With unemployment near historic lows, employees have the gift of choice these days. They’re able to leave unfulfilling jobs with the confidence that they’ll find a better one. While this is great news for employees, employers everywhere are wondering how to reduce employee turnover.
8.6 million people quit their job this year alone according to the Bureau of Labor Statistics (March 2022), and Gallup research has found that 48% of employees are actively looking to switch jobs. While these statistics are staggering, it’s not all that surprising. Many employees have emerged from the pandemic with their values reprioritized – and spending our lives in a dead-end job no longer feels good enough. Employee turnover is causing a rapid increase in business/corporate overhead. The estimated cost of replacing an employee is one half to twice the employee’s salary depending on the position. So, if you are wondering how to stop the bleeding of employee turnover, you are not alone.
In order to know how to reduce employee turnover, you need to know why people are leaving in the first place. A recent study by Flexjobs surveyed over 2,000 employees and found the following top five reasons people cited for quitting:
- Toxic company culture (62%)
- Low salary (59%)
- Poor management (56%)
- lack of healthy work-life boundaries (49%)
- Not allowing remote work (43%)
Often, when a recession is looming, businesses are genuinely not able to offer better pay or better benefits over the long term because they fear what the economy will do to their business. However, improving company culture, management, work-life boundaries, and remote work options are changes that can be implemented for little cost, and they often generate a significant improvement on the business’ bottom line both financially and in overall efficiency.
Each company faces its own unique challenges, and many employees would rather avoid conflict by leaving rather than discussing their specific issues directly with their employer for fear of retribution or exacerbating the problem. Therefore, the solution to employee turnover is often obscured from the employer. This is where employee/employer mediation can help.
I meet with the employees and employer as a mediator in independent confidential meetings to discuss their sources of strife or dissatisfaction within the job and discover what is and is not working within a business structure from each vantage point. Then, I meet with the employees and employer together. Although I keep what I learn in the independent meetings confidential, unless given specific permission to disclose, I use that information along with my unique training, experience, and education both as a mediator, attorney, and business executive to help guide your team to determine a path to creating long-term fundamental changes within your business’s culture and management. These changes will generate a significant ROI and improve both your employees’ lives and your own.
If you are a manager who needs help with employee turnover – or you have an employee conflict that you would like help trying to resolve – then please contact mediator Nicole Weaver-Hansen to set up a free 15 min consultation today to determine if mediation is right for you. Nicole is an experienced mediator helping resolve conflicts and has been helping businesses to improve culture and productivity for over two decades. To learn more, click here.