Is your organization experiencing higher rates of employee turnover? This blog post is dedicated to dig deep and discover the reasons behind higher turnover levels and assist HR professionals with suggestions to overcome the challenge!
Based on research findings of “Talent 2020 survey” conducted by Bersin by Deloitte reveals following three reasons as the top reasons for higher employee turnover.
• Lack of career progress
• Dissatisfaction with manager/supervisor
• Lack of compensation increases/ challenges
27% of the respondents in surveys have stated that lack of career progress is the reason for them to seek new employment opportunities. Also another 22% have said it’s due to the dissatisfaction with superiors and another 21% admitted lack of compensation and lack of challenges offered by the job.
Today, employees crave for both monitory and qualitative rewards for their handwork and efforts. Along with verbal recognition they hear through superiors, employees certainly need to be rewarded with compensation, bonus and other incentives based on how they progress and support the mission of the company. It is important to improve the quality of leadership and advice leaders to be better leaders to their employees which will strengthen the relationships between superiors and employees. A leader who understands, supports and guides an employee throughout with constructive feedback will definitely become a strength to the employee to progress, thus encouraging employees to retain.
Particularly the millennial workforce in our organizations expect the job to challenge them regularly. They cannot be satisfied with mere responsibilities and duties. Instead this is a generation that desires to explore new tends, knowledge and apply them in the workplace. They expect the company to actively get them involved in the strategic initiatives. Hence both superiors along with HR needs to ensure they offer more challenging responsibilities to this workforce to keep them engaged, thus reducing the millennial turnover in the organization.
How do we reduce the employee turnover levels by controlling above challenges? The same research identifies top incentives that would encourage an employee to retain with an organization. Let’s dig deep.
Additional bonuses, compensations and financial incentives, promotions and flexible work arrangements have been specified in research as the expected incentives by employees to retain with an organization. Added to this, we believe that HR professionals and team leaders should take the maximum effort to create a challenging and engaging work experience to employees if they expect employees to be encouraged to retain.
Compensations and incentives will certainly become an encouragement for employees. However the most important incentive is to create that challenging experience and a strong leadership for employees. Guidance offered by the leadership will help employees to bridge their skill gaps. They will have a clear idea on what capabilities they should develop if they are to become successors for future leadership roles. Also the challenges offered by the job… we all know that challenges helps us modernize our thinking and progress better. As discussed previously, employees definitely desire to progress in the company, thus they need to avoid wasting time on operational tasks and focus on more strategic challenges. This is why HR professionals and team leaders should ensure to create more challenges for employees in their jobs.
We believe this post unraveled the reasons behind higher employee turnover. With the help of our suggestions and other suitable actions, HR professionals should ensure to help employees perform better, work with the leadership to help employees qualify as successors for future leadership roles and ultimately retain them in the organization! Visit mihcm.com to understand how we help you plan the Human Capital, reducing turnover!