Excessive turnover is like a deadly disease to organizations. It is costly, disruptive, and devastating to employee morale. If your company has a serious turnover problem, you may not recognize it because the problem has been going on for so long that it appears normal. Or, you may not know the reasons behind the turnover and ways to correct it. According to recent data from the U.S. Bureau of Labor Statistics, turnover can cost a company 33 percent of an employee’s total compensation. Beyond the negative financial impact, organizations are hampered by low morale and organizational instability when they see people fleeing out the front door on a regular basis.
Some turnover is good. Some turnover is inevitable. Some turnover is necessary. However, turnover caused by poor leadership, bad management, bad systems and structures, or negative work environments is damaging to the organization both short and long term. According to Pat Lencioni in his great book titled “The Three Signs of a Miserable Job”, most job misery that leads to turnover is caused by three things: anonymity, irrelevance, and immeasurement. Employees feel invisible to a company when management does not take a genuine interest in them. Employees feel irrelevant when what they do does not matter to anyone. Employees also feel like they don’t matter because managers do not give the employee a clear means of assessing his or her progress or success on the job.
Keywords: Business consulting, employee management, job misery, job satisfaction, Austin business coaching, Turnover in companies, employee relations