A recent survey reveals that more than half of Canadian employers are experiencing employee turnover rates like never before. In fact, 50% of employees admit they’re somewhat likely to leave their current employer in the next six months. And 3 out of 5 organizations expect to face hiring challenges in the upcoming year.
Organizations that take the time to understand why employees leave and work to rectify the situation will be better positioned to weather the talent shortage.
Why employees leave
Before you rush in with a quick fix, it’s important to take the time to understand the factors that cause an employee to leave their job. Here are some of the main reasons:
Stress: Work-related stress is a big reason why employees leave a job. Working long hours, failing to strike a healthy work-life balance, and ultimately burning out can eventually wear employees down until they can’t take it anymore and need to make a change.
Inadequate compensation: Life is getting increasingly expensive. If their salary and benefits don’t provide an adequate lifestyle, employees will go elsewhere, especially in today’s job market where employees have the upper hand.
Lack of recognition: Employees want to feel empowered and be recognized for their hard work. If they don’t feel appreciated, they might move on.
Poor management practices: Managers set the tone for their employees. If they have unrealistic expectations, don’t lead by example, or create a pressure-cooker workplace environment, employees will struggle to build positive relationships and eventually seek out an employer with better leadership.
Toxic company culture: If an organization lacks core values, runs on competition versus cooperation, or avoids hiring from within, employees can feel frustrated and angry, which can drive them to leave.
Dissatisfaction: Today’s employees seek more than just a pay cheque – they also want to have an impact. Employees often resign because they want to do more meaningful work that brings them a sense of fulfillment.
5 things you can do to improve employee retention
Creating a work environment where employees are satisfied, happy, and productive – and want to stay – doesn’t have to be a mystery. Here are five tips to get you started:
1. Start with solid hiring practices
Before you rush to fill a position, be sure you have a clearly defined hiring process that your HR team can rely on. The goal is to develop a tried and true strategy to find the right people for your teams.
An inside look at Dialogue’s hiring process:
1. Role opening
Hiring teams ensure they have a good understanding of the role and the essential skills required.
2. Application review
We identify candidates with relevant work experience and select the best matches.
3. Screening call
A 30-minute call helps us understand if the candidate is aligned with our requirements and values.
4. Focused interview
The candidate is asked to complete an at-home challenge before this 60-minute interview. In the interview, they will get a chance to present their thought process and project themselves into the role.
5. Career journey interview
This final interview gives us a chance to take a deep dive into the candidate’s work history and identify patterns and experiences that make them a high performer.
6. Reference check
We connect with past colleagues to understand the candidate’s performance potential.
7. We make an offer
Also, keep in mind that there’s more to a candidate than their skills and experience. Hire for potential. Consider how a new hire could contribute to your organization over the long-term and grow within it.
2. Grow your employer brand
Your website and social media are the public face of your brand and first stops for potential talent who are interested in your organization. Before they apply, candidates will check you out online to see if your organization is a good fit for them.
Be sure to build an enticing careers page that will attract the kind of people you’re looking for, and don’t overlook your social media presence. Make sure your Instagram and LinkedIn accounts showcase your company’s positive attributes and reflect all that your workplace has to offer.
3. Give recognition when it’s due
After you’ve gone to the trouble of attracting and training top talent, you don’t want to lose them anytime soon. Giving recognition is a simple yet highly effective way to keep your employees happy.
On a regular basis, let them know that their contributions make a difference in informal, casual settings. Think daily meetings or team chats. You should also seek opportunities to highlight employee contributions in more formal environments, such as presenting company awards or holding recognition ceremonies. An online recognition platform is another simple and effective way for employees to celebrate their wins with one another.
4. Make room for growth
Most employees want to develop their skills and take on new challenges and responsibilities. If they feel like they’re stuck in a rut, they’re likely to look elsewhere for more stimulating opportunities.
Holding quarterly and annual conversations with employees to discuss their goals is a great way to empower them to play a bigger role in their career path. Be sure to create opportunities for both personal and professional development, and discuss with employees which projects they want to work on and what new skills they want to learn. In addition, set aside a budget for training opportunities and encourage employees to take advantage of programs, workshops, and courses that will help them expand their skill set.
5. Focus on employee well-being
According to a recent survey, 20% of Canadian workers who feel stressed or burned out say they intend to look for a new job, indicating that employee mental health can have a serious impact on your organization’s turnover rate.
To foster workplace well-being, it’s important to equip company leaders with the skills they need to recognize and address the signs of stress and burnout. They should encourage employees to use their vacation time and wellness days, assign them projects they’re passionate about, and provide them with resources to manage stress. Mental health services like Dialogue’s Mental Health+ can help employees get proactive about their well-being and seek the support they need when they need it.
Combat employee turnover with a solid retention strategy
Employee turnover can be a major stumbling block to building a positive corporate culture. When colleagues leave, employee morale takes a hit, which can cause a decrease in trust in the employer. A high turnover rate can also hinder business growth, with reduced productivity and lower quality of work as new hires take time to onboard and train. A solid employee retention strategy can help ensure your employees are happy, satisfied, and productive—and therefore less likely to leave.
An inside look at what makes working at Dialogue special:
We foster a strong sense of community: We are surrounded by innovative and caring colleagues who are eager to win as a team.
We prioritize growth: We challenge our people to reach their full potential and support them along the way.
We focus on flexibility: Our employees have the latitude they need to do their best work, and they determine when and where they feel most productive.
Learn how Dialogue’s services can help you improve retention.