This guest post is written by Leadership Directions, an Australian learning and development organization, that delivers leadership training and management short courses. They assist emerging leaders, supervisors and frontline managers to become great leaders.
What if you, as a manager, could take steps now to prevent your staff from resigning? Moreover, what if you have already unknowingly contributed to an employee’s sudden departure? Unfortunately, it’s more than likely the case. Staff don’t leave organizations; they leave their managers.
Gallup research conducted an employee turnover survey to determine the major reasons that influence voluntary employee resignations.
It is interesting to note that while only 16.5% of respondents identified ‘management/work environment’ as their major reason for leaving. Most managers normally have control of most of the alternative reasons they identified.
When you consider that managers usually control (or at least influence) career advancement decisions, pay/benefits, rosters and work scheduling, managers could potentially be the cause of 78.1% of all voluntary resignations.
The true cost of staff turnover
It’s no secret that there are costs associated with employee turnover. However, when you see that cost quantified, it helps to put things in perspective. JDA Professional Services suggests that it would cost businesses between $120-180,000 to replace an experienced employee on a $60,000 per year salary. That’s between 200% and 300% of the base salary to replace just one staff member.
Solutions to reduce voluntary staff resignations
Know what motivates your employees. Open the lines of communication with your employees to discover what motivates them. Once you have identified what their key self-motivators are, you should consistently use them to your advantage to increase their overall motivation.
Offer regular, constructive feedback. Providing consistent feedback will offer encouragement, support, corrective measures, and direction. Ensure you conduct staff reviews routinely to gain an insight into employee job satisfaction. Every organization should also regularly review how effectively managers and supervisors are communicating with their team members.
Create a clear career pathway plan for each employee and ensure they understand the opportunities available to them so that they can get a glimpse of their potential career progression within the organization.
Offer pay increases or additional benefits. By itself, this won’t convince a valuable employee to stay, but it can certainly help. Initiate a salary increase without being asked by the employee. Don’t wait till until annual performance reviews to announce their salary increase; surprise them.
Provide a positive work environment. Your leadership team can establish a healthy environment for staff to work in through effective communication, employee empowerment and promoting an enjoyable organizational culture.
Become more flexible to the scheduling needs of your employees. By increasing workplace flexibility, you will enhance the work-life balance of your staff, improve worker loyalty and preserve their physical and mental welfare. However, this can be tricky at times depending on the size of your organisation.
In summary, commit to making your staff happier, communicate with them, and encourage and motivate them to succeed in their role. In time, you be able to retain more of your valuable employees, and if they do leave they will be leaving the organisation and not the manager.