Turnover is steadily increasing, and this is a problem for talent recruiters and HR process managers.
High turnover has a number of underlying causes. Some of these causes may be specific to an individual, some may be specific to an organization, and some are specific to an industry.
In a recent SHRM publication, HR professionals offered up some insights, attributing their turnover to specific causes.
Here are some of the most common:
- Compensation
- Lack of development/advancement opportunities
- Workplace flexibility
- Poor leadership
While this list shouldn’t come as a surprise, there is something important missing…
The Thing Many Hiring Managers Neglect to Consider
In reality, very few employees will be 100 percent honest about their reason for departure during their exit interview. This, in large part, is due to a desire to preserve the future reference value of their current employer. The majority of folks re-entering the job search portal don’t want to be seen as lazy or having a poor attitude– or simply don’t like confrontation. Here are some things your departing employee may be thinking, but won’t say:
- “I really disliked this job.”
- “This ‘organization’ is very disorganized”
- “Did my boss even know what my position was supposed to be?”
- “I felt under-trained and under-supported in my position.”
- “The workplace culture was not good.”
- “The harder I tried, the more I was expected to do without any increase in recognition or pay.”
- “I had a lot of willingness to provide unique value but my abilities were disregarded.”
- “None of my ‘higher-ups’ listened to anything I had to say.”
The simple truth is, we have a lot to consider before we can expect turnover rates to reverse their trend. It isn’t typically as simple as “insufficient pay.”
At Peopletrail, one of our goals is to help our valued partners reduce their turnover— a thing that has prompted us to give much thought to turnover’s most elusive underlying causes. Here are a few facts that may lead to a more actionable understanding of our current turnover conundrum.
Important Workplace Turnover Statistics You Should Be Aware Of
Let’s hop right in.
Fact 1
According to moneyzine.com, two-thirds of employees quickly discover their new job is a poor fit after accepting the position.
While this statistic may be a bit deflating, it outlines some areas where improvement can be made. In order to reduce the overall number of unsatisfied new hires, we suggest that every single hiring manager asks themself the following questions before interviews begin:
- Does our organization fully understand the position we are hiring for?
- Have we adequately defined the position or are we expecting the hire to do so?
- Is there a formal training infrastructure in place?
- Are we adequately explaining, during the hiring process, what will be expected of each candidate?
- Are we confident that expectations meet reality?
- Are we gleaning the appropriate insights regarding our candidates’ job worthiness/experience? Read this article for more information.
Fact 2
In a publication by Bulletin, we can uncover some important insights:
46 percent of job seekers cite company culture as a very important and influential factor in their job search.
Now, a valuable, secondary fact is that 91 percent of managers in the U.S. say that an employee’s alignment with company culture is at least as important as skills or experience.
So, what does this tell us?
Focusing on hiring individuals who can embrace (and thrive in) your current culture will likely lead to more continuity among your staff. The data points strongly to this conclusion.
Now, this doesn’t mean your workplace culture shouldn’t continuously adapt and improve, but it does outline a valuable focal point for hiring managers. That being said, hiring managers must ask the following questions for these efforts to be productive:
- What is our company culture?
- Do I understand and embrace our company culture?
- Am I hiring for me or am I hiring for the company?
- Have I considered how a new hire would fit in with the current staff?
- Is the company culture perhaps due for a bit of a change?
Fact 3
According to a publication by Apollo Technical, employees who receive some kind of recognition are 63 percent more likely to stick with their current job for up to 6 months longer than they otherwise would have.
This is a staggering statistic.
If your employees are providing value and, at the very least, consistently meeting expectations…let them know it.
It’s surprising how far a small gesture of personalized recognition can go. A simple note, a little treat box, or a gift card can boost employee morale significantly and requires very little time or resources.
If your organization has many thousands of employees, consider a formalized recognition program that recognizes liberally.
Takeaways
Turnover is complicated. Even though employees may say so, compensation isn’t always the first thing on their minds when they begin sending out their resumes. It is important to treat all the underlying causes of turnover and, if done diligently, your organization should see good results.
For more information on how background screening can help with your efforts to reduce turnover, feel free to reach out to us.
