Our annual employee turnover rate is 38%. Prior to this fact-finding report no attempt was made to formally track employee turnover so the past turnover history is not documented. Downsizing or restructuring is now the primary reason employees leave their jobs. Another important reason people leave their jobs is to find new challenges and opportunities. Downsizing accounts for more than 50% of applicants encountered by recruiters, new challenges and opportunities account for another 30%. . As we are trying to expand, these two elements do not contribute to our high turnover rate. Opportunities and challenges resulting from our expansion are readily available to our staff, and we are actively recruiting not downsizing. When we eliminate these two causes, it comes down to they are over-worked, under-appreciated, kept in the dark, shuffled around and get a better offer from somewhere else.
People stay with their jobs for a variety of reasons. For some it is because they are afraid that if they quit no one else will hire them. As the economy improves, this will cost us much of our “best and brightest” talent. For others it is a matter of trust and loyalty, they believe in the company. This can be in terms of corporate success; it can also refer to their faith in management’s dedication to looking out for its personnel as well as its bottom line. We need to be sure we have both. Some people appreciate the social appearance of prosperity they get by working for us. Having good benefits and flexibility are two other strong reasons people continue in an employment situation.
We can use a number of approaches to turn our figures around; starting by keeping the staff we have, learning their satisfaction level, and how we can raise it. Then we can improve things by giving new hires a clear picture of their job and benefits. Without making promises, let them know we are vital, growing, and advancement and flexibility may be open in the future. Management needs to work towards greater job satisfaction for everyone including themselves.
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