Are you wondering why your business has such a high employee turnover rate? Is the organization struggling to attract talent? A recent study conducted by Kenexa, which administrated a national-wide survey on employee engagement sampling thousands of employees revealed interesting statistics. Results indicated businesses are often perplexed on the reasons why employees separate from the organization; in fact over 40% of employers reported that the number one reason tends to be “poor relationship with manager”…yet only 15% of employees agree. Many companies incorporate exit interviews or surveys in order to assess the reason for departure yet how valid/valuable are the responses from employees who have already decided to leave?
During the off-boarding process some employees are honest, provide constructive criticism, and applaud the company for a job well done, while others utilize the opportunity to unload grievances, gripe about the companies insufferable polices, or berate colleagues. According to a Forbes article, many HR professionals have mixed feelings about the process; some say it provides invaluable information, while others go through the motions looking for keywords to mobilize actions on problems.
The essential tip is to ensure the interview and or survey has high validity; meaning the content must ensure that the results are an accurate reflection of the dimension undergoing assessment i.e. Why are they leaving? What could have the organization done better to avoid their departure?
Despite this, the number one reason for employee turnover was deemed to be “lack of opportunities for professional development “showing 30%, while the number two reason was inadequate compensation at 28%. Focusing on number two, providing competitive pay is critical; rewarding employees with solid pay is one of best ways to hold on to the great people you have in your organization. Offering competitive salaries may be viewed as a double edged sword; offering competitive pay can be expensive, yet high employee turnover is even more
expensive while affecting the bottom-line, it also damages the synergy/culture within the organization.
Where does your business stand on the scale of competitive pay? Are you losing employees to competitors? The Growth Company offers wage and salary surveys; scanning your competitors and assessing their pay scale to compare to your firm. Why invest the time, energy, and dollars training/developing talent for your competitors?
© Marcus Bobbitt is the COO of The Growth Company Inc, a Human Resource consulting firm based in Anchorage Alaska.