schedules, flexible time, and other perks so that people can attend to their personal lives without feeling obliged to be on site every second of the day.
- Offer feedback: Feedback should be given regularly through scheduled reviews, but it should also be part of daily communications. Managers may need coaching on how to offer actionable feedback. Include praise for a job well done and plenty of thanks to people, both in private and in group settings, when they go above and beyond their work.
- Management training: Management skills may come naturally to some people but it can be a learned skill as well as an innate one. Managers may simply need training to understand how to interact with subordinates and manage without coercion and negativity. Find professional development or continuing education courses in management skills for your team
- Offer regular performance reviews and raises: Structure your budget so that even during lean times you can still provide a cost of living raise to your employees They may love their jobs, but if they can’t make ends meet they will be forced to look elsewhere for work.
A new HRMS system can be eye-opening. Within its reports, nothing is hidden, including high turnover rates. If your company struggles with high turnover, then look within to find the solution. It may be easier than you think to turn around turnover.
Accounting Systems Incorporated (ASI)
Accounting Systems Incorporated (ASI) provides ERP, accounting, and other software and systems to help your company grow. We focus on helping small to mid-sized companies improve operational efficiencies through the power of software and technology. Software such as Sage 100 and Acumatica ERP can provide the business intelligence you need to grow your company. For more information, visit our website, or call us at 803-252-6154.