In every organisation and industry, it is inevitable for employees to join and to leave. But, if you recently discovered that your staff turnover rate is too high, then it can greatly affect your business productivity and growth. Did you know that every time an employee leaves, it can cost you a significant amount of cash? Employers spend up to 30% of the average employee annual salary to replace a departed staff.
It is essential to keep track of your business expenses so you won’t face tight cash flows and have better management of your finances. Engage in a professional firm which offers accounting and bookkeeping services to provide insights, analysis, and financial reports that reflect where your cash goes to. Our team also provides SME accounting services to give you any financial information you need to retain, manage, and hire the right people for your company.
It is important to note that the high staff turnover rate can spell bad news towards your business’s bottom line. Here are 5 key issues we have identified that could be the cause of high staff turnover for your business.
1. Poor Employee Selection
Recruiting employees that do not share or identify with the company’s values could see your company ending up with a high turnover rate. Finding the right people to build your team can be a challenging task you should be patient with.
Be on the lookout for talented individuals who share the same values, ambitions, and can represent your company well. Hiring the right employee takes time, strategy, and teamwork. In essence, ensure that the employees you pick are best suited for your company, rather than hoping that they are able to fit in.
2. Toxic Work Environment
While you may have picked the right candidates, they might resign in under six months if the company’s culture does not align with who they are or suit their working style. Workplace culture and environment is the most crucial factor that drives employee engagement. If it is unhealthy, you can be sure that genuine, hardworking, talented individuals will be taking their leave soon.
The root cause can be anything from the people, atmosphere, or a combination of those factors that bring serious disruptions to the work day. A hostile workplace can also cause one’s well-being to suffer with negative health impacts. Some signs of a toxic work environment can be narcissistic leadership, lack of communication, and unmotivated co-workers.
3. Overworked Employees
Did you know that Singapore has the second-highest overworked employees in the world? According to Kisi, a tech company, the study also revealed that Singapore came in 32nd among 40 cities for work life balance.
When employees consistently feel that there is too much work piling up on their desk, this can easily lead to a rise in workplace stress. If there’s never enough time to finish what they have, it can inadvertently lead to a decrease in productivity. Unhappy employees who are not able to overcome these work-related stress and intensity are likely to resign. Finding the right balance of high productivity is important. If most of your staffers feel overworked, you can start a brainstorming session with the leadership team to address these performance issues.
4. Lack of Growth and Progression
As an ambitious business leaders, you are always looking towards the growth and progress of your company. As such, you’d expect to work with like-minded individuals to help you achieve that goal. These are your best talents, and you should look to retain them.
One way to combat this factor of staff turnover is to invest in your employees’ progress. Show them that they can grow within by hiring and promoting internally. Challenge them with new responsibilities, and provide reward and recognition for their valuable work and contribution.
5. Uncompetitive Pay and Benefits
Low salary is another major concern of employees. If they are constantly putting in the work without receiving fair wages, it can gradually make them feel unmotivated to do their tasks well. A good compensation package will not only be attractive to quality talents, but also retain them for the long-term so your business can grow.
We offer professional account services in Singapore that can also help you discover more behind your financial numbers. This way, you can figure out how you can best compensate your employees. Offering competitive pay and benefits packages can ward off advances by competitors and at the same time, show that you value their hard work. Employee benefits such as extended leave days, family health cover, or sponsored education could count for more than their actual salary.