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3 of the Most Easily Ignored Reasons for Voluntary Employee Turnover

May 30, 2017

When it comes to your company’s voluntary employee turnover, there are likely a plethora of reasons contributing to the cause. Often, companies are quick to hone in on just a few reasons why turnover is occurring, as they feel those must be the primary culprits. However, from Select International’s research, we understand that employee turnover is commonly caused by several factors. Certain areas can be easily overlooked, especially if you aren’t aware of the impact these factors can have on your turnover rates. This blog will discuss three areas that organizations tend to overlook.

1) Not Being an Employer of Choice

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Let’s face it, if you aren’t an employer of choice, it’s likely that your best people, and maybe some of your not so good people, are going to try and get a job with the employer of choice. Turnover in this instance is just plain natural. I mean, can you blame them? Often, organizations are quick to assume that their hiring process may not be engineered properly or isn’t working properly because they are losing good people and not retaining talent. However, turnover in this instance is bound to happen, especially if the employer of choice is hiring. Most people don’t like to pass on better opportunities.

One step organizations can take is to do a market analysis. In this analysis, the organization should consider what advantages the employer(s) of choice in their area are offering compared to what their organization offers. What is the starting salary? What benefits do they offer? Are there opportunities for advancement? What cultural benefits do other organizations offer that our company does not? These are just a few questions that should be investigated in this analysis.

2) Lack of Growth Opportunities

If your organization does not allow employees to have some flexibility in their career path, or allow employees to achieve obtainable career goals, turnover could result. Research has supported that opportunities for growth and development are important for millennials in their career path. Ultimately, if your organization does not offer growth, it may be harder for you to retain millennials.

If you uncover that employees are leaving due to a lack of opportunity within your organization, consider creating training programs and/or advancing job responsibilities, especially those that might be enticing to employees (e.g., more task variety, more autonomy). Employees who have a need for achievement will then have the opportunity to take on different work than they are used to. Another option is providing a mentoring program to help certain employees grow. All of these options are relatively low-cost and provide or assist in growing employees internally.

3) Candidate Fit

When candidates do not “fit” with an organization, it's very likely they will turnover. When we say “fit,” we are referring to things such as the work itself, the organization’s culture and values, the group of people the individual works with, and the actual work environment. Essentially, these are all things that research has proven to affect one’s satisfaction with their career.

Incorporating steps into your company’s hiring process to assess for candidate fit is a best practice in determining if candidates will be happy with their work, and ultimately, not be inclined to turnover.

Although there are several factors outside of the control of an organization's steps in their hiring process, incorporating these tools upfront is a best practice that many organizations are following to determine if someone will stay with an organization. Consider asking a candidate about their work preferences and what environments they enjoy the most and least during an interview. Additionally, certain assessments can give you an indication of a candidate’s fit for different working environments including manufacturing, service, and retail.

 Reducing Turnover Starts with Hiring & Developing Great Leaders

Lindsey Burke Lindsey Burke is a Senior Consultant based in the Pittsburgh office of PSI. She is largely responsible for client support and managing clients in industries including manufacturing, sales, and healthcare. Lindsey completed her M.A. in Industrial and Organizational Psychology from Xavier University and earned a B.A. and B.S. in Psychology from Kent State University.