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Top 5 Reasons for Employee Turnover and How to Fix Them

Top 5 Reasons for Employee Turnover and How to Fix Them

As a small business owner, your employees are one of the most important assets to keeping day-to-day operations running smoothly and propelling your company to the next level. That’s why it’s so devastating when those workers who showed up so bright-eyed on the first day announce that they are suddently quitting. In fact, some estimates put the cost of replacing an employee at one-third of the new hire’s salary.

If your company is seeing people leave just as quickly as they come, it might be time to consider the possibility that these common reasons for high turnover are driving them off.

1. Poor Management

Start paying extra attention to how employees and managers interact. Are their conversations cooperative and cordial or is an adversarial undertone always present? If your managers haven’t been taught how to motivate, resolve conflicts, and build positive yet productive relationships with subordinates it might be time to invest in them with some training so that you don’t lose any more talent to bad manager-employee dynamics.

2. Working Conditions

The kind of office you’re in influences the atmosphere of the workplace you provide. It might seem like this should go without saying, but it’s easy to overlook rooms with no windows, equipment that doesn’t work, or even hazardous conditions that you could be liable for. Take stock of the conditions you’re providing employees and see if there’s anything you can do to improve the space, whether it’s adding pleasant touches like potted plants, repairing the copier, or even moving to a new space altogether in the name of safety.

3. Pay and Benefits

While compensation isn’t always as important to employees as employers might think, it does matter to an extent. The ideal solution is provide pay and benefits that are on par with what your competitors are paying for similar work. But if your small business truly can’t afford that, you can try adding extra perks like flex time, comp time, and paid time off to even up the playing field.

4. Advancement

Plainly put, if your workers feel like there’s nowhere else to go in your company they’ll find somewhere else to go--leaving you with a gap in your team. Career progressions can help employees feel like there’s room for advancement, but again, creativity gives you other options. Offer to train them in different skill sets, or mentor them if they’re young in their careers. Large companies with impressive titles won’t be able to offer these incentives as well as you can.

5. Lack of Recognition

Anyone who’s interacted with people enough knows that they love recognition and praise. So much so that lack of recognition accounts for the reason 25 percent of people leave their jobs. Luckily, this is a problem that you don’t have to throw money at to solve, but instead requires a mindfulness to know when employees go above and beyond and the follow through to communicate your praise.


Some employee turnover is normal. But if your hired hands are regularly jumping ship after a short tenure for greener pastures, this list can help you narrow down the cause and fix it before the constant coming and going of workers starts impacting your business operations and ultimately, your dream of owning your own company.

Posted: 2/6/2015 7:04:42 PM by | with 0 comments