As all employers know, finding good employees is challenging; it takes a lot of time, energy and money. In addition to the hard costs associated with filling a position, there are numerous soft costs, including screening resumes, conducting interviews, onboarding, and training. Considering the time and money you invest to find the right people, the key question is: How do you keep them?
To answer that question, it’s fundamental to understand what keeps employees engaged. On the flip side, it’s also important to know why employees leave. Below are some of the most common reasons employees give for leaving a job, and steps you can take to prevent them.
“I didn’t like the company culture.”
Every company’s culture is unique, and what works for one company won’t necessarily work for another. When establishing your corporate culture, don’t just follow trends. Make sure to focus on what’s authentic to your company. Similarly, if your culture needs to be re-evaluated, revisit your core values. Are they the same as they were originally? Do you have guiding values that are clear? If they aren’t, re-establish what’s important to the company and make it known.
Once your company’s culture is clearly established, if you advertise it accurately, you’re more likely to attract employees that fit in with that environment. And, as you introduce more workers that naturally fit within your culture, it will be more consistent and easier to maintain. Building this strong company culture will help employees feel more connected to the company, which promotes retention.
“The pay and benefits weren’t enough.”
Employees often believe they need to switch companies in order to receive a significant salary increase. No matter how happy an employee is, if they feel underpaid and undervalued, they’re more likely to find a new employer who will pay what they think they’re worth. When determining employee compensation, it’s important to assess your industry and location to confirm you’re consistent with market rates. And while compensation is paramount in finding and retaining top talent, a competitive benefits package is almost as critical. Evaluate the needs of your employees to make sure you’re offering a benefits package that’s appealing.
If your company isn’t in the position to lead the industry in salary and insurance coverage, you can offer other less traditional benefits such as transportation subsidies or matching charitable donations. Workplace perks such as work-life balance, vacations, flex time, and remote work options are other ways of rewarding your employees.
“The management was bad.”
There’s a well-known saying: “People leave managers, not companies.” Managers play a critical role in their direct reports’ engagement and success. Studies have shown that managers can be the most important determinant of retention. In fact, one in two employees have left a job to get away from a manager at some point in their career.
It’s common for successful employees to be promoted to management level positions because they’re good at their jobs. The problem is, first-time managers don’t necessarily know how to lead, and they’re not always groomed with effective training. It’s essential that employers invest in new managers by enrolling them in training programs and assigning them mentors so that they can learn necessary leadership skills such as delegation, conflict resolution, and time management. This can save employers money in turnover costs, and without it, employers are setting up managers and their direct reports for failure.
“There was a lack of career growth opportunities.”
Many of your best employees want to build skills over time so they’re more marketable. Encourage this by investing in their professional development. If you prioritize this, they’ll feel valued and see you as a partner. There’s a range of professional development opportunities you can offer, and although many of them do have cost associated, some are free!
Paid professional development opportunities such as educational stipends and tuition reimbursement are great ways to engage and motivate employees. If paid opportunities aren’t an option you can comfortably offer, internal mentoring programs can be just as beneficial. Additionally, there are a number of useful free development opportunities, such as industry webinars, or industry-related book recommendations. Whatever you decide to offer to your employees, make sure you prioritize it so they have time to fit it in with their work schedule.
Ultimately, employees need to feel connected to their job, their manager, and their company. If any of those elements are missing, employees may be more inclined to leave. And while the human-to-human connection is crucial, providing technology to facilitate easier communication helps employees to feel connected. Payroll Data offers a variety of tools to enhance communication, so you can ensure that your employees stay engaged. If you want to learn more about our Orbit Solutions products, contact your Client Service Representative or send us a note today!