Performance Partners

HR Advice Online: Employee turnover – Why your employees leave

You will have heard the age old saying – ‘Your employees are your company’s greatest asset’. That is because the success of an organisation is directly dependent on the productivity of its employees. 

While there are several reasons why an employee may seek to pursue alternative employment, when an employee elects to depart your business voluntarily it can be a symptom of bigger issues. Employee turnover or a reduction in an employee’s productivity can often indicate that there are opportunities for improving manager skills and organisational culture. 

Key factors which can result in reduced employee productivity or can influence an employee’s decision to leave the organisation  include:-

• Lack of adequate supervision, consistency and communication

Managers who micromanage and insist that their team run every small task by them is not effective or a good use of time. Such management styles can impact adversely on employee confidence and overall morale.  Providing autonomy to employees to manage their projects and tasks where practicable will help establish an environment of productivity and trust.

When employees are pulled in many different directions with ever changing expectations or inconsistent processes it can become challenging for them to consistently obtain the expected and required outcomes. 

Workplace environments that are inconsistent can result in increased confusion and frustration for employees. Ensure that operational processes remain consistent where possible.

Communication is critical in almost every business process within an organisation.  If information is not provided in an appropriate manner to the intended recipients, it is likely that productivity will fail.   

• Understanding the business goals or “Bigger Picture”

Clear communication of business goals and the “bigger picture” can provide assurance to the employees and improve employee motivation and productivity.

• Unprofessional management of concerns

Discussions regarding errors made or performance concerns should be undertaken privately and in both a professional and respectful manner. Employees should be given an opportunity to discuss and provide their response and to be mentored by their manager. 

• Not listening 

This is one of the biggest mistakes a manager can make .  Listening is not limited to just listening to an employee’s ideas and suggestions, it is about listening when they provide constructive feedback about the workplace and individual management styles. Look to take on board their feedback as a way to make business improvements.

• Flexibility

Employees should be confident and comfortable to approach their manager at all times to discuss any matter that may be impacting their ability to perform their role. Being inflexible with time or lacking a willingness to openly listen can create a barrier between an employee and their manager and may create a decrease in trust.

• Mental wellness

No matter how experienced, skilled or qualified an employee is, they will not give their most productive performance if their mentally wellness is impacted.  It is imperative that managers check in with their employees regularly to understand if there are any impacts to their mental wellness, such as overwork or working excessive hours, stress or personal factors that they may not wish to discuss.  Ignoring ‘flags’ that indicate an employee may be unwell can have an adverse effect on their productivity and potentially their retention.

• Appreciation

Providing gifts, a flashy coffee machine, free lunches, or pay rises will go only some way to showing an employee they are valued and appreciated. Rewards and gifts in isolation will not ensure that your employees remain productive or engaged.  In many instances, the provision of more simple but regular recognition for the effort and work being applied will be more greatly appreciated.

It’s important that as an employer and manager, if you want your organisation to be successful, you ensure that you show your employees that they are valued. Give them great reasons to stay!  If you would like any further information regarding staff retention, or should you require support regarding any HR matter, please contact the team at HR Advice Online at advice@hradviceonline.com.au or on 1300 720 004.

Information in HR Advice Online guides and blog posts is meant purely for educational discussion of human resources issues. It contains only general information about human resources matters and due to factors, such as government legislation changes, may not be up to date at the time of reading. It is not legal advice and should not be treated as such.