A lot of business owners are confused when they’re faced with high employee turnover rates. There’s a perception that only mean-spirited or incompetent bosses have to deal with high turnover, but that simply isn’t true. It can affect anyone in any industry, and not always for the reasons you might think. It isn’t always hourly rate or odd shift needs.
Hiring managers have a tendency to over-focus on how a candidate looks on paper. We all want employees with great qualifications and experience, but the key to fixing high turnover might be focusing more on cultural fits. Is this applicant going to work well with your team, or are they going to feel uncomfortable and start looking for new prospects? Don’t disregard their skills and background, of course, but spend some time thinking about how happy your new hire will be in your organization. And involve peers in the interview process. Often the best person to judge how someone will fit is the one they will work next to.
Sometimes, especially when things get busy, managers tend to take employees for granted. If you can tell that a member of your team is doing extra work or giving you great results, then let them know that you appreciate it. Don’t feel the need to give every employee a cookie and a gold star, but remember that employees are 32% less likely to leave when they feel respected. Work extremely hard to find reasons to compliment someone publicly. At times, I’ve gone as far as keeping notes when I see something done well, then I’ll bring it up in front of others later.
I know that raising employee pay is a controversial suggestion for small-to-mid-sized businesses that are already working with tight budgets, but it’s one of the biggest factors in employee turnover. If your employees can’t pay their rent or take care of their families, then they’re not going to have any loyalty to your organization. I’m not saying that every entry level employee needs to make six figures, but do some research on what the standard is for your area and industry. If you’re not keeping up with those numbers, then your employees will find a competitor who is.
Still can’t quite put your finger on what your employee turnover problem is? Let me take a look. The sooner you figure out why your staff is leaving, the sooner you can fix it and get back to growing your business.