Causes of Low Employee Retention Rate
Employee retention rate is a metric that measures how long employees stay with an employer compared to other employers. Retention rate can help you understand the overall level of employee satisfaction with your company and identify areas where more work needs to be done for retention. According to pain management specialist Jordan Sudberg, causes of low employee retention rate include;
1. Poor management- It comes down to how effective your management team managed their employees. Suppose your manager didn’t provide feedback, provided poor performance reviews, kept bad hiring practices, or had other negative management approaches to dealing with their employees. In that case, you’re going to have trouble retaining them.
2. Lack of support from senior management – A high lack of employee engagement may also come from senior management who don’t show enough support for you and your team. When they don’t provide the resources necessary to meet goals, plan adequately, or even give guidance, they’ll quickly become enemies of those under them.
3. Unclear vision – Employees feel lost trying to determine if their job role aligns with what your company wants to accomplish. They’ll often become disengaged because they’re unsure how their skills will help accomplish these goals.
4. No recognition – Another common issue is giving credit where credit is due. This is particularly important if you want to retain your best workers. Your best employees want to know your expectations for them and when they hit them; this motivates them to keep doing a great job.
5. Poor communication – Communication breakdowns happen between employees and managers. These sometimes lead to misunderstandings or miscommunications that are deal-breakers for many people. You need to address any issues that arise, so you’re making sure everyone understands each other clearly.
6. Unclear career path – In today’s uncertain economy, potential employees are especially sensitive to whether or not their future career development is clear. If an employee doesn’t understand the direction of your company or why it’s moving in that particular direction, they might decide it’s just not worth it to stick around. Make sure your employees know exactly why your organization is changing to adapt to new circumstances and what that means for them.
7. Low morale – Morale plays a huge part in your ability to recruit and retain top talent. People generally leave jobs where their peers don’t respect them. Also, people are less likely to stay with a company that isn’t investing in its employees. Investing in your employee’s careers leads to better retention rates.
8. Stressful workloads – Workload has been proven multiple times to be a very strong contributor to low employee retention rates. If your employees are stressed out either physically or emotionally, you can expect low retention rates. Managing workload effectively is key to keeping stress levels low.
According to pain management specialist Jordan Sudberg, if you want a high retention level, focus on improving each of the areas above. Ensure you have a clear vision for your business and communicate regularly, so employees truly understand what success looks like. If you invest in creating a positive workplace culture, you’ll reap the rewards without spending much money.