High Turnovers Due to Lack of Growth
There are tried-and-true facts in business that stand the test of time. Here is one: high employee turnovers waste important resources and hurt the bottom line. Some researchers pegged the average replacement cost of a mid-level employee to be in the 20,000 dollars range. The monetary loss is more acute for more senior and longer-term employees. Hiring and on-boarding are expensive tasks, complicated by significant resource gaps caused by high staff renewal rates.
Turnover is not an all bad thing. It is a reality in any normal business cycle. It can also reinvigorate businesses by sparking innovation and generating new ideas on old companies’ conundrums. A turnover of 15% per year is healthy (Forbes magazine). However, more should be cause for concern. Reasons for this situation should be methodically investigated.
For starters, why are my employees leaving? Too often leaders and managers assume disgruntled employees leaving the company is a situation out of their control. That couldn’t be further from the truth. It is beneficial to do a lot of introspection and internal analysis every time an employee quits. Even reasons for firing should be analyzed. Leaders tend to jump to hasty conclusions: wrong personality, wrong skills, wrong attitude. Wrong. Wrong. Wrong.
But what does it say about an organization when so many employees jump ship? What can improve? Do employees have opportunities to further their skills and feel valued?
The fact of the matter is that any organization with decent resources should invest in a training program for their employees. An effective professional development program should reduce to a certain degree turnovers. Cultivating a learning environment will cost a fraction of high turnovers' costs and will lead to better business results.
Employees want to develop and grow their skills. If they’re not able to do this in your job, they’ll find one where they can. This is one of the top reasons why they quit. Tried-and-true fact in business today.