By Jess Low
A company’s development becomes unstable when the employees turnover rate increases. Work efficiency declines drastically when employees are always changing, and it will eventually take a toll on the company’s operation and profits.
What actually causes a high turnover rate?
Among the many reasons for employees leaving a company, Jack Ma cited two as the most honest of all.
Firstly, the boss fails to offer a stable and good remuneration. More often than not, we find that start-ups love exaggeration: they tend to keep telling their employees that the company has a great vision.
In reality, however, if businesses fail to even pay a basic salary and the employees work on an empty stomach — they are not going to put in a lot of effort into their work. Instead, they are very likely to be looking for other income sources.
When they are thinking about earning more income elsewhere, they will never get their energy and mind to be focused on one job.
It is also important for bosses and employees to do their own job. It is the bosses’ responsibility to support the company and make sure the company can afford to pay salaries, while the employees’ duty is to do their own job.
A meagre salary with a vision of the company’s bright future — this combination can hardly retain talents. Truth be told, it is also very impractical.
Secondly, a high turnover rate happens when the employees feel they are not being valued. Resignation is an easy move for them if the superiors fail to listen to their employees’ opinions so that they feel being valued.
Other than these two points, this year I came across another commonly-heard reason mentioned by job seekers: the company does not have a healthy or comprehensive system.
Imagine employees who worked more than 12 hours a day but earned no overtime pay. With very vague job descriptions, some take up every task — they work on many different things without a clear and distinct standard. This could fail them when it comes to employees’ KPI.
Given such a situation, talents tend to leave the organisation. When you lose good employees, it costs a lot of time and money to train and nurture new ones.
Having learnt the reasons behind employees’ resignation, here are some ways to retain them.
Firstly, bosses must be generous to offer a good salary to the employees. A good salary is not the only reason to retain employees. But if workers are not offered a reasonable salary, a high turnover rate is the inevitable outcome.
If a company can’t afford to pay a minimal 90 per cent of a market pay rate, they should at least offer more benefits to their employees This includes medical coverage, worktime meals and even let them own the company’s shares.
There is a saying that goes – if you want to go fast, go alone; but if you want to go far, go together. Bosses stand to receive more when they are willing to share more profits with their employees.
Another way to retain employees is to give them freedom. Giving freedom means that you trust them. Outstanding employees need no micro-management. Provides clear instruction, tell them what your expectations are, and they will get the job done.
At the same time, empower your employees by offering them the resources they need, suitable suggestions, trust, and freedom. This is how you could keep the turnover rate low.
Good rapport with employees is another good way to retain employees. Offer support and interact with them by engaging them in the company’s business discussion. Set realistic targets, put their skills to good use and encourage them.
Moreover, providing a sense of purpose at work is quite important in retaining young talents. Employees who have more than ten years of working experience are usually working to provide for the family. They have developed a sense of purpose for work throughout the years. However, it is hard for young talents to think about the values at work, given that their qualities of life are better than prior generations.
The final key point is this – clear communication is a good way to retain talents. When the company comes up with new development or plan, employees should be informed promptly so that they feel like they are part of the company.
When they get to participate more from the beginning, they know they are directly influencing the ultimate outcome of a business project. This is good for building a sense of belonging and accountability.
With a method or two, the key point is to retain good employees to strengthen the company’s advantages and competitiveness. Retaining good employees is definitely an advantage for you, your team and the company as a whole.
Jess Low is the CEO and founder of Job Majestic and JEV Management
