To begin with and have a better understanding of what is employee retention and attrition, we need to understand the definition of them. Therefore, a simple yet powerful definition of what is employee retention refers to the organizational objectives of retaining its talented workforce and lowering the attrition rate by adopting and implementing employee practices.
Being able to retain employees within the organization is very important as it saves time, investment and resources. Employee attrition refers to the loss of employees such as elimination of a position, resignation or other similar reasons.
Many hiring managers wonder why good employees suddenly quit, when their performance has always been on par. What happened? What made them take that decision?
Often, companies witness their best employees are gone and snatched up by another company without any mention of complaints in the exit interview or resignation letter.
When good employees leave, productivity sinks, morale suffers and colleagues struggle with increased workloads. On the other hand, recruitment and training costs and onboarding new hires can make for a difficult and expensive transition. At the end of the day, the cost of a goof employee quitting is more expensive than employee retention.
Instead of letting good employees quit, managers must practice a type of preventive action within their work culture. Content and thriving employees keep a business growing, and good employees leave when their needs aren’t being met or respected.
Biz in Heels has listed below some of the main reasons why good employees leave their companies even when their performance has always been on par:
- Feeling Stuck
There comes a time for every employee when they feel stuck in their current role, unable to develop their career further or progress in the corporate ladder. Unfortunately sometimes the best employees get held back for being too good at what they do. Good employees want to grow and give back and without a career ladder in the company structure, they can’t do that. Dreams and goals begin to feel impossible. What’s left within the company for the individual to aspire to their dreams?
- Inability to Develop Skills
There comes the time when employees can no longer able to develop their skills, there is no constructive feedback or training during his work, resulting in a negative result to the employee and to the company. A good manager will always nurture and push their employee with equal and appropriate measure. The employer will always find ways for the employee to develop and apply their skills, whether during his role within the company or that’s a new project. When the employee feels safe, his/hers skills are appreciated and respected, there is a great chance the employee with remain longer with the company.
- Unseen, Unrecognized and Underestimated
Employees want to hear that their work is appreciated, just a simple ‘Great Job’ after a week of hard work. A lot of companies, don’t pay attention to these small details that can uplift their employees, make them feel important, give them a reason to continue to contribute and be part of the company. Without this, good employees go without reward or respect, and they feel unseen, unrecognized and underestimated.
Regular and open communication with the employees to address their needs and positive reinforce them should be amongst the priorities. Is it a raise, a bonus, more social time to get to know each other or take the lead on the next project? Either you go big, or your employees will go home.
Every year most companies have their evaluations in place. Evaluations of the employees and their performance during the year. Performance reviews are a great way to open up a flow of open communication where the exchange is mutual. That’s the time you need to listen to your employees, his needs and wants. Allow employees to open up and speak without fear. Managers should give balanced and empathetic performance reviews, actively listening to their employees. These evaluations should be reviewed again half way through the year and check whether your actions and goals of the company and employee have met their objectives and the purpose of the evaluations. Employees often don’t see themselves going anywhere after an evaluation, they feel demotivated and even more frustrated because he / she was never heard. This reaction will only real the employee to leave the company. Don’t just do an evaluation for the sake of making one. Make an employee evaluation that will make a significant difference to your day to day working activities and company goals.
- Hierarchy is too high
We often found our selves trying to reach the high level to reach someone to be seen and be heard. We often find many obstacles in front of us during this process, either other managers try to stop you, of your work is passed on by someone else, or even doors are closed. Managers and specially managers at the higher level in a company shouldn’t forget the importance of having an open-door policy. How can you expect your employees to grow and get the experience within a company when there is no one to listen, check or communicate with them? Employees prefer to exit a company rather than staying a company which he / she is not valued enough or his /her opinion doesn’t matter.
- Lack of Respect and Trust
Employees often face lack of respect and trust. Why this is happening? Managers seem to focus on turning a profit while they fail to motivate their employees in a human way, respecting their contributions, time and value as a person. Managers must remember the golden rule and offer up the same respect, decency and trust they expect from their employees. Don’t be surprised if your employees start leaving the company if this doesn’t happen.
We are living in a world where employees should be treated with respect, equal opportunities that will boost their productivity. Failure of addressing this, will lead to an increase of employees turnover.
- No clear progress path
Good employees, don’t just want a job, especially the driven ones they want a career. If they don’t find that in your company, they will start asking around for the next opportunity. You should offer your employees a path forward from early on, informing them about possible career opportunities during their initial onboarding process and helping those that are worth it to move along that path. Having and keeping people for years in the same position with no clear career advancement path, makes them feel trapped and unappreciated. Having no clear goals for your employees career will only lead the good ones to leave and find this opportunities elsewhere.
- Celebrate Team Success
For an organization to be successful it requires a team effort, its not just from the upper level of the company, but the whole company. Your company wouldn’t be successful if it wasn’t for that minor employees, for the middle employees, for the managers or directors. Therefore, the saying ‘a team that works together, grows together’ and team work is all about celebrating each member’s hard work and effort. Having to celebrate every milestone achieved through collaboration is taken into account. Seize the moment, share the happiness by celebrating together and don’t just take the credit that other people work hard for it.
Talent is the biggest asset within an organization, therefore invest on the employees who’s talent can drive your organization to the next level. Treat your talented and driven employees with respect, listen and understand their career path. Don’t treat your employees as they are a number. Invest in them so that they can invest in you.
Striking the right balance between attrition and retention, the balance between organization and employees. Having and building a highly productive and engaged team starts with devising innovative employee retention strategies.
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