7 Causes of Employee Turnover AND How to Fix It
Written by: Justin Reynolds
It costs a lot to hire an employee. On top of salary expenses, there are also benefits to be paid and costs associated with recruiting and onboarding. Additionally, companies also have to deal with a learning curve; it can take as much as two years for a new hire to become completely productive.
All things considered, organizations should do everything within their power to reduce turnover as much as possible.
To do that, you first need to understand the more common reasons employees decide to leave. Here are seven of them:
1. Employees are worked to the bone
Our previous research revealed that nearly 70% of employees feel as though there aren’t enough hours in the week to do their jobs.
Having too much work on their plates week in and week out isn’t exactly motivating, to say the least. Overworked employees will often jump ship to join companies that understand the importance of work-life balance.
The fix: Make sure work is distributed evenly across your organization. If you're not sure whether your employees are overworked, the easiest way to find out is by asking them directly. Use anonymous pulse surveys to figure out whether your employees believe they are responsible for too much work each week. If the bulk of your staff indicates they're overworked, it may be time to hire new employees or at least bring freelancers into the mix.
2. Team members are treated differently
When the boss’s favorite employees start getting treated differently than everyone else, it’s only a matter of time before other workers get angry. You can’t let one employee make their own flexible schedule if no one else is given that privilege.
The fix: Make it a top priority to treat all of your employees the same. Don't play favorites. If your company doesn't have a remote working policy, for example, you can't let one or two employees work from home while expecting everyone else to show up to the office. It's a surefire way to draw the ire of your staff.
3. Workers like making money
Almost 25% of employees would leave their jobs for a 10% raise somewhere else, our previous research revealed.
If your organization offers miserly salaries and hesitates to give raises, chances are members of the team will constantly be on the lookout for an escape.
The fix: Since it costs a lot of money to replace an employee, you are better off giving your workers regular raises. You may also find salary transparency — the practice of letting each employee know what everyone else is making — helpful in keeping employees content.
4. Company culture is toxic
Work culture is strongly correlated with employee happiness. When workers love their company’s culture, they’re happier and more productive. When they dislike the company culture, they’re miserable and unmotivated.
Take a look around. Do your employees seem happy? Or do they seem to be going through the motions?
The fix: If your culture leaves something to be desired, take proactive steps to improve it. Once again, you can use pulse surveys to see what your employees think is the best path forward.
5. Employees hate their bosses
If you notice that a lot of your employees who work under a specific manager are jumping ship, it’s not because your company is so awesome and they simply can’t keep up with it. It’s because the manager is terrible.
Remember, people quit their bosses — not their companies.
The fix: For starters, do your due diligence to increase the chances you hire the right managers in the first place. Just like you're invested in your employees' professional development, you also need to support managerial training initiatives. Finally, you need to keep tabs on your managers to make sure they're doing a good job.
6. There aren’t enough career development opportunities
Employees want to develop professionally. They want opportunities to advance their careers — not just crank out work for the sole benefit of their employer’s wallet.
Our research has found that only 25% of workers feel as though there are ample opportunities for development at their organizations. If you never offer your staff career development opportunities, don’t be surprised when there’s an exodus.
The fix: Show your employees you care about their careers by offering adequate opportunities for growth. Start a mentoring program. Encourage your team to go to relevant conferences. Keep your doors open and make yourself available. Invest in learning and training.
7. Employees aren’t recognized for their hard work
You can’t expect your employees to bust their tails on a daily basis if you take their efforts for granted. When employees aren’t recognized for their contributions — at least every now and again — they may look for an exit.
The fix: Bolster your employee recognition program by showing appreciation in a genuine and sincere manner. Give credit where credit's due.
Chances are if your organization is experiencing high turnover, you’re guilty of at least some of the above.
The good news is that you have the ability to make changes that should encourage employees to stick around for the long haul. The faster you do that, the sooner you’ll see your employee retention stats tick up.
