Friday, June 20, 2008

Why People Leave?

I came across two articles about major causes of turnover. While there is good turnover, bad turnover (people that you want to keep) can be prevented mostly due to leadership and management. In my opinion, increased bad turnover is the biggest reason an organization or unit will not be as successful as planned. Yes, maybe that is simple, but many times leadership and management do not understand this and think the "staff" is replaceable. However, the knowledge, experience, relationships that those leaving staff have is a huge impact. People can walk out the door, assets like cars, planes, etc. can not just leave. Consequently, leaders need to focus on people, otherwise, you might be standing alone! There is a disconnect between management and employees are why staff leave . . . management constantly cites pay, whereas, employees cite management issues, interesting.

Article One

Leigh Branham, formerly of Saratoga Institute provides “Seven Hidden Reasons Why People Leave”.

According to Branham, here are the seven reasons why people leave organizations most often:

1. The Reality of the Job Isn’t What Was Expected - In short, the job was oversold based on the reality. Employees start with great enthusiasm but the work environment and the employer failed to deliver.

2. Hiring Took Place in a Hurry - Failing to hire for fit in the organization rather just needing to fill a position. (Note: In a recent local HR forum, HR managers stated that in over 60% of hiring situations, they were pressured by managers simply to fill a position and were forced to “skip steps” in the appropriate hiring process).

3. Lack of Coaching & Feedback – Departing employees reported little to no feedback. Employees want feedback both positive and instructive.

4. Career Advancement & Growth – In this tight labor market, most employees are acutely interested in what the company is going to do for them. Only 44% of companies are giving the correct expectation for advancement (according to Branham). He states that approximately 75% of employees in organizations are looking for a job, 30% actively and 45% passively.

5. Lack of Recognition & Feeling Devalued – Employees feel like efforts go unnoticed. Was a good job done? Did anybody notice and did anybody care? Many people state they are frustrated because pay is not linked to performance.

6. Lack of Work/Life Balance – Employees feel the culture is a one-way street. Take, take, take but no give when it comes to work / life balance. There is also inadequate attention to employing well-rounded individuals.

7. Loss of Trust and Confidence in Senior Leaders – Once an issue with leadership creates mistrust, it is difficult to win back.

HR experts consistently estimate that the cost of turnover for a two-year, performing employee, can be between 1.5 to 3 times annual salary.


Article Two

Employee Turnover: Seven Reasons Why People Quit Their Jobs
By Marcia Zidle



1. Management demands that one person do the jobs of two or more people, resulting in longer days and weekend work. This turns into a morale killer not only for the person but for the team.

2. Management doesn't allow the rank and file to make decisions about their work. Therefore, employees see their job as only a job rather than developing enthusiasm and pride of ownership.

3. Management constantly reorganizes, shuffles people around and changes direction constantly. Therefore, employees don’t know what’s going on, what the priorities are and what they should be doing.

4. Management doesn't take the time to clarify their decisions. For example, it rejects work after it was completed, damaging the morale and esteem of those who prepared it.

5. Management alienates staff by promoting someone who lacks training and /or the necessary experience to supervise. This leads to employees to feel management shows favoritism and so why do a good job?

6. Management promotes departments to compete against each other while at the same time preaching teamwork and cooperation. Therefore, employees become cynical and only put effort in what they see management wants not what they say.

7. Management throws a temper tantrum, points fingers and assigns blame when things go wrong. Therefore, employees don’t want to be at the other end of the barrage of negativity.



Can you all see any of these at your organization? These can be prevented, it is in You!

1 comment:

Anonymous said...

The first article sounds like a lot of the complaints managers have with working with Gen Y's. But perhaps Gen Y's are just acting on what we've all been feeling all along.