The worst nightmare of any HR manager is employee turnover. Research indicates that about 4.5 million people quit their jobs every month. So, we’ve put together seven major causes of employee turnover and included one unique solution purposefully designed to stem the tide.

What are the Causes of Employee Attrition

Here’s a cursory look at the reasons for high staff turnover across all industries:

• Poor compensation
• Lack of career development
• Undervalued employees
• Poor management
• Overworked employees
• Horrible bosses

Now, let’s examine these factors in depth and recommend the best solution.

Poor Compensation

The number one reason most employees quit their jobs is poor compensation. Every worker wants to be paid their worth. The idea of working like a donkey but living on a mouse’s salary is an affront to most employees and they wouldn’t waste time jumping ship if the right opportunity came along.

Undervalued Employees

Everyone wants to belong to a workplace where their views, inputs, and contributions are valued. They want to be seen, heard and appreciated. So, if they are in an environment where their skills are undervalued, then expect their resignation letter soon.

Being Overworked

This might seem innocuous, but many employees hate those extra work hours, especially when they aren’t adequately compensated or their sacrifices are overlooked. Interestingly, there are employees who, if they had their way, wouldn’t go the extra mile even for a million dollars. To them health is wealth. It wouldn’t make sense to make more money only to use it all on stress-relieving medications and treatments.

Inflexible Workspace

Another seemingly benign reason people leave a workplace is the lack of a flexible work environment. This might surprise you, but 78% of employees prefer to work from home with a further 42% willing to sacrifice their jobs for a role that allows them to do so. Interesting, isn’t it?

Lack of Career Development

Humans are naturally progressive and so should their careers. Employees who feel stuck in a certain job without real, measurable growth are more likely to go AWOL. Moreover, career progression comes with better remuneration, more satisfaction, and an overarching sense of fulfillment. 

Horrible Bosses

A horrible boss can be a pain to work under for employees. They not only dampen the spirit of those they manage, but stifle workplace efficiency and productivity. Harken back to that boss who would snap at you at the least provocation or wouldn’t believe you when you called in sick. Never had a boss like that? Then consider yourself lucky.

Poor Management 

Bad bosses are also poor managers who lack the skills necessary to lead their organizations. They don’t pay their workers appropriately, lack diversity at the workplace, stifle career development, and overwork employees until they burn out. Over 50% of employees who leave their jobs place blame on poor management skills.

How Does Employee Turnover Affect Your Business?

Companies suffer many devastating effects from employee turnover including loss of knowledge and skills, financial constraints, and most importantly, decreased productivity. Frequent departures can also affect team morale and efficiency by making the remaining employees feel undervalued. Ultimately, it can trigger the company’s demise if the business doesn’t take proactive steps to curb the trend.

What is the Solution to High Employee Turnover?

There are several solutions to high employee turnover, including better compensation, excellent leadership skills, career advancement opportunities, and valuing every worker. However, the number one question remains, “How do you know the exact problems bedeviling employees?” 

You see, determining the exact reason(s) for employee attrition sounds easy on paper, but is practically an uphill climb. Workers leave for various reasons including reasons that might not be listed in this article. 

So, to solve the problem, some companies conduct extensive surveys to determine employee sentiment, which can be a daunting task for midsize to large corporations. Don’t even get me started on the cost, time, and human resources involved. Even for smaller companies, it isn’t a walk in the park.

Use Our Solution: Worksense

That’s why we’ve designed Worksense, an AI that checks employee turnover by tracking sentiment to identify patterns and changes across the workforce. It doesn’t wait for attrition to occur but rather takes proactive measures to identify employee hotspots in real time. Based on this data, Worksense provides tailor-made solutions that speak to the heart of the employee’s problems.

But Worksense doesn’t stop there. Once the suggestions are implemented, it tracks the impact of its solutions and measures their progress over time. 

Don’t believe us? Schedule a demo with Worksense today to see for yourself.

Bonus: FAQs

What is Staff Turnover?

Staff turnover is the rate at which workers desert their jobs over a period of time. It is often caused by low compensation, bad managers, inflexible work practices, and a lack of career development.

What are 2 types of Employee Turnover?

The two types of employee turnover are voluntary and involuntary. Voluntary turnover refers to workers who depart on their own volition, while involuntary attrition refers to employees who leave due to uncontrollable circumstances.

What does Employee Turnover Rate mean?

The employee turnover rate is the number of employees who’ve left the company divided by the average number of employees over the same period multiplied by 100%.