Solving Your Biggest Client Issue May Be at Your Fingertips
Written by: Shileen Weber
When the American Funds’ Capital Group asked 400 advisors last year to name the biggest issues they face in their businesses, it wasn’t the DOL, market uncertainty or the economy that sat in the center of the idea cloud of answers.
It was client issues.
At a time when regulatory concerns and market turbulence would seem to be at all-time highs, the advisors who answered the survey were most concerned about servicing their clients as well as ways to find new ones and grow their businesses.
It’s one of the ironies of the business, that the things most people find so hard to manage – creating financial plans, managing assets and staying ahead of events – are what advisors find to be the easiest parts of the business. Marketing - the business of selling themselves – can be the area advisors find the hardest elements to master.
In this age of instant communication, it can be even more intimidating to market your practice, especially to younger clients for whom many traditional methods like newsletters, postcards and phone calls don’t work anymore. For them, email is the preferred way to get information, and, if it’s important, they are more likely to respond to texts, not phone calls.
But, it doesn’t have to be that hard. The digital age gives you access to ideas and content of all kinds you can use to touch your clients in a way that positions you as a valuable resource. The key is to keep it simple, stick to some basics and create consistent outreach that clients and potential clients are interested in and will appreciate you sharing with them.
Here is a common-sense approach you can take that will not require you to hire an expensive agency or take valuable time away from managing your clients’ assets and running your business.
Content is King
Create a content calendar for the year: Think about reasons to touch a client 13 times during the year – that can be once a month and on their birthday. (The common rule of sales is that it takes at least 7-13 touches to make a connection.) The number is limited and keeps you from inundating the clients who likely already feel inundated with content. You can take the seasonal approach – tax planning in the fall, January for account review content, college financing in the spring – and supplement it with topical events during the year. Creating a calendar will help you stick to a plan. Here’s one resource for a content calendar.
Review what content is already available to you: Basically, this means finding the resources you already have and determining what pieces will be most valuable to your clients. Start first by checking out content your broker-dealer already generates that you can personalize. Many firms have economists who write regularly about the market. That’s content you can pass along to keep clients up-to-date they would not have access to anywhere else. In addition to your broker-dealer, mutual funds, your clearing firm, and money managers are all excellent sources of informative and even analytical content.
Personalize the content you use: Add your name, the client’s name or some way to avoid making it feel like canned content that you are using just to check the outreach box. See what capabilities your email program may have to help you.
The birthday strategy: One advisor used clients’ birthdays in a new way. Instead of the card or lunch date, the advisor asked the client’s spouse for a list of friends he could invite to a birthday lunch and made it a memorable event that was also a soft approach to getting referrals.
Become a curator of good content: What your review will show you is that you don’t have to generate the content yourself. You can point clients to pieces you find insightful. You are likely already doing this every day just to keep yourself informed. The next step is to compile it and send out the very best pieces to your clients, again, with a note with your own thoughts about why you found it valuable.
Find out what is working and do more of it: Use your client interactions, in-person and online, to find out what types of content clients liked and any they didn’t. You can use tracking on your emails to see how many were opened as a measurement tool, but the personal interactions tend to provide more insight than raw data.
Be disciplined about your execution: Get help from an office assistant or schedule the time each month to do the content development and outreach. As any good strategy, if you make it a habit, it won’t seem so hard.
Most importantly, be yourself and be personal: You may want to regularly get personal by talking about your family and hobbies. The ultimate is if you can provide content that is personal to your clients, not just about their investments – they get that from their statements, apps and online portals. Think alma maters, hobbies, children and parents.
Of course, as a disclaimer, you have to make sure all content and communications are complying with regulations and the rules of your own broker-dealer.
The process of creating a plan will get you thinking about your clients in a new way. That exercise alone can re-energize your business and get you seeing marketing opportunities in places you may never have seen them before.
Shileen Weber is Senior Vice President of Marketing and Communications at GWG Holdings. She was previously Director of Online Strategy and Client Experience at RBC Wealth Management, where they placed first in two JD Power and Associates U.S. Full Service Investor Satisfaction Study (2011 and 2013).
- 1 of 1774