Why Employees Really Decide To Leave
By: Tim Augustine
And what you can do about it.
It's a line most employers don't want to hear from a hardworking employee: "I've decided to resign." There are many reasons for resignations, but some of the most common include:
"I found a better opportunity,"
"My decision was based on compensation,"
"I want to expand and learn new things," and
"I am leaving for personal reasons."
However, are these the real reasons why employees resign? After compiling eight years of data from exit interviews, organizational surveys and benchmark data, I've discovered two dominant factors that influence a person's decision to leave an organization.
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The financial health and stability of the company
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The health of the company culture including the work environment and the manager/employee relationship
The uneasiness your employees feel related to these factors can be easily remedied. You need to address the root causes for their feelings and engage them in such a way that helps them provide solutions to the perceived problems.
Addressing your company's financial health and stability
Many people leave their organizations because of fear. The company is experiencing a downward spiral, its losing customers and there are rumors of a possible sale, closure, even bankruptcy. In today's economy, it is hard to find organizations that are not experiencing some challenges. However, alleviating some of the anxiety around this factor can help you keep your best employees.
First, put yourself in your employee's shoes
From the sideline, it may seem like things will never recover. Your employees want to protect themselves, their family and the company, in that order. If you are a manager in this type of situation, you need to understand this. Empathize with your employees. Develop a plan to communicate the recovery strategies of the organization.
Next, get them involved
Engage your employees. Use their ideas, skills, motivations and talents to help your team implement a recovery strategy. If employees feel that they are part of the solution, you will realize a significant increase in energy, productivity, and retention.
Addressing company culture
In my research, I discovered that 71% of applicants interviewed left their organizations because of the culture. In fact, many applicants pointed directly to their managers as the primary reason for leaving.
As a manager myself, I realize that we are often used as scapegoats and that our job responsibilities are often in between organizational goals and employee relationships. However, managers influence such things as team communication, career success, employee development, and job stress as well as employee motivation. Here are some strategies that you can deploy to positively affect the way your business culture is perceived and experienced by your employees.
Managing new employees.
An organization's orientation program is the most critical process that can dramatically improve employee retention. Most employees decide if they will stay with an organization within the first 90 days. Therefore, I have outlined five specific areas that a manager should address within the first three months.
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Company Knowledge: New employees are interested in understanding an organization's history, mission, values, vision, and direction. Spend a considerable amount of time focusing on your company.
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Position Knowledge: Spend time reviewing the role and responsibilities of the new employee. As a manager, you need to describe your expectations as well as the expectations of the your team. In addition, describe the tasks and activities associated with the role and specifically highlight the critical success factors that will be used during performance reviews and evaluations.
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Process Knowledge: This refers to understanding how things run within the organization. Do not expect an employee manual to cover everything. Help the new employee understand team norms and politics, organizational policies such as work hours and attendance, and most importantly, inter-team communication.
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Product / Services Knowledge: New employees should have a solid understanding of the products and services the company provides. Use the experts on your team to educate the new employee and highlight the reason customers buy from your firm.
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Personal Effectiveness: The last area of focus should be the development of the new employee. Address both the personal as well as professional development of the new employee including training and educational opportunities, personal growth and career advancement.
By implementing this type of orientation program, you will realize a significant improvement in employee retention as well as your new employee's motivation, energy and commitment starting on the very first day of employment.
Retaining existing employees
People want to feel that they are a part of something and they are making a difference in the organization. You need to understand that communication is a critical component of retention. The following are simple strategies that you can use to manage and communicate with your team.
Meeting Effectiveness
Most organizations spend an enormous amount of time conducting meetings. However, when it comes to meetings, most organizations confuse activity with progress. In addition, the direct and indirect costs associated with the meetings are substantial. Your meetings should include an objective as well as measurable goals associated with the activities discussed. Make sure you understand the different types of meetings and align each type with your objective.
Continuous Feedback
Develop a culture of open communication and feedback. Spend time with each employee you support and allow them the opportunity to provide their thoughts and ideas as well. During these conversations discuss the following topics:
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Company: Highlight recent accomplishments and ask for suggestions.
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Team: Discuss the team's performance and ways to increase productivity.
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Manager: Use this time to receive feedback on your effectiveness as a leader.
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Individual: Discuss the person's positive strengths as well as areas of improvement.
Becoming an employer of choice -- one that people feel committed to and motivated by -- takes knowing the real reasons why employees become uneasy with their employment situations. You'll find that addressing company problems, making employees part of their solutions, and openly communicating your culture will go a long way in retaining your best people.
