More often than not, it’s considered a loss every time a skilled yet unhappy employee decides to leave the company for any reason. It takes time and resources to find a replacement, which creates a temporary void that needs to be filled and may affect the whole operations of a business.
As a responsible business owner, manager, HR professional, or recruitment agency, you must know the reasons behind high turnover rates so you can mitigate the situation. You wouldn’t want to be that company with that kind of reputation. Potential applicants (and your competitors) may even think there’s something wrong with how you run things.
With millennials making up the majority of the current workforce, it’s deemed prudent to know what makes them tick, so you can make the necessary adjustments. By doing this, you can help them reach their full potential and keep them from leaving their jobs. Here are 10 important statistics to help you understand why employees leave:
- 80% of employees leave due to bad hiring decisions.
- It takes up to two years for a new hire to match the productivity of a tenured employee.
- According to a survey, 31% of 1,000 employees quit in their first six months for different but avoidable reasons.
- Companies that support flexible hours and remote working conditions have a 25% lower employee turnover rate.
- 65% of employees believe they can find a position offering a higher pay, which gives them more confidence to leave their jobs without fear.
- Over 50% of global companies have a difficult time addressing employee retention.
- For more than two years, 10-20% of an employee’s salary goes to training.
- 50% of employees voluntarily leave in the first two years of employment.
- Management transparency generates 30% better retention rates.
- 46% of HR managers believe that employee burnout is the reason for half the company’s workforce turnover per year.
How Would a High Turnover Rate Affect Your Business?
A high employee turnover rate will have adverse effects in many areas of your business. When one leaves, the remaining team members are likely going to pick up the slack. This could lead to overtime requests and some delays in their deliverables. Ultimately, this would incur more costs for the company.
If employees are aware that their co-workers are leaving, this may also affect the overall morale of the workplace, prompting others to question their loyalty to the company and think of finding better opportunities elsewhere.
The stress caused by a high turnover rate may lead to lowered productivity in the remaining teams, which can cause more complications in the work environment. Being overworked to compensate for the absence of the former employees would likely affect their health, leading to absenteeism that may cause detrimental effects in task delegation.
All these factors could create a domino effect and cause more employees to leave, so you’ll have to implement quick and efficient recruitment processes that would help avoid creating unpleasant drama that adds stress to the workplace. Always keep in mind that your workforce is your company’s most valuable asset.
If only all your valued employees would never leave the company, it’s going to be easier to steer your company to success. However, this only happens in a perfect world, so there will be those who will leave to search for better opportunities that will be good for their career growth.
It’s going to be your job to create an ideal work environment that promotes a positive workplace where your employees can reach their full potential. Make sure to keep an open mind and be humble enough to realize and work on your weaknesses. Only then would it be possible to retain people and have them work for you for as long as it takes. To help you with that, check this infographic by Manila Recruitment:
This is a guest post by Melanie Alvarez.
Mel Alvarez provides fast, convenient advice to high-growth, innovative teams with specialized recruitment requirements in the Philippines. She also connects top-level candidates to Manila Recruitment’s placement services, through social media and digital channels. As a leading member of the client services team at Manila Recruitment, Mel is passionate about helping clients solve their executive, expert and technical recruitment needs in Manila’s dynamic job market.