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Employee Turnover: Symptom or Disease?

Chuck Schwartau

Summary

In most businesses, some employee turnover is inevitable. It is generally accepted as part of being in business. What is not as well understood are the causes of turnover and whether employee turnover is the problem itself, or only the result (symptom) of something else that is causing the turnover.
Research has measured ten primary causes of employee dissatisfaction that eventually lead to employee turnover. The same research show employers have a different perception of why employees leave. It is often believed that employees leave because they are able to earn more from another employer. Research has shown, however, that compensation is not the main reason employees leave a job. There are interpersonal factors that often rank higher as reasons for leaving one job to take another.
There are many positive actions employers can take to minimize employee turnover. Among them are:
• Hire right in the first place!
• Training
• Orientation
• Personal contact
• Positive feedback
• Opportunity for personal and professional growth
• Support some outside activities
• Family and cultural considerations
• Recognition
• Flexibility in work schedules
• Employee engagement
These actions can often be low cost items to the business, but do require employer/managers to invest some of themselves in the process of spending time with the workforce.
A managerial investment of time and understanding can save the cost of replacing employees, which may easily have a cost to the business of 1 ½ to 2 times the compensation of a lost employee.

Details

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