Top Reasons for Employee Turnover: Report
In the era of mass layoffs, a study revealed the top reasons for employee turnover in 2022!
The 2022 job market has favoured employees and job seekers , prompting them to consider alternate career options and employers rather staying in and affecting with mass layoff. This is also a challenge for the organisations to understand and address the retention and recruitment issues. A gray pac to stem the loss of employees and attract job seeker’s.
Reports pointed out that earlier method to keep employee togather with offering reasonable pay doesn’t works now ! Employee considers better workplace on a budgetary pay out.
Top Reason s for Turnover
The SHRM Research Institute surveyed around 1.5k HR Professional in US to know the Top reasons for the what professional considered to move out from the Organisation. The respodents ranked 12 common reasons to exit.
Inadequate total compensation was the most common reason employee leave their employer. Respodents rated addition budget required to address the inadequate compensation issue.
With the inadequate total compensation, a lack of career development and advancement, and lack of workplace flexiblity was the top three issues propelling workers to exit.
Challenge #1 Compensation:
As the top reason for employee turnover, around three-forth (74%) HR professionals describe inadequate Compensation in form of direct pay, bonuses, profit sharing and so on- was the top reason employees leave their organisations. Only 14% respodents described that their current budget was adequate.
The research survey found, typical organisation would need a 8 to 10 percent increase in employee compensation budget to address turnover.
Solution Recommended:
The resreacher’s recommended low or no cost solution to impprove compensation issue:
- Introduce total reward statement- a simple, individualized document that lists all componenets of total rewards in one place. Include the indirect benefit cost, company’s contributes towards employee benefits. Not just focus on take home, instead list all the total rewards items for a broader view for employees.
- Increase transprancey that will alter employee perception towards organisational approaches towards compensation and benefits. Communicate it well with employees. Let the employees know what you do to ensure that your total rewrds package is at or above the market. It will help!
Challenge #2 Career Development and Advancement:
The second top reason was pointed out by the HR professionals for their organisation was Lack of career development and advancement. Sixty-one percent of respondents listed it among the top three causes of turnover; 21 percent of respondents identified it as the top cause.
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Solution Recommended:
The resreacher’s recommended low or no cost solution to impprove Career development and advancement issue:
- increase and communicate about promtion from within.
- Examine orgnisational policies- hiring and promotion and find out a way to include current employees. Publisize your internal promotion through internal communication channel when occure.
- Conduct a career path study by appropraite HRM system. i.e. consider individual’s career paths and identify common advancement paths in company. Communicate and publisize it well to show advancement opportunities.
- Privide access to online learning. Department and function based low cost programs with consideration of company experts view. And connect the stated qualification and position.
Challenge #3 Workplace Flexibility:
This is third higest rated reason for employee turnover, cited by 43% respodents. Individuals interpret the workplace flexiblity as related to the ability for employees to work remotely, but where, when and how work is performed can be interpretated in a number of ways, researchers noted.
Solution Recommended:
The resreacher’s recommended low or no cost solution to impprove Workplace Flexiblity issue:
- Consider remote work workforce segament wise. Provider necessary equipments and infrastructure for remote workers.
- Introduce one-to-one brainstroming and talk system to gauge theirs needs and flexiblity approaches. Like starting with 30 minites later on alternate weeks and other may prefer to come office but work for 10 hours days
Other reasons employees say “goodbye”:
Challenge #4 Unsustainable Work Expactations:
Thirty percents respodents HR professionals rated unsustaainble work expactations as a factor in turnover.
Solution Recommended:
The resreacher’s recommended low or no cost solution to impprove unsustainable work expactations issue:
- Conduct work reviews. Add new tasks into the managers and employee kitty, without nothing eliminated. Reduce lower values responsibilities or delegate. Drop the “nice to have” tasks ! Generate a quarterly report.
- Thanks employees for their increased efforts, and let them know the organisational actions to situation and resolution on the way.
- Communicate to clients and customers for current and forthercoming short staffing experiencing by organisation and ask them to keep that in mind when intract with staff.
Challenge #4 Uncaring and Uninspiring Leaders:
This is the fifth ranked reason for employee turnover by HR Professionals, often inspired by the individual relationshipthat employee have with each of their leaders.
Solution Recommended:
The resreacher’s recommended low or no cost strategic solution to impprove uncaring ana uninspiring leadership issue. A combination of coaching and leadership role reconstruction or moving some individuals out of these role intirely.
Other hand the researcher’s recommended:
- Develop a platform of CEO or C-suites leaders communication to all the organisations leaders how to live the company’s values.
- Manage leaders weakness.
- Modify Organisation’s perfrmance management process. Consider adding leadership competencies and company values as masures as manager are evaluated. In some cases, it will be helpful to add the key performance indicators related to survey result or employee turnover rates.
The survey report is based on the respodents responses which are unique to their organisation. Similarly, the reason for turnover are unique to each company. The first step to gauge your organisation couse for turnover by using survey techniques- Ask Employee, Interviews and Focus groups- What issue might be driving them away, the report noted.
Organisation can use external agencies to gauge employees sentiments as an another option to exit reason.
"The first step for the HR professionals is to identify the key reason why their employees are leaving." Then they can benchmark those reasons and the available budget against nationwide data and identify strategic solutions to advise the company leaders.
