There is a belief going around today about the millennial workforce and their tendency to “job hop” over staying loyal to one company. It’s believed that young workers tend to go for the next best thing, and choose to climb the ladder by going from job to job rather than working their way up in one space. The surprising reality, however, is that this is a huge misconception and millennial employees actually stay longer with companies today than workers 25 years ago according to statistics. The average worker in 1983 stayed with a company for an average of 3.5 years, while the average worker today will stay within a role for an average of 5.1.
Businesses who experience high employee turnover might find these statistics difficult to believe despite their truth. Naturally, any business owner wants to keep their good employees working with them, and it’s frustrating to experience a revolving door of employees coming and going.
Why Do They Quit?
Getting to the bottom of why employees quit is necessary if you want to stop this turnover cycle. By taking away these pain points for employees, they have less reason to quit, making them more inspired to stick around and lower your turnover rate. A few common reasons why today’s good employees quit are:
Lacking trust and autonomy – Trust is a huge factor in keeping good employees, and when an employee doesn’t feel trusted in their skills and their work, they’re likely to go elsewhere where they are. Today’s business leaders who micromanage employees show a lack of trust in their workforce, and employees see this quite clearly. Increasing your trust as a leader can increase your employees’ happiness and satisfaction working for you.
Lack of appreciation – When an employee works hard for you, they’d like to feel recognized or appreciated for that work. Otherwise, why exceed expectations and go the extra mile at all? A lack of positive feedback, broken promises, or being consistently underpaid despite a growing skillset are all ways today’s business leaders lack in showing appreciation.
Little opportunity for development and growth – When an employee comes to work every day and works hard for you, they want to know they’re going somewhere. They want to feel as if they’re taking steps on a path that will grow them professionally. If you cannot provide any opportunity for development or growth in their position, they’re likely to go elsewhere with someone who will.
Avoiding The Turnover
High employee turnover rates are damaging to businesses for a few reasons. First and foremost, it’s costly to train and retrain employees as they cycle through the same position. Second, a high turnover rate at a company will present as a huge red flag for prospective talent. Avoiding high employee turnover means getting to the bottom of why employees are leaving in the first place, and taking a constructive look at how your business contributes to these actions. For more on retaining good employees, contact us at Smart Business Doctor LLC.