Parting ways with a company are commonplace in the corporate world. Rarely do you see an employee stick with one employer throughout his or her life.
Resignations from work aren’t necessarily a bad thing as there are different possible reasons behind it. For instance, millennials—the generation that is likely to take over the corporate world in the coming years—are known for job-hopping.
Perhaps it’s because they are more open to grabbing job opportunities which may possibly be better than their current one.This causes them to switch jobs more often than employees from other generations—a reason backed by a study from Gallup, stating that 60% of millennials are open to new job opportunities. The same survey noted that 21% of millennials switched jobs in 2016.
Aside from this noted reason, millennial employees claim that job-hopping gives them a chance to earn more, gain new skills, and have a better resume by having multiple employers.
However, it’s also true that not all departures are done favorably. Sometimes, the problem lies with the company itself, causing high employee turnover. This refers to the cycle of workers resigning and the search for their replacements.
What businesses should be wary about, though, is if the reason pertains to the company and how often such resignations happen. Some of the common reasons behind employee resignations that may concern their current employers include the following:
- Company instability and overall poor management
- Low salary and benefits
- Lack of personal progress
- Lack of credit or feelings of unappreciation
- Not getting enough training or mentoring
- Inflexibility with schedule
- Not being a good fit with the culture
Here are the numbers behind these common reasons:
- 31.5%:Lack of personal progress
- 22.4%:Low pay or benefits
- 20.2%:Not being a good fit
- 16.5%:Poor management
- 7.7%: Inflexibility
- 1.7%:Company instability
Resignations may not always be bad, but the effects on your company as the employer is also not favorable, especially since you need to shoulder the costs of hiring and onboarding every time someone decides to leave. Here are more numbers to take note of when it comes to the impact of employee turnover:
- 31% of 1,000 interviewed employees reportedly quit after six months for varied but preventable reasons
- More than 50% of global companies have a problem with employee retention
- 46% of HR managers say that burnout comprises half of the annual turnover
If your company is currently seeing a high turnover rate, perhaps it’s best to observe your workforce. There are warning signs that you can look out for to know if any of your employees are considering leaving the company:
- Frequent tardiness and absences
- Low productivity and work quality
- Being tired or fatigued
- Declining professionalism and non-compliance to company rules
- A penchant for working alone
- Refusing social events with workmates
- Looking forward to the end of the shift
As already mentioned, not all resignations are negative, and that some degree is to be expected when running a corporation—there is no way of eliminating turnover. However, it is also true that high employee turnover rate is never a great sight, which is why you need to make sure to give your employees a good reason to stay, or at least let them leave in good terms.
If you see resignation reasons that are related to the management of the company more often, you’d have to look and see if there’s something wrong with some aspects of the business, and if you can correct them. Whether or not you’re trying to decrease turnover rate or just want to keep great millennial talents from job-hopping, these following steps can possibly help you achieve both:
- Have your HR or recruitment agency find the best talents that will stay long-term.
- Improve your onboarding process.
- Train managers to be good, approachable leaders.
- Give employees a chance to learn new things, even if it’s not under their scope of work.
- Have them make goals to meet for that salary raise or promotion.
- Create flexible work conditions to promote work-life balance.
- Do regular evaluations and make corresponding actions on their feedback.
- Learn your mistakes through meaningful exit interviews and work through it.
- Conduct activities to boost morale and mental well-being.
- Maintain a favorable work environment.
Keep in mind that the best talents will keep your company afloat, so make sure to give them a good reason to stick around.