The Man In The Mirror

Top 5 Reasons You Have Employee Turnover

What makes a good employee quit? There could be hundreds of reasons why this happens. In most cases there usually isn’t just one solid reason an employee leaves his or her job. Usually it’s a combination of things that weigh on their minds over time and impact their decision to quit. However, there is one common denominator: YOU!

People usually don’t quit jobs — they quit bosses. If you are experiencing high turnover then it could be time you start to dig into why this is happening. Don’t just shrug off turnover as a cost of doing business… It costs you way more to recruit, train and lose productivity until a new hire is up to speed than it does to retain an existing employee.

Here are the top 5 most common reasons good employees quit.

1) Bad Management

Let’s start here because I think this is a big one. A Gallup poll of more than 1 million employed U.S. workers concluded that the No. 1 reason people quit their jobs is a bad boss or immediate supervisor. A full 75% of workers who voluntarily left their jobs did so because of their bosses, not the position itself. Gallup’s finding is most employees don’t leave companies, they leave managers.

There is a lot of truth to that finding if you think about it. There are many managers who possess a superiority complex… their management “style” is to attempt to motivate employees with fear and ultimatums. Great leaders don’t talk down to employees. Respect is a must!

Some managers are taskmasters and martinets, continuously drilling their employees. Bad manager! Micromanaging suffocates, demoralizes and kills creativity. A manager’s job is to motivate and give guidance. When employees don’t feel appreciated, morale and engagement disappear. In the end, a bad manager can take a good staff and destroy it, forcing good employees to quit and the rest to lost motivation.

Don’t be a bad manager!

2) Lack Of Appreciation And Recognition

I wrote about this topic recently in the September 2019 issue of Dealernews, so we will keep this brief and suggest rereading this:

To reiterate, recognize employees or lose them! This has to be one of the easiest ways to keep employees happy… and one of the hardest things for some bosses to do! Simply put, employee appreciation and recognition are a great way to improve employee retention.

Do it, or lose it!

3) Over Stressed And Over Worked

Sometimes the higher performing employees are burdened with picking up the slack for others and gain an unreasonable workload. I get it, times are tough and everyone is having to do more, with less. But it is an easy trap to fall into and overwork good employees as they are obviously good at what they do.

Be careful and be aware that overworking an employee can be counterproductive. It can easily lead to shoddy work. If your employees need help and are doing the job of 2 or maybe 3 others, it is your responsibility to recognize that. Offer them some help or hire another person before you drive them away completely.

Do the right thing!

4) A Bigger Paycheck

It’s not surprising to have this reason on the list, a bigger paycheck is usually one of the top reasons employees jump ship. While money is important, it isn’t the only factor. I believe it’s a combination of things — including the other four listed in this article.

For example, the more you overwork your employees the more resentful they will become and they will start feeling unappreciated and their expectations for a higher salary will also come into effect. When you ask an employee why they left, many will mention more pay, but that’s not really how the reason was created to begin with. It actually all started because that employee was stressed and overworked.

Pay a fair wage, but realize there is more to employee retention than money.

5) Personal Life

An employee may be making a move to another city or state, but the big question is did they decide to make a move because of a job offer with higher pay and/or benefits? Maybe someone just wanted to go back to their hometown to be closer to family and friends.

This leads me to remind you to NEVER overlook candidates from other states when hiring. Until you know their motivations for moving, you may be missing.

Money is not the only motivation!

Bottom Line

Employees need to feel as if they are an integral part of your organization. Value their ideas and input, otherwise they may

feel alienated and not part of the team. I’m speaking to owners and GMs here, but I encourage you to include employees and managers in the decision-making process whenever possible. If they feel their voice and opinion matters, then they feel part of the team and business.

Boost morale and let good employees know that you trust them enough to work on their own. If you have a bad manager that is churning through good employees, it might be time to look for a new manager. If you are the manager… well, that is whole ’nother can of worms!

Last, but not least, make sure you look in the mirror as company culture and vibe comes from the top down. Reward good employees. Recognize and praise them. Be conscious of overworking them, don’t allow micromanagement to mess things up!

Talk openly with employees that are leaving by conducting exit interviews to find the root cause. Good employees are getting harder to find and extremely costly to hire and train, so unless you are replacing a cashier, don’t just assume there is another good employee waiting to come work for you. This is a small industry and word gets out about how employees are treated.

…And remember the man in the mirror is the common denominator when it comes to retaining good employees!


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