Research asking employees why they left their workplace cited poor management as the top reason, accounting for 75% of voluntary turnover. And that’s not all, reasons vary by generation with 50% of millennials stating burnout as the reason to quit and 35% of boomers citing burnout. Lack of recognition was also a major reason to quit.
The research suggested that not only do executives not realize the real reasons employees leave, they also underestimate how much it costs the company with 43% of companies not tracking the costs to recruit, hire and bring new staff on board.
The research found that employees stay an average of 8 years with the average annual turnover rate being 18%—meaning that companies are spending a lot of money on a constant recruiting process. Not tracking these expenditures means that companies don’t have a good handle on how much it costs them not to know employees’ reasons for leaving or trying to resolve those reasons.
Considering the savings potential, not to mention the advantage of being able to keep good employees longer, the report points out that greater attention to such factors as management, burnout and employee recognition can make a big difference.
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