Sometimes top talent will leave a company for a different position or greater incentives. However, if your business has a high employee turnover rate, maybe the issue isn't just competing firms. Unfortunately, many bosses have some sneaky habits that drive top talent away.
Having a high turnover rate isn't just time a time consuming issue, it's also extremely costly. According to Gallup, "it could cost a 100-person firm between $438,000 and $4 million a year to replace employees."
Learning how to increase employee satisfaction and minimize turnover will not only make your team happier, but it will also save you money.
Here are eight harmful habits bosses exhibit that make top talent look for the door and what they can change to retain their best employees:
Occasionally, life gets in the way of work. It's inevitable. When it comes to scheduling, being ungracious and inflexible is a bad habit that can make even the most loyal employees quit. In fact, having a healthy work-life balance is so important to people that 14% of employees said that this issue is a deal breaker, according to a survey by BambooHR.
Bosses who make people feel bad about asking for time off or guilt employees into working too much overtime risk burning out their team and causing a high employee turnover rate.
One solution to this problem is to make sure you are properly staffed. Doing so will ensure that you aren't putting too much strain on your workforce and that you can compensate when employees have to call in sick or ask for time off.
2. Fostering hierarchy instead of unity
From entry level employees to high level executives, everyone plays an important role within a company. But a detrimental habit some administrators fall into is creating a sense of division between the branches of their company instead of collaboration. Encouraging collaboration between different areas of your business will foster creativity and innovation.
If you're a boss, checking in with every department and encouraging them to share their ideas for improvement with you or other branches will promote trust in management, a sense of pride in one's position, and overall greater job satisfaction.
3. Failing to recognize good work
While promotions and raises are what employees strive for the most, don't underestimate the simple yet potent value of praise, when it comes to decreasing turnover. As humans, we crave feedback and want our hard work to mean something. BambooHR's survey found that "82 percent of employees don't think they're recognized for their work as often as they deserve." If you manage others, failing to show your appreciation can leave members of your team feeling lousy and unimportant.
Luckily, there is an easy fix. If you see hard work, let that person know. Even telling an employee, "Good work today!" on your way out the door, can make them feel valued for all the hard work they do.
4. Skimping on development
If you want to hang on to your top talent, don't make the mistake of not providing them with opportunities to further develop and hone their abilities. In one study, Gallup analyzed high employee turnover, and the research team discovered that "One of the best predictors of turnover is whether an employee has had opportunities at work to learn and grow."
It's tempting to save money and cut back on training programs, but providing employees with access to continued learning, seminars, and conferences will keep your team motivated, sharp, and your business innovative.
5. Neglecting team projects
It's frustrating when employees devote their time to completing a project, but their boss doesn't bother keeping current on their team's work. Instead of being a much needed resource, their employer falls out of the loop and harms productivity in the process. BambooHR found "82 percent of employees are irritated when their managers don't know as much about the industry or your team's projects as they do."
Seeing a project through to it's end shows your team that you care about their success and what their work means to your company. You don't have to micromanage to stay on top of your team's developments, though. You can stay up to date with helpful time-saving, project management apps like Asana, which allow you to delegate and communicate with your team quickly and effectively.
6. Being a bad communicator
Another toxic habit that cause people to quit is not communicating effectively. If you brush off questions and emails or have wishy washy plans that are constantly changing, that's not only annoying to employees, it also halts productivity and drive.
According to a study performed by Watson Wyatt, companies who put emphasis on good communication are "50% more likely to report turnover levels below the industry average compared with only 33% for the least effective communicators."
The lesson here: poor communication wastes your employees' time and energy. Having a clear vision and follow-through makes your best workers feel secure and focused in their jobs.
7. Working less than everyone else
Being the boss affords you some advantages and privileges. However, if your team is up to their necks in work, while you're constantly on vacation, that won't inspire much confidence in your leadership abilities. In fact, doing this can cause people to feel resentment and frustration towards you and the job itself. Instead, try to lead by example. If people see you working hard, communicating properly, and looking out for the team, they are more likely to do it themselves.
8. Participating in gossip
It might break up the monotony or feel cathartic to vent or speculate at work, but bosses who feed into office gossip and play favorites create a hostile environment and end up focusing on all the wrong things.
HR expert, Suzanne Lucas, says "the reality is you need to be in a position to not only hire, but fire, discipline, promote, mentor and pass people over for promotion. When you get caught up in the drama and concerned about the little things, you lose perspective on the things that matter, like the business." As tempting as it might be to turn the office into a soap opera, above all, remain impartial.
Do you know any habits that drive employees away (or good habits to follow instead?) -- give me a shout-out on Twitter!