Reasons Why Your Employee Retention Is Low

According to the U.S. Bureau of Labor Statistics, the average time an employee spends with the company is 4.1 years. Is the staff retention in your office lower than that? If the answer is yes, you might have a problem with employee turnover.

You probably don't appreciate staff members leaving frequently. Not only does it take effort to find a replacement, but they need time to settle, and that can affect productivity. What if you could identify a reason why employee retention is low?

In this article, we are focusing on what causes issues with staff turnover. Here is how you can improve conditions in your workspace and ensure workers stay there for longer!

4 Reasons for Low Employee Retention

There could be a variety of reasons why an employee left. But if leaving has become a trend, HR managers and team leaders should ask themselves why that's happening. Here are the top five reasons why a company might be facing low employee retention.

1. Lack of Professional Growth

An employee shouldn't feel stuck in their position. If they are doing a simple desk job, they should feel there's room to advance if they prove themselves.

Some employees have the potential to learn new skills, and it's the manager's task to recognize that. The company can sponsor their training for mutual benefit. Mastering new skills will ensure better productivity and profit, which means that it will be a smart investment for the business's future.

2. Toxic Work Environment

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Nobody likes to work in a toxic environment. The good news is that toxicity in a workplace is usually easy to recognize. Do you have team members that yell or don't talk to each other? Were there multiple sexual harassments or other complaints in the last several months?

A manager should "feel" the atmosphere in the office. If you are successful at resolving conflicts and securing an optimal work environment, it increases the odds of keeping your employees for longer.3. Poor Pay and Benefits

Is the salary you are offering lower than the industry average? Did the company make a huge progress in the last year or two, but the employees didn't get a single raise?

Even if it's not the top priority for an average worker, each employee has to consider finances. If they are doing a good job, it's natural to expect adequate compensation for it.

That's why you should sit down and see if there's room for changes in the company's policy. You can analyze the cost of employee benefits to find a way that will make your workers happier but also fit your budget.

3. Lack of Employee Appreciation

Couple carrying carton boxes while moving out of old home
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Sometimes a simple thank you would work to let an employee know they feel appreciated. But if they finished a critical task on time, how about praising them publicly at the next team meeting? You can also give them a bonus for staying overtime.

Another way to make an employee feel valued is to consider their opinions. Make sure to approach them occasionally and get information about the completed projects.

Not only they'll feel valued, but you'll learn what can be changed for the better in the office. That can ensure an increase in sales, which is a part of every selling a business checklist out there. Improved business results will help you to sell the company for a higher price.

4. Hiring the Wrong Employees

Sometimes it helps to return to the start. What if the reason for a low employee retention is you picked the wrong staff in the first place? For example, a shy person dealing with social anxiety isn't the perfect one for a secretary.

Perhaps an employee isn't the right fit for the company values or culture. Perhaps everyone in the office is local, and the new team member has problems fitting in because he only arrived in the city? It's not easy to find the perfect match for each position, but it's also a bad move to force someone to do a job that's evidently not suitable for them.

Final Thoughts

The first step of dealing with a low employee retention is learning the reasons behind it. Once you identify the problems, you can proceed to solve them. Sometimes small changes like free coffee or other employee fringe benefits can make a huge difference. But even if it takes more effort, resolving issues in the office is critical for the company. Thanks to the reduced turnover and content employees, you'll enjoy an optimal working environment and better working results.


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