Who’s Responsible for Employee Turnover?

In a survey conducted by Opinion Research Corporation, 80% of respondents said they would consider leaving their current job if presented with other opportunities. It’s an unsettling statistic that emphasizes the struggle to keep top talent many companies are currently facing. In the years following the recent recession, turnover has become a prevalent issue businesses have had to address. And as the economy continues to slowly stabilize, it’s a problem that will only become more widespread.

So, who’s responsible for employee turnover?
While there are a wide variety of reasons an employee will decide to leave a company, it’s likely the root of the problem stems from a few key sources.

The Company Overall
Executives at Microsoft have estimated that of the company’s $450 billion market capitalization value, $350 billion is attributed to the stuff in their people’s heads. Employees are a company’s greatest asset – no matter how large or small. So, in order to keep top talent from seeking greener pastures, it’s vitally important to ensure a strong company culture.

Company culture refers to a range of factors that differentiate one company from another, like mission, values, beliefs, employee development practices, and leadership styles. Businesses that invest in developing a strong culture tend to have fewer problems with turnover, and often attract the best talent from other companies.

Other Employees
Beware of turnover fever. It’s contagious, and no workforce is immune. Turnover fever breaks out when a few employees leaving a company drives others to follow suit. Whether it’s out of loyalty to their coworkers or simply motivated by others taking the first step, turnover can quickly spread among the ranks of your employees, leaving those who stay with the company to deal with the aftermath. From decreased productivity to poor morale to disrupted team synergy, turnover fever can quickly take a toll on your business.

Exit interviews are one effective method to help stop turnover before it spreads through your company. Take time to discuss with exiting employees about the factors that motivated their decision to leave. They’ll be more likely to provide honest feedback on the way out and may be able to shed some light on problem areas that you will be able to address before you lose anyone else.

Leadership
According to a recent Gallup poll, only 22% of workers leave a job because of pay and benefits alone. The number one reason an employee will seek new opportunities is leadership. An employee’s relationship with his or her supervisor is one of the most critical factors in creating a work environment that encourages productivity and dedication to a company and its mission. Without a strong sense of mutual respect, the people you lead will always be looking for a way out.

There are untold numbers of books and development options available to help you build a better relationship with your employees. The trick is finding the style that works best for you. Talk to those you lead to identify what aspects of your relationship need work. Then together, decide on a path to fixing the problem. Be prepared to spend some time on the process and don’t get discouraged if you take a few wrong turns along the way. It won’t happen overnight, but if both parties are committed to building a better working relationship, you’ll eventually get there.

Your Competitors
More than ever, businesses and employees alike are using the various internet tools and platforms to connect to job opportunities. It’s just a natural progression in our increasing incorporation of technology in all aspects of daily life. However, it has also become an effective tool for your competition to poach your best talent.

A recent CareerBuilder survey found that 45% of hiring managers use social-networking sites to research job candidates. With so much information about your employees’ lives available with a single click, it has become much easier for your competition to not only contact, but also build relationships with your most productive workers – and without you ever knowing. It’s becoming increasingly taboo to block access to social sites such as LinkedIn and Facebook in the workplace and you can’t tell your employees not to engage in social media outside of work. So, it is important to maintain communication with your workforce and to encourage them to be open and honest about what your competition is offering them. It will at least give you an opportunity to find some middle ground and maybe keep them from leaving.

If left unchecked, employee turnover can bring a company’s forward momentum to a screeching halt. Preemptive action is the best defense, and leaders who are able to recognize the early signs of turnover stand the best chance of not only stopping it, but also preventing it in the future.