Losing top employees may come at a high cost to your business. Searching for replacements, training new hires and waiting for those new hires to hit their stride can chew up a lot of time and resources, affecting overall productivity.
Many managers overlook how the departure of a good employee affects the team, says Dianne Hunnam-Jones, district director of Robert Half in Toronto. “It breaks the team dynamic, so now your team goes back to ground zero,” Hunnan-Jones says.
Every staff will naturally experience turnover. But, according to a survey by the Robert Half finance and accounting division, there are a few key factors that push employees out the door:
1. Inadequate salary and benefits
Of the 400 Canadian office workers Robert Half surveyed, 30% say inadequate compensation is why good employees quit their jobs.
The financial services sector has a low unemployment rate, Hunnan-Jones says. So employees in this industry have many options when it comes to pursuing their career. As a result, it’s important that you, as an employer, have a competitive offering.
“Benchmark your overall compensation package on a regular basis because it moves so quickly these days,” Hunnan-Jones says. “Before you know it, your salary offering is out of date.”
Providing flexible working hours and more vacation days is another way to sweeten the compensation package.
2. Unhappiness with management
The second-highest reason employees quit, according to the Robert Half survey, is they’re dissatisfied with management.
“The number one tip [for managers] would be to look in the mirror,” Hunnan-Jones says. “Look at yourself as a manager and a leader, and evaluate your own skills. Really look at your own style and approach.”
People love to be included in the making of decisions that affect their jobs, Hunnan-Jones says: “Do you involve the team in those decisions, or do you sit in your ivory tower and say, ‘I think this is what should happen?'”
3. Limited opportunities for advancement
In addition to surveying office workers, Robert Half asked more than 270 chief financial officers (CFOs) why they think their best employees quit.
The top answer among CFOs, with a 41% consensus, was that employees leave because of limited opportunities for advancement. Only 15% of office workers, however, agreed that this was the main reason for quitting.
While employees do have much less incentive to stay if there aren’t opportunities for career growth, it’s less of a factor than compensation and their satisfaction with management.
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