Common Causes of Employee Turnover- And Its Effects

A large number of employees leaving can be a nightmare for any organization. An organization runs because of its employees and then its machinery. This is called employee turnover. The employee turnover rate is the total number of employees leaving an organization in a year. Now, employee turnover does not occur without any cause.

Dissatisfaction is one of the main reasons for the high staff turnover rate. The work and workplace environment has to satisfy employees in order to perform effectively and efficiently and keep them motivated so that they do not leave the organization. No organization can afford to lose its best employees to its competitors.

Reasons behind employee turnover

There are various reasons behind staff turnover. If an organization can fill the gaps where employees are facing troubles, staff turnover might not even occur.

Lack of opportunities in the organization:

If the employees feel like there are no opportunities for them to grow in the organization, they are likely to get discouraged and will be willing to leave the company for better opportunities where they can develop their skills. Staff turnover might rise if you can not create better opportunities for your employees.

Job rotation, job enrichment, and job enlargement are required in order to keep the employees motivated so that they enjoy their work, feel more valued at work and as a result, will not leave the organization due to satisfaction.

Being overloaded with work:

If you overburden your employees with deadlines and tasks, no matter how much salary you are paying, employees are bound to get frustrated and as a result, will leave the company. If they can not balance their work and personal life together due to excess workload, staff turnover is bound to increase because of how worn out they are at the end of the day.

Being Underpaid:

A lot of companies pay their employees very little then they deserve. This can cause a negative impact on employees because it is proven that employees are most motivated when they are paid well. It boosts their morale and satisfies their needs and wants. Paying less can demotivate employees and as a result, they might leave the organization for better opportunities.

Less acknowledgment:

Acknowledgment from senior management increases motivation among employees. If there is no recognition, employees will not feel appreciated and valued and might not want to work in the organization anymore. Feedback from senior management is very important in order to enhance the skills and efficiency of the staff and keep them engaged throughout so that they do not want to leave.

Toxic work culture and environment:

It is very important to make the workplace comfortable, fun, and toxicity free. A toxic workplace can cause conflicts among employees which will lead to employee turnover. It is important that the employees are respected and empowered in their workplace and maintain a good relationship with everybody, starting from senior management to lower-level employees.

No opportunity for decision making:

Employees are motivated when they are heard and given some authority while making any business decisions. An autocratic leadership style in a company can discourage employees to work there, as they will not have any power and are bound to listen to the senior management only with no chance of providing feedback.

Impacts of employee turnover

High employee turnover has direct consequences on the organization’s profit and revenue. It is a big deal for companies when a large number of employees leave the organization due to the above-mentioned reasons.

Lowers down the morale of the company:

When many employees leave the organization together, other existing employees working for the company might be influenced and want to leave as well. This lowers the morale of the company and it gets very hard to gain the trust back.

Decrease sales and profit:

It gets very difficult to reach the objectives of the business when high staff turnover takes place. An efficient workplace helps in gaining strong revenues for the company. Companies lose their sales and profits and fail to achieve the goals and the missions and visions of the organization if high staff turnover takes place.

Adds new recruitment costs:

When a large number of employees leave, companies have to hire and recruit again which can be very expensive as the new candidates might need training. They might need to pay the new ones higher salaries for which employee turnover costs are very dangerous for the revenue of the company.

Decrease the productivity level:

The company slows down when a large number of employees leave. The productivity rate goes down for which, the company fails to meet its aims and goals in the future. If the turnover is high, companies will likely invest more into recruiting new ones rather than putting more effort on increasing the productivity levels of the employees.

Solution regarding employee turnover

In order to decrease the turnover rate, companies need to step up and work accordingly so that the employees are motivated enough and do not want to leave. Proper and transparent communication with the employees is most important in order to achieve success. Developing a feedback culture is very necessary so that you can understand the physical and psychological needs of the employees.

Job satisfaction needs to be generated. It can be operated by providing employees higher salaries, a good working environment, providing authority, giving them rewards and incentives, giving safety assurance, and several other factors that will keep the staff encouraged and will not want to leave the organization resulting in lower turnover.

By providing staff more training for development and growth, it is possible to decrease the turnover rate. Businesses that do not invest in these sectors might face high turnovers as employees value opportunities for growth. It is a company’s duty to inform employees on how to improve their job scope and performance and this can be done by providing them training in different fields of work, resulting in less employee turnover.

Final Thoughts

It is essential for any business to fulfill its employee’s needs and wants and value their choices and preferences or else employees will not want to work there anymore and high employee turnover will take place.

Although, some turnover is an advantage as it provides an opportunity to move to different and better places and also helps to retain more skilled and knowledgeable employees with pools of fresh new ideas awaiting for the betterment of the company to meet the business goals.