Employee turnover (leaving an organization) in small businesses is a painful event specifically when the business is down. It further intensifies it when the processes and outcomes of the business depend only on the key employees and their experience.
If you think you know why your employees leaving your business, then it is the right time to change your mindset. Because people do not tell you the facts every time when they leave. The exit interview data is often misinterpreted. The charts and the feedback from your HR team are often lacking enough information. ‘
I would recommend you to read this article with an open mind. I mean that you should have the willingness to accept your mistakes and take concrete steps to benefit your employees and your business.
Let us begin now.
Before understanding the methods to control employees turn over, one must understand why employees leaving the organization. Because
“A Problem Well Stated is a Problem Half-Solved.” – Charles Kettering
Why Employees Leaves the Organization?
You might have heard many reasons from the leaving employees, your respective colleagues, and HR. But you would be surprised to know there are some hidden reasons, that nobody would tell you upfront. If it is not corrected, then there is no way to stop your employees from going out which can result in a series threat to your business.
• Employees expecting the company and management to deliver on its promises, to be honest, and open in all communication, treating them fairly, and compensating them in a fair and timely manner.
• Employees want a sense of hope in the organization. They want to have the opportunity for advancement or career progress.
• Employees want to feel a sense of worth. Feeling confident that if they work hard, do their best, demonstrate commitment, and make meaningful contributions, they will be recognized and rewarded accordingly.
• They need to feel competent. Expecting that they will be matched to a job that aligns with their talents and the desire for a challenge.
If the organization does not support the above expectations, then it is difficult to control employee turnover in your small business and retain your employees, specifically the key talents. Having learned why employees leaving the organization, it is important to act on it.
Being Honest with your Employees
I know few companies who are displaying their value system, policies, vision, mission statement, etc. at the gates, entrances, shops, and offices, only to know that it exists for some certification purposes and for gaining recognition from their customers and visitors, but the people working in the organization would certainly know the facts. You can’t hide it for a long time.
The value system must be practiced every day by organizations. It can be clearly visible in the meetings conducted at all levels. It will tell you whether you are putting your employees first or your business on all occasions. Following are some of the examples to exhibit the value system of any organization,
– It authorizes stopping production to ensure the safety of their employees
– It involves employees at all levels while making key decisions and resolving issues.
– It shares profit and loss openly with the employees.
– It respects their employees the same way they treat their customers.
– It listens to the employee’s issues frequently
Establish a higher value system in your business and demonstrate the same in all activities you do. If you are mean it, you will be surprised to see the benefits.
“The future of any corporation is as good as the value system of the leaders and followers in the organization.”- N. R. Narayana Murthy
Your competitors may copy your product and processes, and they sometimes pull your key employees with them too. But they cannot copy your culture or value system. That makes you lead the business always. This is the first and foremost thing your employees want from you. Moreover, it costs nothing to you.
Respect your Employees’ Career
Employees are always given some responsibilities and expected to outperform.
“Each job requires a conscious choice of career path, and a different plan of development”- Auliq ice
In this context, one forgets to note that, the employees are not robots as it will start work once the program is loaded. We cannot expect an employee will work for his life with the same organization. Unless the employee’s career path aligns with the organization’s growth, there is no possibility of retaining them.
So, it is equally important to know about his or her career path, ambition, goals, passion, etc. What will happen if you keep an employee in marketing wherein his whole interest is towards operations?
The fact that many employees would not have enough courage to tell upfront that they want to switch their department, fearing a loss of a job, losing support from his or her manager on promotion and increment, etc.
It is the responsibility of the manager to know the career goal of employees who are working under them and providing opportunities, more responsibilities, challenging tasks on the field they are more interested in.
Because the career of your employees is as important as your organization’s career. Your support in his or her career development is important as it increases motivation and productivity. Attention to career development helps you attract top staff and retain valued employees.
Pay your Employees Objectively
This is an important subject because your employees need fair compensation. How to ensure you are paying them fairly?
Do some study among the peer groups within your industry. Ask the experts, Ensure that you are paying above than the average salary.
It doesn’t stop here. Once you know that your salary is above the average for your every position, you need to classify the employees in two categories that are highly skilled and low skilled.
Turn out from low skilled employees up to 15% is not a series alarm. But the turnout of key talents or highly skilled employees more than 5% is something you need to worry about. If it is due to the salary constraint then your compensation policy to be relooked into.
Ensure your key talents are being paid well. Experience doesn’t count on deciding the compensation scheme as it was the conventional idea. Make skills count. That is the only way to retain key people in the organization.
Don’t show your operational expense reduction skills in employees’ salary, rather involve them in providing innovative solutions to the problems. That will benefit you a lot.
Following the above principles will surely reduce employee turnover in small businesses.
Recommendations for Further readings:
The 7 hidden reasons employees leave, by Leigh Branham