Causes of High Turnover

April 13, 2006

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The causes of turnover are related to the same factors that contribute to absenteeism and low morale — if workers are not interested in their jobs, they will either stay away or leave.

But being unhappy in a job is not the only reason why people leave one company for another. If the skills that they possess are in demand, they may be lured away by higher pay, better benefits, or better job growth potential. While you can't control what's happening with other companies, how much they pay, or which benefits they offer, you can take steps to improve morale at your business and make those employees who are with you happy and productive. That's why it's important to know and recognize the difference between employees who leave because they are unhappy and those who leave for other reasons.

Following are some of the more common reasons for high turnover in businesses:

A bad match between the employee's skills and the job. Employees who are placed in jobs that are too difficult for them or whose skills are underutilized may become discouraged and quit. Inadequate information about skill requirements that are needed to fill a job may result in the hiring of either underskilled or overqualified workers. The requirements of a specific job should be carefully studied for the required skills, and workers should be tested for the requisite qualifications. Use job analyses and job descriptions to minimize the chances of this happening.
Substandard equipment, tools, or facilities. If working conditions are substandard or the workplace lacks important facilities such as proper lighting, furniture, restrooms and other health and safety provisions, employees will not be willing to put up with the inconvenience for long.
Lack of opportunity for advancement or growth. If the job is basically a dead-end proposition, this should be explained before hiring so as not to mislead the employee. The job should be described precisely, without raising false hopes for growth and advancement in the position.
Feelings of not being appreciated. Since employees generally want to do a good job, it follows that they also want to be appreciated and recognized for their work. Even the most seasoned employee needs to be told what he or she is doing right once in a while. Make sure your employees know that they are appreciated.
Inadequate or lackluster supervision and training. Employees need guidance and direction. New employees may need extra help in learning an unfamiliar job. Similarly, the absence of a training program may cause workers to fall behind in their level of performance and feel that their abilities are lacking.
Unequal or substandard wage structures. Inequity in pay structures or low pay are great causes of dissatisfaction and can drive some employees to quit. Again, a new worker may wonder why the person next to him is receiving a higher wage for what is perceived to be the same work. You should have a wage and job evaluation system in place not only so that you are sure to comply with equal pay for equal work requirements, but also to avoid this problem.