12 Causes and Reasons for High Employees Turnover

12 Causes and Reasons for High Employees Turnover

Discover the 12 significant factors driving high employee turnover and how to address each issue effectively. From lack of growth opportunities to poor workplace culture, these challenges can erode loyalty and productivity. Learn actionable solutions, such as fostering innovation, promoting work-life balance, and enhancing managerial skills. Discover more insights on SMEBrother, your go-to resource for business advancement, financial guidance, and practical tips for small to medium-sized enterprises.

Having employees who are loyal and don't want to have the desire to change jobs is something that must be maintained. If a company cannot provide comfort to its employees, it can increase employee turnover. The high turnover can make employees leave the company. There are many reasons why employee turnover can occur, and you as managers or higher-ups must understand how to identify and overcome some of the problems. This topic will give you knowledge about how to find employee turnover data, and how to improve employee retention strategies.

Is high labour turnover good?

No, because the high turnover rate on labor or employees can bring a lot of negative effects on a company. The negative effects will continue to be sustainable, directly or indirectly. High turnover has many factors as triggers, such as lack of support, communication, or company culture. If it is not immediately detected and handled properly, employees will not be enthusiastic and feel uncomfortable in the company.

Employee turnover can affect business with immediate or delayed consequences. Sometimes managers or higher-ups are not aware of this, and only focus on sales even though the bad effects of employee turnover can be prolonged.

Why high turnover is bad for a company?

If there is a lack of employee engagement, either company gets lower quality of work, the company will get continuous employee turnover, and will have to waste a lot of time teaching inexperienced employees. Prolongedly, the company will experience low productivity and significantly reduce revenue.

Top Ways To Improve Employee Productivity

Imagine if a company has to keep looking for new employees because many employees don't feel comfortable and resign in the near future. Companies must continue to run, but it takes a lot of time for adjustments between new employees and their jobs, as well as adjustments between office needs and costs incurred.

12 causes and reasons high employees turnover

Here are some of the main causes of employee turnover, and can make companies quit employees. Don't worry, because we will provide ways to deal with every problem that occurs.

  1. Lack of progression

Lack of growth is one of the important factors that can affect employee turnover. Many employees share that opportunities for growth is one of the main factors for career satisfaction. Some ambitious employees not only want a secure job to collect paychecks, but also personal development and have career plans to move up according to their field.

High Employees Turnover

Employees who stop growing, learning, or never referring to higher goals are likely to start finding new opportunities.

You can fix this problem by offering career development such as conferences, workshops, webinars, mentorship programs, and credit towards professional courses. Discuss with employees to make a growth plan and trigger each employee to develop over time.

  1. Incompetent management

Sometimes employees don't want to leave companies, they just want to change or leave their managers. There are many stories about employees who are not strong enough to face pressure from their supervisors, making them more likely to look for new jobs.

Incompetent management can be a major factor for employee stress. Conversely, managers who can support their team members and have qualified skills will inspire their team to show loyalty and high performance.

The way to fix the problem is to provide managers or supervisors with ongoing training to develop their leadership skills. Make regular surveys to check how leaders are performing in the eyes of their team members.

  1. No innovation

The absence of new innovations from the company makes the company unable to compete with competitors, and cannot dominate the market. If left unchecked for a long time, employees may leave organizations to find places that can host new ideas or places that are willing to move on.

The way to anticipate this problem is to accept ideas from employees for their new ideas, and the office always has new innovations to retain employees. If the office can show that they continue to grow and improve overtime, then employees can work together to achieve higher goals.

  1. Absence of friendship at the office

Proximity to coworkers is one of the reasons employees reject a new job offer. One of the other reasons is friendship and a good work environment, making employees think that they will leave their current office. Social ties are essential for every employee. If there is no communication between employees, or feel like strangers or enemies rather than friends or collaborators, then employees have strong reasons for seeking new jobs.

The way to solve this problem is to create team building activities, as often as possible to gather employees and make them talk to each other to foster bonding individually or as a team.

