High turnover rates are never a good sign for a company. It can lead to a loss of money because employees are constantly leaving and new ones must be trained, leading to a waste of time training new hires that are not as efficient at the job, while you could have been focusing on improving the skills of people who were already doing fairly well and understood how the company works. It could be a reflection on the way you are running the business, what type of managers you have, or the type of employees you are hiring. Regardless of the reason, you can take steps to lower the turnover rate in the future.
The company is not run well
A big reason a business might have high turnover is if it is not being run very well. It can be challenging to run a company, even if you have previous experience as an entrepreneur. However, if employees feel severely overworked and like there’s no room for advancement in the company, you’ll see high rates of turnover instead of keeping talented employees around. Evaluate how your company is being run and what kind of reviews employees leave online. It can also be beneficial to take the time to conduct an anonymous employee survey to get a realistic picture of how workers feel.
Management is not good
One of the most common reasons people leave their company is because of a bad manager. The manager may not have enough experience to effectively manage people or their personality may not work well with that of the employee. No matter what, you need to ensure you hire a good management team no matter the size of your business. If you want to keep great employees, learn how to promote and train fantastic managers.
You are not hiring the right employees
A mistake plenty of businesses make is that they do not hire the best employees for the job. In order to lower turnover and ensure you’re hiring the right employees, you need to streamline your hiring process. Think about how you post job descriptions and conduct interviews. Think about the type of person you want to employ at the business. Follow up with references and research the candidate. Starting off on the best foot by hiring the right employees means you set yourself up for success.
The culture is not a fit
If employees seem to be leaving a lot and you do not think it’s any of the above reasons (or have already tried to fix them), it could be that the culture is not a great fit for a lot of people. Examine your company culture and think about how you could improve it to make it more appealing to employees.