Employee Turnover: Top Causes & 9 Ways We Prevent It
Valentin Hinov
06 March 2024
The current job market is tough for employers.
Companies are always on the lookout for top talent—and they’re willing to offer big salaries and benefits to attract and retain the best employees. As a result, employee turnover has become a major challenge.
But why does it happen? And what can you do to prevent it?
Join us at Thankbox as we explore employee turnover, its causes, and how you can reduce it so you keep your top talent.
What is employee turnover?
Let’s start by clarifying what employee turnover is.
Simply put, it’s when your workers part ways with your organisation—mainly because you’re not fulfilling a personal or professional need of theirs (e.g. career growth, work-life balance, job satisfaction).
A high employee turnover rate isn’t good because it means that there’s a failing within your organisation that’s pushing your employees away.
Turnaround Employee Turnover With Thankbox!
What better way to show your employees that they’re exactly where they belong than by sending a Thankbox? In just a few clicks, you can show your employees just how much you appreciate them.
What causes employee turnover?
Employee turnover can be pretty complex and is influenced by various factors that are specific to your organisation. However, here are some common causes of employee turnover that can be applied to the majority of cases:
Inadequate employee benefits and compensation: A major reason why employees leave their jobs is because they feel undervalued in response to poor benefits and compensation. If employees believe that their pay doesn’t reflect their contribution to your company, they’re more likely to seek better opportunities elsewhere.
Lack of career development opportunities: High-value employees often leave workplaces where they feel stagnant or perceive a lack of career progression. If you’re a company that fails to invest in employee development or does not promote from within, you can find that your employees are leaving for roles that offer better advancement opportunities.
Poor work-life balance: As remote and hybrid working models gain popularity, maintaining a healthy work-life balance has become more challenging and yet more important than ever. Employees are likely to experience burnout and job dissatisfaction when they’re expected to be available around the clock with no flexibility.
Lack of purpose and engagement: Employees who don’t feel connected to your company’s mission, or don’t find their work meaningful, are more likely to disengage quicker. High performers, in particular, look to work in environments where they can contribute to something larger than themselves.
Poor management: The saying, “people don’t leave bad jobs, they leave bad managers” highlights the critical role of management in keeping employees onboard. Managers who fail to support, respect and empower their employees can cause dissatisfaction and disengagement.
9 ways you can reduce employee turnover
Now that we know the prominent causes of employee turnover, let’s get into the effective steps you can take to reduce it and keep your employees happy.
1. Offer competitive compensation and perks
If you want to keep your top talent and demonstrate that you value their contributions, you’ll need to offer attractive compensation and perks–within your means, of course.
Regularly review and adjust your salaries, benefits, and perks to reflect the market standards so that your employees don’t have the urge to move elsewhere to keep up with the cost of living.
2. Recognise and reward your employees
Show employee appreciation by continuously recognising and rewarding your employees for the amazing work they do. It’s also great to facilitate peer-to-peer recognition so that your employees can feel more engaged and connected with each other.
Fortunately, Thankbox provides a super easy and fun way to facilitate employee appreciation in your workplace. Your team can collectively contribute heartfelt messages, funny GIFs, photos, and even digital gift cards to celebrate achievements and milestones.
This special type of group-based recognition is perfect for strengthening bonds and increasing your employee satisfaction.
3. Foster career development opportunities
Employees are more likely to stay with a company that takes their personal development seriously and provides opportunities for career advancement.
Make sure to create clear career pathways within your company and invest in development opportunities like training programs, workshops, and mentorship. This way, your employees can feel more secure in their future at your company.
4. Promote a healthy work-life balance
Respecting your employees’ time outside the workplace is essential for reducing burnout and increasing job satisfaction.
After all, they deserve to live a life that’s not centred around the company’s needs. Encourage a healthy work-life balance by offering flexible work arrangements and adequate time off.
5. Enhance communication and feedback
Transparent and open communication fosters a beautiful culture of respect and trust in the workplace. Think about it–your employees would hardly think of leaving a workplace where their voices are heard and taken seriously.
Make sure to maintain open lines of communication between management and employees, so your employees feel comfortable sharing their input. Don’t forget to also regularly seek feedback through surveys, one-on-one meetings or anonymous suggestion boxes to see how you can improve working conditions for them.
6. Build a positive workplace culture
A positive company culture where your employees feel valued and part of a community can significantly reduce turnover. Make sure to cultivate a workplace environment that promotes inclusivity, collaboration, and respect.
Some great ways to start include, organising team-building activities, planning group outings, celebrating Employee Appreciation Day, and sending a Thankbox!
Turnaround Employee Turnover With Thankbox!
What better way to show your employees that they’re exactly where they belong than by sending a Thankbox? In just a few clicks, you can show your employees just how much you appreciate them.
7. Ensure management excellence
Managers play an important role in reducing employee turnover because they have a massive impact on the overall work environment. With such great responsibility, it’s essential to train managers to be effective leaders who motivate, support and inspire their teams.
Some outstanding management practices include providing constructive feedback, active listening, setting clear expectations, and advocating for their team’s needs.
8. Implement employee engagement programs
Another beneficial strategy for decreasing turnover is implementing unique employee engagement activities. They’re designed to make employees feel more connected to the workplace and its mission, fostering a fulfilling sense of belonging and commitment.
9. Prioritise employee well-being
A genuine and dedicated focus on employee well-being shows that your company cares about its employees beyond just their work output.
So, make sure to invest in programs and initiatives that support employees’ mental, physical and even emotional health. For example, this could be access to mental health resources, wellness programs, and health and fitness benefits.
Wrapping up
Essentially, a positive work environment and company culture are what motivate your employees to stay on board. After all, the heart of every successful team beats with appreciation, collaboration, and trust. By implementing our 9 tips, we’re sure you can turnaround employee turnover.
So, why not take the first step with Thankbox? Let your employees know just how much they’re valued and create a Thankbox today!
Images: Cover | Office | Freedom | Colleagues stacking their hands on top of each other | Happy friends
