Even in today’s fragile employment market, many organisations see a high rate of employee resignations and turnover. Why are some organisations losing so many great employees? Because many employees have been overburdened with additional work, increased stress, and less resources, they are extremely frustrated! When you combine it with a general lack of appreciation for a job well done, or even frozen or lowered salary and perks, you have some really dissatisfied teammates.
Today we’ll look at one of the primary reasons good people leave an organisation. Employees often quit from their managers rather than their jobs. Simply said, a strong leader has a favourable impact on others around him/her. Even if the firm is failing, a competent manager can filter out the issues while still leading his or her workforce to be productive. This creates a steady, successful working atmosphere. At Search partners international (SPi), we have compiled some effective actions on how leadership development can successfully combat employee turnover.
Understanding Employee Turnover
Employee turnover signifies the rate at which employees leave a company within a specific period, encompassing both voluntary and involuntary separations. The formula to calculate monthly turnover is straightforward: number of separations divided by the average number of employees. With the average US annual turnover rate at a significant 20%, it’s imperative for organisations to strive for minimal turnover. Yet, many delay retention programs due to costs, overlooking the extensive financial and productivity losses associated with replacing employees, which averages to about 8 months of the departed employee’s salary.
Root Causes of Employee Turnover
The pandemic illuminated long standing issues, with career advancement emerging as the leading cause of employee turnover. Other significant factors include health and family concerns, work-life balance, and retirement shifts, particularly with the departure of Baby Boomers from the workforce. This highlights the critical role of employee development programs in addressing turnover concerns.
Learning And Development Strategies For Retention
For Employees
- Implement career pathing programs: Career pathing fosters employee growth through predefined goals, enhancing retention and supporting hiring processes.
- Provide leadership training programs: Beyond promoting social justice, DEI training ensures a diverse range of opinions are respected, benefiting organisational culture.
- Encourage personal learning initiatives: Addressing mental health and stress reduction through classes and time management training benefits both employees and companies.
- Create a culture of learning: Continuous employee development encourages perpetual learning, addressing skill gaps and promoting self-improvement.
For Managers
- Enhance retention through manager training: Addressing management deficiencies by focusing on communication, empathy, and motivation is crucial.
- Foster creativity as mentors: Allowing employees creative freedom, as seen in companies like Apple and Google, can lead to innovative breakthroughs.
- Informal role creation for skill reinforcement: Encouraging the application of new skills through temporary or part-time roles aids in skill retention.
SPi: A Solution to Turnover
The success of learning and development programs lies in their relevance to individual employees. SPi’s talent development solution matches employees with top L&D experts, addressing specific skill gaps and effectively combating turnover.
Conclusion
The battle against high employee turnover is multifaceted, requiring strategic leadership development and tailored learning and development (L&D) initiatives. By fostering a culture of continuous improvement and leveraging innovative solutions like SPi, organisations can significantly enhance their retention strategies, ensuring a more stable and engaged workforce. Forbes has more insight on How Leadership Development Can Reverse Turnover. For effective information contact SPI!