Employee Turnover – 5 Causes and How to Fix Them

Employee turnover is one of the most critical factors when considering a business management strategy. For a company to succeed, it must first ensure that its employees are set up to succeed.

Ensuring that your employees feel fulfilled, productive, and comfortable is essential for creating a desirable workplace environment. In turn, this creates a space where staff can develop professional relationships with an organization that they trust and are loyal to, motivating them to choose to stay and grow with the company rather than move on to other opportunities, decreasing the rate of turnover.

In this article, we’ll cover: 

What is Employee Turnover?

what is employee turnover

In a business context, employee turnover occurs when a company hires new employees to replace other employees who have left the organization. Most businesses will experience some sort kind of annual turnover. However, uncovering the reasoning behind employee departures is critical in determining whether or not your work environment is hospitable or toxic.

Multiple factors can influence whether an employee chooses to remain in their current position or move on to a different opportunity.

What are the Primary Causes of Employee Turnover?

1. No Options for Career Progression

It is natural for employees to want to see an upward trajectory when it comes to their careers. If a company does not indicate that they are invested and willing to contribute to employee growth and development, it will likely experience higher employee turnover rates.

The negative consequences of this are significant. For example, a potential new-hire could see that a business has a high employee turnover rate, which would prompt them to wonder what caused it and question whether it is somewhere that they would want to work.

It is challenging to remain motivated when an employee has no way to move forward professionally. A lack of direction can be a primary catalyst for employee turnover. Creating incentives and opportunities for increased professional growth are essential in giving employees a reason to work hard.

2. Employee Burnout
employee turnover causes

As much as having no promise of career progression can be demotivating, burnout is another instigator for increased employee turnover rates.

With the dominant population of the workforce skewing increasingly towards Millennials, the importance of a work-life balance is at the forefront of many applicants’ minds. Work environments where employees feel stressed and overworked can breed scenarios where they feel pressured into working extended hours or taking on more than they can handle.

A stressful work environment can have negative impacts on work performance and employee welfare. When this occurs, they will likely leave to find a job that awards them a more appropriate balance between time spent in and outside of work.

Employees should receive enough work to feel challenged and productive while also ensuring that they are not assigned unreasonable amounts of tasks. One surefire way to prevent burnout from happening is to promote open communication and create an environment where employees feel comfortable enough to admit when they are feeling overwhelmed. Businesses that put the well-being of their staff first are likely to experience less employee turnover.

Burnout is something we have all heard about, but what is it and how can you address it? Learn more at  How Burnout – 10 Simple Way to Get Back on Track”

3. Lack of Recognition

It is crucial for employees to feel appreciated and receive recognition for their accomplishments. Acknowledging when an employee performs well is an excellent way to ensure that they feel valued and will likely result in a decrease in employee turnover.

Not providing adequate feedback on employee performance can cause employees to feel burnt out, unrecognized, and under-appreciated.

Beyond simply pointing out when an employee has done well, establishing incentives and instituting reward-based initiatives is a fantastic method to boost employee morale, create a playfully competitive work environment, and celebrate the successes of employees.

4. Not Receiving Appropriate Feedback

Within the same realm of not appropriately acknowledging successes and accomplishments, a business’s employee turnover rate is likely to increase if management does not provide employees with sufficient feedback on their job performance.

A majority of employees want to perform well and meet the needs of their superiors, clients, and customers. However, if they do not have access to constructive assessments where they can personally reflect and gain insights on how to improve from management, they will likely question if their contributions are recognized.

Establishing a platform where employees can receive feedback is crucial in not only their career development but in creating a personal relationship between the individual and management.

5. An Uncomfortable Working Environment

Inhospitable working spaces can cause employees to feel awkward and uncomfortable and contribute to negative consequences like losses in productivity, increased mistakes, and a decline in employee morale. Thus, companies that do not devote resources to creating an inclusive, safe, and welcome environment are likely to see increased employee turnover rates. 

Selecting appropriate management can also play a significant role in how comfortable employees feel in their roles. If a manager or superior is perceived as inappropriate or unapproachable, they are less likely to want to work for that individual.

Employee morale is a crucial factor when managing a business. Find out How To Boost Employee Morale With These 7 Powerful Tactics.”

Key Takeaways for Understanding Reasons of Employee Turnover

Employee turnover can be a telling indicator of employee morale within a business and a meaningful sign for potential applicants looking to gain a deeper understanding of what working at a particular company may be like and some of the obstacles that they may face.

While it is a natural progression for employees to move on to different opportunities, understanding the primary reasons behind employee turnover can provide company management with fantastic insight. This information can then be utilized to create the most optimum working environment for employees to ensure they feel appreciated, and receive further opportunities to grow.

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Written By Emily Rumball

A Content Writer at Advesa, Emily is a self-proclaimed tea addict (her favourite being a nice, strong English Breakfast), animal lover, and eager traveller. When she isn't jet-setting off to the next far off destination, she enjoys spending quality time at home in Vancouver.