Why great employees are leaving great companies: An epidemic
Your company is great. You have top-notch benefits and a great company culture.
Free snacks and an awesome coffee machine? Check. Above average salaries? Check. Beer on tap? Of course. Flexible time off? Duh.
Your company culture doesn’t really matter.
Yes, you read that right.
When it comes to employee retention, none of those perks make a difference. You’re still losing those great employees. When you get down to the core root of employee retention issues, often times it comes down to your managers. How bad is it? According to Gallup, one in two employees have left their job to get away from their manager at some point in their career. And it’s becoming an epidemic. 84% of organizations anticipate a shortfall in the minimum number of qualified leaders in the next five years.
Employees leave managers, not companies, and, yikes, it is expensive to replace them.
The good news? Not all is lost! By putting your managers through employee retention training, you can improve the manager-employee relationship and keep those all-star employees. Employee retention training teaches the manager critical skills such as allowing for open communication in the office and help develop the employee skillsets for not only career growth, but also allowing them to become a bigger asset to your firm.
Addressing the many hot buttons that retain employees is crucial. Win-win!
How can you do this? Set up regular meetings between the manager and the employee. Make sure that you know the goals the employee has and what their needs are. Provide constructive criticism, but don’t forget to praise them on a job well done as well. Keep your communication open and honest while discussing retention.
Most managers are great- in fact, most managers keep employees from leaving – but all it takes is one bad apple to create havoc for your talent acquisition group. They are the ones that work hard to replace these employees that are ripe for other recruiters to yank them out of your great company. Let’s not even discuss the costs associated with the turnover. (Another topic for another day).
If the manager and employee can’t work together, flexible time off and beer on tap won’t be enough to make them stay. More and more jobs are offering creative perks, but still losing their talent.
Yet, there is hope. According to Deloitte, high-performing companies spend 1.5 to 2 times more on leadership than other companies, and reap benefits that are triple or quadruple the levels of their competitors. Start internally with training your managers with retention in mind, and work your way outwards from there to create an even better culture.
Have you lost employees from a bad manager-employee relationship? We’d love to hear your tale!
Have you left a company because of your manager? We’d love to hear about it.