An employee is the most valuable asset of any firm. So, when they leave, there will be a gap that needs to be filled up. This exists, and entry creates a big challenge for the organization. Hiring new employees and making them productive requires time, money, and resources.
Also, this process of hiring and training a new resource is tiring and hectic for the management and the new employee. An employee turnover creates a big challenge for the organization in multiple ways.
There are multiple factors of high staff turnover; some of them are as follows:
For company
No visibility of staff work:
It is challenging for the management to monitor the work of all the employees. This increases the chances of misconduct and fraud. Also, it is impossible to know what an employee is up to if they are not visible most of the time.
High turnover:
A high staff turnover rate is one of the biggest challenges for any organization. It not only affects the work but also creates a financial burden. The company has to spend money on training the new employees.
Also, it takes time for the new employees to get acquainted with the work and become productive. This adversely affects the work in the organization.
Staff overpays:
To reduce the staff turnover rate, organizations often overpay their employees. This is not a sustainable solution and often leads to financial problems for the organization.
No commitment:
Another problem that leads to high staff turnover is the lack of commitment from the employees. They are not dedicated to their work and often switch jobs searching for better opportunities. This creates a big challenge for the organization in terms of both work and finances. To combat this issue, you can periodic training sessions to engage and motivate your employees.
Retirement:
As the baby boomer generation approaches retirement, there will be a massive number of retirements in the coming years. This will create a big challenge for the organization because their trained employees with years of experience will be leaving. This problem can be tackled just by hiring internees or trainees.
For staff
Like a company, staff also have some reasons to leave the company that might be following:
UnderPay:
One of the main reasons for staff turnover is underpaying the employees. This often leads to frustration and dissatisfaction among the employees. They start looking for other opportunities that can offer them better pay. Once the employee seeks an opportunity, it becomes challenging to retain them.
No clear direction of work:
Another reason for high staff turnover is the lack of clarity regarding the work. Employees are often not aware of their roles and responsibilities. This leads to confusion and frustration. As a result, they start looking for other opportunities that can offer them more clarity. Every employee is different from others and has a different skill set. If you will not use your employee’s skill set, he will feel de-motivated and will look for a job where his skills will be put to use.
No career prospective:
The shortage of job growth possibilities is a major cause of employee turnover. Employees often feel stuck in their current position with no scope for growth. This leads to dissatisfaction, and they start looking for other opportunities. It is essential to provide career growth prospects to your employees to keep them motivated.
Diversity deficiencies:
Another reason for high staff turnover is the lack of diversity in the organization. Employees often feel that they are not given equal opportunity, and their voices are not heard. This leads to frustration, and they start looking for other organizations that can provide them with more diversity.
Inflexible work environment:
The inflexible work environment is another reason for high staff turnover. Employees often feel that they are not allowed to work from home or have flexible working hours. This leads to dissatisfaction, and they start looking for other organisations that can offer them more flexibility.
Conclusion
These are some of the major reasons for high staff turnover. If you want to reduce the turnover rate in your organisation, you need to identify the root cause of the problem. Once you have identified the problem, you can take steps to solve it. You can also provide training to your employees to engage and motivate them. However, if you want to reduce the turnover rate, you need to provide career growth prospects and a more flexible work environment.