The recent increase in layoffs, uncertain times ahead, and the Great Resignation are all negatively impacting teams and the people who stay at their jobs.
All of these combined factors are causing employees added stress.
At the same time, managers and leaders are struggling to find talent to fill vacancies at their companies. This has led to employee attrition becoming an increasing concern for employers worldwide.
Employee attrition measures the number of employees who leave your organization and aren’t immediately replaced. With many businesses experiencing higher attrition rates than ever, leadership teams are looking for ways to manage attrition and reduce its negative impact on their workforce.
To help managers and leaders more effectively manage employee attrition, this guide covers some of the leading causes of attrition and provides three tips to overcome its unseen impacts.
What are the Top Reasons for Employee Attrition?
We’ve already mentioned the Great Resignation, an increase in layoffs, and an uncertain work environment as three causes of attrition, but there are others to keep in mind as well. Having high attrition rates is often avoidable by taking action to address issues before they become more serious.
Some of the main drivers of attrition include:
- Poor compensation and benefits
- Little to no opportunities for growth and career advancement
- Toxic workplace culture
- Lack of support from management and leadership
- Burnout from being overworked
- General job dissatisfaction
Not all types of attrition are intrinsically bad, however.
For example, employees who reach retirement age likely won’t significantly impact your business as you’ll be able to prepare for their turnover far in advance. What should be of concern, on the other hand, is regrettable attrition (i.e., when highly valuable employees leave, often unexpectedly).
Now that we’ve covered some of the leading causes of attrition, let’s look at three ways you can overcome the impacts of turnovers on your team.
1: Check In Regularly with Your Team
High attrition and turnover rates can significantly dampen your team’s morale. If left unchecked, morale will likely only decrease further, leading to more turnover. That’s why it’s essential to regularly check in with your team so you can better understand how they’re feeling and identify areas where additional support and improvements are needed.
For best results, check in with your team individually and in groups.
Try holding both one-on-one and team meetings with employees once a week or at least once every other week. Doing so allows you to better understand your employees' challenges in their daily work and address them before they grow into more significant problems.
During these check-ins, strive to lead with empathy and listen to the problems your team is facing.
Ask probing questions so you can identify which areas need improvement. At the same time, recognize that communication is a two-way street by making yourself available to your team to answer any questions and give them the support they need. Part of supporting your employees is also advocating for them to others in leadership roles so the organization as a whole has a stronger emphasis on employee well-being and satisfaction.
Giving your employees feedback, recognition, and encouragement are crucial to staying engaged with your team.
Employees who receive daily feedback are more engaged and committed to your business’s success. Note that giving feedback isn’t the same as conducting a rigorous performance review. Feedback can be something as simple as thanking employees for their hard work or celebrating the successful completion of a project.
2: Gather Feedback and Listen
Providing quality feedback to your team is vital, but so is gathering feedback and listening to what employees have to say.
Three ways you can gather valuable feedback from employees are by:
- analyzing the effectiveness of your onboarding processes,
- sending out employee satisfaction surveys, and
- conducting exit interviews
Making a good first impression is always important, and the impression you make with your onboarding process is no exception.
Employees who don’t have a positive experience during their first days and weeks at a new job are much less likely to stay at a company for an extended period of time. If you find that a lot of your attrition comes from newer employees, it might be necessary to make changes to your onboarding process.
Consider sitting down with new employees after they’ve completed the onboarding process to gain more insight into its effectiveness. Discuss how well onboarding prepared them to do their jobs and ask about areas that could be improved. You can also discuss their first impressions of the company’s culture, how welcomed and supported they’ve felt by their team members, and anything else that gives you a better understanding of your onboarding process’s effectiveness.
Anonymous Employee Satisfaction Surveys
Anonymous employee satisfaction surveys are another great way to get valuable feedback from your team members.
Surveys should ask questions about employees’ level of satisfaction with all aspects of their job, including pay and benefits, work/life balance, opportunities for growth and advancement, management’s effectiveness, and more. Make survey responses anonymous so employees are more encouraged to respond honestly. Consider sending out anonymous satisfaction surveys monthly or bi-monthly and keep track of how responses change over time.
Exit interviews are one of the best opportunities to learn about why employees leave your company.
For example, if most of your employees cite finding higher-paying jobs as a reason for leaving, then your salary offerings may not be competitive with other workplaces. Or you may discover issues with your company culture. Whatever the reasons, you can use that information to take the necessary actions to make improvements.
3: Take Action to Improve Employee Experience
If you run a business or manage a team of employees, you know that many factors are out of your control.
For instance, the COVID-19 pandemic impacted businesses of all types in unprecedented ways and forced many companies to pivot in how they operate. Nevertheless, most things that affect attrition are within your control and can be mediated by taking action and keeping a finger on the pulse of your team's morale.
What specific actions you take will vary depending on what you discover are the leading causes of attrition in your workplace. Three of the most effective actions include:
- Providing career advancement and leadership development opportunities. If employees don’t feel like they have the opportunities to advance their careers, they’re unlikely to stay with a company long-term. Offering your team professional development opportunities to enhance their skill sets shows employees that you’re invested in their success. Also, when management and leadership roles open up, promote from within rather than searching for external candidates.
- Offering competitive wages and benefits. This may seem obvious, but employees want to work with great people, be compensated fairly, and know they're seen, heard, and valued in the organization. Don't be surprised if current or potential employees pass on your company in favor of one of your competitions who offers great benefits and a great team experience
- Nurturing a positive company culture. Whether your employees work remotely or in an office, they want a work environment where they feel supported by their team. When attrition is high, employees can lack a sense of belonging and connection. Lead the way by creating shared experiences for your people to connect on a human level.
How to Manage Attrition with PepTalk
PepTalk is here to support your organization’s well-being by engaging your team with connected experiences.
Our platform helps companies manage attrition by emphasizing employee engagement and helping teams stay connected and learn new skills. By using the PepTalk platform, you can increase employee retention, boost productivity and reduce absenteeism, all while raising your company’s profitability
To see firsthand how PepTalk can build great team experiences at your organization, book a free demo today!