  1. Low payment

Employees have worked hard to produce the best, but the company cannot provide commensurate compensation. The average employee expects a yearly increase in salary, or get a pay boost when they reach a goal or milestones. If companies continue to pay employees at a stagnant rate without progress, then employees will look for places with higher salaries.

Fix the problem by conducting regular compensation reviews to find out whether each employee's payments are up to standard, or listen to employees' requests if they want bonuses or salary increases, but of course with reasonable reasons.

  1. Discrimination

Diversity is an important thing in the office. Every employee wants to feel calm, accepted, and supported to get the best job. Discrimination in the office can increase stress on employees and can cause burnout. Sometimes not all employees can be equally respected in a workplace. But as a manager or higher-ups, you must be able to teach equal respect for different backgrounds, ideas or perspectives.

Fix the discrimination problems by inviting discussions and teaching unique perspectives. Mutual respect for differences, and employees can become support systems for their coworkers.

  1. Organizational restructuring

Organizational restructuring is one of the reasons for forced organizational structure changes. There are many conditions that can occur such as a change in leadership, financial difficulties, organizational mergers, global events, pandemics, or company pivots can trigger layoffs. Even though there are still many companies that retain their employees in difficult times, there are also those who prefer to let go of their employees for the company's financial stability.

The way to fix the problem is the company's ability to prevent it. If you have no other way but to let go of your employees, you can become a reference or recommendation for your employees to other companies, or try to maintain the relationship. If the office conditions have returned to a stable position, you can give employees the opportunity to rejoin the organization.

  1. Live events

Employees leave organizations not only because of their own volition, but sometimes there are urgent conditions and require them to leave the company. For example, moving families, caring for an ill family member, medical conditions, starting a new business, or enrolling in further education. The employee may desire to choose what they should do now and there is no best situation to stay in the office.

The way to fix the problem is offering employees remote work options, talking about flexible working hours, and offering extended PTO. You can provide options for employees to leave sooner so they can finish their business without having to leave the company permanently.

  1. Poor workplace culture

Employee turnover can occur because of a poor workplace culture or toxic culture including gossip, failure to address conflict, unequal work distribution, a lot of punishment, lack of support from management, unfriendly coworker competition, etc. There are still many things that can be a factor for a harmful office culture, but managers or higher-ups must have a way to change the horrible office culture into a comfortable work environment.

Fix the problem with regular employee engagement surveys, holding social events, having icebreaker games that involve all employees so that there are no gaps and increasing harmony among employees.

  1. Overwork

Sometimes managers or higher-ups want the best for the company, without realizing they are ordering their employees to work beyond the allotted time limit. Most of the reasons why someone wants to quit their job is burnout or excessive working hours, beyond the initial agreement.

Fix the problem by reminding each other for standard working hours. Give employees time to take a break or additional vacations for optimal rest time. When it's possible, you can invite every employee to workout together, while thinking about employee wellness.

  1. Lack of appreciation

Recognition and appreciation are important parts for employee retention. Organizations that praise workers regularly will get employees who are loyal and willing to give their best performance at work. Employees will feel their hard work is in vain if the office can only demand, but not provide something that can be a relief for what they are trying to do while working.

Fix the problem by holding employee awards, praising the staff with shoutout chat, peer-to-peer praise, or celebrating milestones together. Employees who feel appreciated will be loyal to the office for a long time.

  1. Retirement

This is something that cannot be prevented because it is related to the employee life cycle. Every career always comes to an end. Even though a worker has a good career track at one company, they must retire because their age or ability decreases over time. Organizations must pay attention to their employees who have entered retirement age, prepare if these staff will resign in the near future.

Fix the problem by making plans for employees who will retire. Give retiree's duties such as selecting successor time to train, guiding youngsters to do the job. Every new crew will not start from zero, because they will be taught by retirees as a shift of responsibilities.

free consultationThere's a lot of numbers about companies recruiting, hiring, and training new employees because of high turnover. You can prevent it by identifying the problem, and trying your best to increase employee retention. Less time spent on recruiting means more time to focus on the company's goals.

That's all about employee turnover information. If you want to find out other information about advancing your business from a financial perspective or tips on how to do business, visit the SMEBrother site and get complete information about small - medium sized businesses.