In 2023, the voluntary turnover rate in Canada was 15.5%. This is the measure of employees deciding to leave organizations. Click the video below to watch or scroll to keep reading.
So why are they leaving? A 2023 study indicates the top reasons are:
- More money (37.1%)
- Ability to work remotely (18.6%)
- Career advancement (13.4%)
So what’s the big deal? Let’s look at each of these and how your current policies might be hurting you more than you think:
More Money:
You are bound by your salary ranges and HR Policies – right? But what if they are fundamentally flawed?
Did you know that it costs between 50% and 200% of an employee’s salary to replace them? If an employee makes $100,000/year for ease of this example, it could cost you $50,000 – $200,000 to replace them.
Wouldn’t you rather just bump their pay by $10,000 – $20,000/year to keep them? It’s time to start making exceptions to these antiquated rules for those employees you really need to keep.
Ability to work remotely:
One of the most disengaging activities you could impart on your employees is a “return to office” mandate. And yet, almost all organizations are doing it.
Why?
The model aims to allow for flexibility while reaping the benefits of working together in person.
And yet, 18.6% of employees are leaving because of this.
So, instead of mandating a minimum # of days in the office as a “one solution fits all”, I implore you to talk to your employees one by one and ask them how important remote work is for them. Check in to see how often they ARE willing to come into the office. See if you can come up with a shared agreement. Maybe it’s quarterly team days or monthly socials. Giving your employees flexibility and agency over their work location will keep these 19% happy.
Then, focus on deliverables and not hours of bums in seats. If your employee is meeting or exceeding their goals and targets, who cares where they are when they’re doing it?
Your high performers are going to be able to produce more than 2 of your low performers. Wouldn’t you rather focus on keeping them happy than forcing them into a work environment that will have them looking elsewhere?
Yes, this means you might have to rethink your office space and yes, this means you won’t see everyone every day in person.
BUT, there are other ways you can create a sense of team and togetherness.
Between the office space consolidation and the lack of turnover (f you do allow those who want it to work remotely), you might even have extra money to pay those high performing employees some additional salary to avoid turnover reason #1.
Career Advancement:
High performers go above and beyond because a) they care about doing quality work and b) they want to be recognized for it. Those who are at the top of their game can stay there for a while, but then they’re going to want to be challenged with new opportunities.
It’s critical that you keep your high performers at the top of your mind when creating new positions and try to give them opportunities for growth and advancement.
Nothing can cause greater distress than “rewarding” a high performer by keeping them where they are because it’s convenient for you.
That will work for awhile, but then they’re either going to leave or become demotivated.
Please talk to your employees about where they want to go and be the catalyst for helping them get there. Wouldn’t you rather have them soar at your organization rather than leave bringing all of their knowledge and talent with them?
The workplaces and organizations that excel in the future are the ones that treat employees as individuals and reward them accordingly.
Leaders Who Care:
I realize this article assumes you have the power to make these changes. Often those of you leaders who care the most, are bound by your organizations rules and policies and aren’t able to decide how things are done.
If this is you, there are other things you can do to foster the value underneath the request. For example, while you may not be able to increase your employee’s salary, there may be other things you can do for them within your power or sphere of control.
Let’s Talk:
If you want help assessing your current talent pool and finding new and innovative ways to retain your top talent, reach out and we’ll jump on a call.