MONEY

Top 6 reasons employees quit

Ed Rappuhn
For The Tennessean
An exit interview is a good first step to help you understand why employees leave.

My client asks, “I keep losing employees … why?”

I answer, “Have you asked them?”

An exit interview is a good first step to help you understand why employees leave. Of course, if the problem is you, they might lie. Employees that are smart don’t want to burn bridges.

My client’s question led me to do some research. Although the order might differ, these are among the top six reasons employees quit:

  • The employee isn’t qualified or trained properly for the job.
  • There’s a poor fit between the employee and the company culture.
  • The supervisor is a poor manager.
  • The employee doesn’t feel challenged or valued.
  • The staff doesn’t understand company goals and how they contribute.
  • They can make more money elsewhere.

Interestingly, the money issue is almost always last on the list. This is especially true in times of high unemployment where other opportunities are scarce, but it’s even true in today’s improving economy. Your employees are not likely to bolt if compensation is competitive and everything else is good.

You can identify lack of fit quickly or over time. Our company once lost a new employee during her first lunch break. We assume she survived because her four-hour paycheck was cashed. The good news is that her departure was fast and we hadn’t invested a lot of time in training and onboarding. Administer aptitude and personality tests before hiring to weed out applicants that don’t fit the job or culture. Of the two, culture is usually more important. You can train someone to do a job, but culture clashes can be devastating. Be honest in the interview process and don’t paint a glowing picture that is inconsistent with reality.

Train your supervisors, and yourself, in employee communication and management techniques. Set reasonable expectations and give employees tools to succeed. Provide constructive feedback on your employees’ performance and solicit responses. Listen to your employees’ ideas to improve the workplace and your company’s profitability and follow through with realistic and practical suggestions.

Share the vision of the company and explain how the employee contributes to its goals. Get to know your individual employees and what they value. Some might be financially motivated while some want recognition. Others might value time off to spend with family and friends. Everyone enjoys praise. Recognize high performance with employee-specific and appropriate compliments and rewards.

If your employees are happy and motivated you will cut your turnover rate.  You will spend less time and money hiring and training new employees. Productivity and profits will increase. Profits aside, everyone will enjoy a working environment with positive attitudes and where teamwork is the norm.

Ed Rappuhn is a mentor, workshop facilitator, and the past-chair of SCORE Nashville. SCORE mentors guide entrepreneurs in starting and growing their businesses. Sign up for a free SCORE mentor, find out about our reasonably priced workshops and other services, or volunteer to become a SCORE member atwww.scorenashville.org