5 Predictors of Turnover

16 Nov

Staff retention is important.  For each percentage point increase in staff turnover it will cost the company an additional 1.4 % in direct labour costs.  This does not take into account all the indirect costs such as lower productivity, training and administrative support.

Minimising turnover will add to the company’s bottom line. 

In a survey of more than 97,000 respondents Quantum Workplace report outlines 5 key predictors of turnover. Here are 5 predictors of higher turnover that might help you look towards ways to reduce this and achieve higher retention rates.

1) Job Dissatisfaction: Employees are at a higher risk of turnover who feel a general sense of unhappiness, a lack interesting or challenging work assignments, and a lack opportunity to use their strengths in their role.

2) Unmet Needs: When employees feel like their opinions don’t count, or that the organisation shows too little interest in supporting their development, health, well-being, or work-life balance, there is a greater likelihood of turnover.

3) Poor Team Dynamics: If employees don’t like their immediate manager, do not believe their team collaborates effectively, or if they feel that co-workers aren’t committed to quality work, they are more likely to leave.

4) Misalignment: This includes a disconnect between the employees’ career goals and their job, as well as being unsure about whether there is a place for them with the company in the future.

5) Intention to Stay: Although it may sound obvious, the single biggest predictor of turnover is the indication that the employee does not want to continue (this kind of feedback is not always explicitly sought by management).

Understanding employees’ needs and wants is an important part of achieving a high performing workplace.  Creating the right environment for employees to perform at their best should be a goal.  Largely this is not the case for many organisations.

To help limit turnover here is an interesting Infographic “What employees want” 10 key areas of focus to engage employees.

Many of the areas are relationship based and have a high potential benefit value for little more than a change in approach.

It is my strong belief that most people want to do well and be considered and be seen to be of value.  Let’s make life easier, less stressful and more rewarding by embracing more of these concepts.