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August 15, 2012 by Greg

Employee Turnover Increasing | Navigator Newsletter #186

Employee Turnover on the Increase

Employee turnover is starting to increase. Employers need to take steps and prevent losing their loyal and skilled workers now.

George is an industrial engineer. He has been working for the same employer for the past four years. He used to love his job and enjoy going to work. Now he is tired, frustrated and feels cheated. Many of those who have stuck it out with their employers during this recession are deciding it is time to update their resume and start looking for a better job somewhere else.

Over the past few years, employees have grown increasingly unhappy with their jobs and their employers for many reasons. Some feel their employers have cut back too far. Others feel their organization has taken advantage of them. Some have not seen a pay raise, bonus or promotion in years. Their friends are starting to get pay raises, why not them?

With every economic downturn I have seen, the same circle of events repeat itself. The media is sounding more optimistic. Their friends start talking about getting better paying jobs and pay raises. Others leave for better and more interesting career opportunities.

If you are an employer, you need to evaluate your pay and benefits. Insure you minimize job dissatisfaction by providing a competitive work environment. You don’t want to be behind the power curve as the economy grows. Don’t get caught in the trap of thinking it is cheaper to find a replacement for less money.

Sure, employers can find plenty of people willing to take a job for less. But the cost of replacing a skilled employee is far more expensive than most realize.

In general, there are five important areas that lead to employee turnover and low job satisfaction.

• Poor match between the person and the job
• Poor fit with the organizational climate and culture
• Poor alignment between pay and performance
• Poor connections between the individual, their coworkers and the supervisor
• Poor opportunities for growth and advancement

Cost of Employee Turnover

The cost of attracting, recruiting, hiring, training and getting new people up to speed is tremendously more costly as well as more wasteful than most realize. Studies from the Gallup organization show employees who have an above average attitude toward their work will generate 38 percent higher customer satisfaction scores, 22 percent higher productivity and 27 percent higher profits for their companies.

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The Lutheran Social Services of Mid-America have a large organization, which spans three states. They have begun a Staff Speaks article in their monthly newsletter.

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If you find our information interesting, please send it to your friends. The Navigator newsletter is received by over 35,000 subscribers in 49 countries, in addition to other websites and magazines.

Copyright 2012 by Chart Your Course International–reproduction for publication is encouraged, with the following attribution: From “Chart Your Course International,” by Gregory P. Smith, copyright 2012. (770) 860-9464  (800) 821-2487

Filed Under: Employee Retention, Employee Turnover, The Navigator Newsletter

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