Correct These Mistakes That Can Lead to Turnover

Five years ago Deloitte surveyed nearly 7,700 Millennials, all of whom were employed full-time, had college or university degrees and worked for large employers. Globally, 66 percent of the Millennials expected to change jobs by 2020.  As millennial turnover has been at about 20% a year, the stats in this research are probably low.  With the vibrant current economy and more jobs available than employees to fill them, this issue will continue and probably get worse.

Retention is a common issue to HR professionals regardless of company size, and losing good employees is never good for your company.  You may not be able to retain every employee but there are some mistakes that are made that you might be able to avoid which can lower your turnover.

Mistake 1: Do you ask them to work as much as you do but don’t pay them for doing it?

It’s only natural for you and higher management to be so committed to the company or the project you’re pursuing that you expect every employee to automatically feel the same way. Growth and profit planning often dictate that you take on extra projects that make your team do overtime every week.  But it’s not fair to assume they will put in extra work to attain goals they are not a part of. When work is piled on without sharing in the outcomes, something will give.  While income may not be the most important reason a person leaves, it ranks within the top three.

If an overtime work week is the norm, a change in how you compensate for performance may make a difference. If you don’t want to upset your income planning there are other forms of compensation that can be effective.  Non cash awards properly implemented can provide a great boost to morale and enthusiasm.  Not only can that help retain your best, it can improve quality and productivity.

A current Amex study shows that half of millennials feel pressured to be available for work at all times.  The more overtime you ask of your employees, the more stressed they become, and the more likely they are to look for another job.

Mistake 2: Are you giving them the chance to learn new skills?

Research has shown that career development is a top factor in retaining millennials. 60% say that the opportunity to learn and grow is extremely important to them.  This is higher by a third when compared to how Gen Xers or baby boomers.

Give your employees new opportunities to learn and do meaningful work and then allow them a “seat at the table” in planning company goals and milestones.  This will give them a sense of purpose and meaning that can lead to improved performance and lower turnover.  And as so many millennials want to contribute to their community and society in general, focus them on how their work can improve their surroundings for the better over time. 

Mistake 3: Do you treat them well? 

This is a question that is often overlooked by management.  Frankly it is just assumed that as a matter of course, purpose, or objective within the everyday workweek that you treat employees well.  Would it surprise you to know that according to PayScale research, a third of employees who left their job had problems with their boss?

Micromanaging is one of the worst things a manager can do.  Millennials especially want and need autonomy…which is just the opposite of what they get with the micromanager.  Research also indicates that 59% of employees have worked for a micromanager.  Of those, 68% said it decreased their moral and 55% said it lowered productivity. 

Most all HR professionals acknowledge that employee recognition is important for a number of reasons.  One reason that is often overlooked is that to provide meaningful recognition managers need to be good coaches and mentors, something difficult for a micromanager to do.  In fact micromanagers tend not to realize that in themselves at all.  

So, while turnover may be inevitable, you can take these simple steps above to reduce these mistakes and to avoid some costly losses of your best people.

For more information on Ultimate Choice Inc.’s products or services please contact us at lborlo@ultimatechoice.com.