Understanding why workers quitDecember 8, 2017 12:48 pm Leave your thoughts
Turnover is a bit of a double-edged sword as a business owner. On the positive side, turnover injects new blood into company culture, providing a fresh perspective and renewed spirit to workplace morale. On the other hand, when key employees are looking for greener pastures, turnover can be a major impediment to growth.
To keep turnover low, it's important for business owners to understand why their workers quit. According to a recently released study, their motivation frequently has to do with new opportunities that present themselves and aren't available where they presently work.
Employees whose job titles stay the same for lengthy periods are more likely to seek alternative employment than aim for a promotion, based on research performed by recruitment firm Glassdoor.
"Employee satisfaction has the greatest impact on retention."
What encourages workers to remain loyal?
As for what factors sway employees to stay put, it's not necessarily all about the mighty dollar. Glassdoor found overall satisfaction had the greatest positive impact on retention, followed by opportunities for career advancement and enjoyable company culture. Higher pay was also a leading factor but not to the same extent as the aforementioned.
For businesses, however, the expense of high turnover alone makes it concerning, noted Andrew Chamberlain, Glassdoor chief economist.
"Employee turnover is costly for employers," Chamberlain warned. "Although you can't control everything when it comes to turnover, Glassdoor data confirms there are many ways you can control whether employees stay or go."
How can businesses encourage their valued workers to remain loyal? Based upon the study's findings, possible methods include monitoring company morale, promoting high-achieving employees to more comfortable positions and providing salaries that are on par with or better than what competitors are offering.
Time itself is money, as the old saying goes, and a number of businesses are giving their workers the gift of time off this holiday season. Surveys performed by Robert Half, another recruitment firm, have found many workers value vacation time as much as they do their earnings. On average, around 50 percent of employers give their workers at least three paid days off during the holiday season, even several days after Dec. 25, according to a recent poll done by Bloomberg Law.
What makes exit interviews worthwhile?
Retention strategies – like those referenced – aren't guaranteed to work. As Chamberlain alluded to, turnover isn't fully controllable, as circumstances and situations vary on a case-by-case basis. Human resources experts recommend conducting exit interviews, which can help get to the bottom of why workers decide to leave.
Lisa Sterling, chief people officer for HR software company Ceridian, told Fast Company that exit interviews help business owners and managers fill in the blanks as to why workers quit. Their answers may reveal similarities. Sterling also recommends talking with satisfied employees to see what makes them pleased with where they are.
"Don't simply ask employees why they stay," Sterling warned. "Probe into what sometimes tempts them to leave, be it money or career growth or whatever else."
At Hudspeth Law Firm, our name might suggest that our services are exclusive to the legal domain. In reality, our business is to keep our clients' companies in business. We offer practical advice that help entrepreneurs and employee managers solve hurdles – like employee retention – so they can become pathways. In short, we can turn problems into solutions. Here's what some of our satisfied clients have to say about their experience with Hudspeth Law Firm.
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