If Your Team Has a High Turnover Rate, It’s Time to Re-Evaluate
No one wins when there's constant employee turnover. Luckily, there are a few things you can do to mitigate this pervasive problem
By | Lesley Pyle | www.entrepreneur.com
When you’re in the early stages of business, it can be tempting to try to save money by hiring as few employees as possible and paying them less than they deserve in order to keep your overheads low. However, there are several reasons why taking this approach isn’t ideal, and one of the biggest factors is the employee turnover rate.
Perhaps you’re an experienced business owner and you’ve been running your company for quite a few years, but you still find employees leaving constantly. Either way, if your team has a high turnover rate, it’s time to re-evaluate the way you manage employees and pay them accordingly.
Causes of high employee turnover
There are many reasons why employees may choose to leave their current position. Maybe they feel like they’re not being paid enough, or they don’t have enough opportunities for growth. Maybe the company culture is toxic, or they’re just not happy with their current situation.
I recently spoke with someone who found themselves working at a company that was constantly losing people — and bringing in new people. They told me that they noticed the CEO tended to give people more projects than they could manage. Eager to please during their first few days at a new job, people would say yes to anything the CEO asked, and the CEO would often ask for projects to be completed that were not included in people’s job descriptions. These new employees would do their best, hoping to impress their new boss, but what they did not realize is that they were setting a precedent where the CEO constantly asked for projects they were not paid for on top of their normal day-to-day duties.
