Many companies are experiencing higher-than-normal turnover rates these days. Job satisfaction in some industries are at all-time lows. We also live in an area where employer monitoring of employees is at an all-time high. Accidentally click on an email that takes you to your LinkedIn profile and you might find yourself having a conversation about your workplace happiness.
Employers have a right to be concerned about high turnover rates. The costs of training new employees are much greater than the cost of maintaining the current work force. Instead of creating Big Brother scenarios that make good people want to leave their job, however, some are looking to actually answer this very important question.
Why are so many people quitting their jobs?
And the answer, it turns out, is pretty simple: dissatisfaction.
Dissatisfaction with the Boss: The #1 Issue
Most people have had at least one bad boss in their life. It’s the one person who is always looking over your shoulder, telling you everything that you do wrong, and then takes credit for all of the hard work that you do. Employers are finding out that employees aren’t quitting jobs. They’re quitting bosses.
To stop this issue, a multi-faceted approach is being implemented. Ongoing educational opportunities for entry-level and mid-level managers is becoming mandatory. Larger companies are also tracking employee behavioral patterns through ID swipes or building entries/exits to determine if someone could be interviewing for a new job. If those patterns are positive, then a closer look at that employee’s boss happens to make sure the supervisor isn’t the cause of losing a great employee.
The Problem of Employee Undervaluation
“It’s 2008. Our economy is in the gutter. We need to be lean and mean.”
It’s something many companies told their employees nearly a decade ago. It made sense then. Unfortunately, some employees haven’t seen a raise since then. Others have had to endure pay cuts or benefit reductions. Fewer people are doing the same work and it leads to burnout.
“If you don’t want this job, there are a dozen people who will take it in a heartbeat.”
Undervaluation in certain positions is another reason why good people are quitting in droves. Telling people that they are expendable only increases the chances of someone quitting. This is why internal recruiters within some companies have started to contact employees directly to let them know of new job openings that may have better hours, better pay, or both.
Credit Suisse starting doing this and estimates it has saved over $100 million in rehiring and training costs.
Avoiding the Counteroffer Scenario Completely
So maybe you found something great when you accidentally clicked on that link to LinkedIn. You got a pretty great offer. You decide you’re going to accept it, but then as you tell your boss that you’re quitting, they agree to beat that offer you were given by 10%. What do you do?
If you’re like half of the people in this type of scenario, you’ll take the counteroffer and then wind up quitting in 12 months or less.
For this reason, employers are being more proactive about identifying their best talent. Those people who are always going above and beyond expectations. Then they are offering them something to recognize that offer – a raise, a couple extra vacation days, or flexible scheduling are popular options.
Why? Because recognizing the extra effort is also a reward for that employee. Add in the perks and the appreciation offered becomes the chance to build loyalty with that employee.
Sometimes people quit jobs because they need to move or the circumstances of their life has changed. Employers can’t really do anything about those employees leaving. When there is dissatisfaction present, however, then employers can and should do something. The evidence is clear: when an employer is proactive about keeping their best people, then turnover rates can be lowered.