Causes of high employee turnover rates
The first step in dealing with employee turnover is to know and understand the reasons that lead to it.

A high employee turnover rate is a big expense for the employer. It consumes valuable time and money, and can result in a loss of employee morale. A company’s reputation could also be tarnished because people assume that an organization that has a high turnover rate is not a desirable place to work. In this way, the reputation deteriorates internally and externally because the best “advertisement” of employer branding is a satisfied employee who respects the company in which he works.

On the other hand, a certain rate of turnover is inevitable but also healthy. For example, retirement, relocation or leaving the organization cannot be avoided (eg dismissal due to a particularly serious breach of work obligations). But, it’s important to monitor employee turnover rates and understand why employees leave if you want to avoid negative consequences.

The first step in dealing with turnover is to know and understand the reasons that lead to turnover. The causes of fluctuation can be roughly divided into general and specific.

Enmployee leaving

In the category of general causes, interpersonal relations, the climate and culture in the organization are most often mentioned. Interpersonal relationships come to the fore already in the process of introducing new employees. For example, if interpersonal relationships are good, the new employee will very quickly identify with the values ​​of the organization and will put his will and knowledge at the service of the organization. If they are bad, from day one, the new employee will find himself in a whirlwind of multiple criteria and different expectations and values. Therefore, they will spend most of their time and energy thinking about which current to connect to, when to listen and how to behave, while productivity will fall or be completely absent.

The specific causes of employee turnover are very different. We have singled out the 5 most common reasons for the high turnover rate that we find in practice:

1. Lack of space for professional growth, career development and advancement

Opportunity for growth and development is very important for retaining good employees. If an employee feels trapped and doesn’t see a perspective in the organization, they are likely to look for their place elsewhere to get a chance to improve their status and income.

2. Overwork

It may seem natural that in a time of economic pressure and crisis, you are asking your employees to take on additional responsibilities. You may need to lay off people and ask the remaining employees to work harder, faster and longer, on weekdays and weekends – but that’s just a good plan in the short term. Asking employees to choose between their business and private lives will never end well. Instead, it will contribute to a higher turnover rate, as employees need to feel a balance between private and business in order to be maximally productive.

3. Lack of mutual feedback

By avoiding feedback about upcoming or completed work, you are forcing your employees not to feel included in the organizational team. Feedback is the first step in ensuring the success of your employees, so avoiding this process can be detrimental to their success. If an employee is struggling with work, honest feedback can help you manage workloads and diversions. Ignoring opportunities for feedback or providing useless feedback will leave the employee fidgeting, getting messy, trying, and eventually giving up.

Unsatisfied employee

4. Insufficient opportunity for decision making

If employees in managerial positions micro-manage their subordinates, they are actually indirectly telling them that it is not possible to work properly and well without managers. What’s more, micromanagement kills every opportunity for innovation, and that’s not what you want. Suffocated, over-managed employees are likely to become frustrated with a lack of freedom, contributing to a high turnover rate. Instead, trust your employees to do well – allow them a little freedom and you will surely see their enthusiasm grow.

5. Poor employee selection

It is difficult to find the perfect employee, but forcing the employment of an employee who obviously does not fit into the company culture and values ​​will never end well. As much as you are desperate to fill a job, a bad choice is bad for a new employee, for your company and all the employees in it.

In addition to the most common specific causes of high turnover rates: non-recognition of contributions | non-rewarding or non-stimulation of the best employees | poor analytical assessment of job value | inflexible and/or unfavorable working conditions |and attractive alternatives for other employers. In the following blog, we bring you some of the strategies for reducing employee turnover rates.

Other posts
Measuring employee engagement is only the first step. What you do after the measurement is equally important.
Sandra Jovović, Regional Director for the Rijeka region at Generali osiguranje, knows how to motivate different personalities within the team, remaining consistent with the company's goals and values.