Employee Facts That Should Scare Employers
The employer-employee relationship is complicated. This is understandable as each person is different. Simply because your managerial style works with a group of employees, it doesn’t mean it’s effective with the other. For this reason, it’s normal for employees to come and go.
You should not take this complicated relationship for granted, though. These facts must tell you it can affect your business operations. It can also influence your potential of hiring good employees.
Fast Turnover Rate
A CNBC article revealed that an employee stays for 1.5 years on average. This is much shorter than what experts recommend, which is five years. Indeed, turnover rates today are fast. Although it may imply that new talent is available, it can be detrimental to your business. You end up spending more money on training, which means reducing your efficiency and productivity. You also run the risk of hiring a good employee who doesn’t fit well into your company culture.
Resolve employer-employee conflict as soon as possible. Companies can go through a union arbitration process if necessary. Litigation lawyers can assist during negotiations and can also be there to help come up with a peaceful resolution.
A 2015 Gallup study revealed that 50% of employees believe they have a good relationship with their managers. That’s well and good, but it could’ve been better. This also implies that half of the employees leave their companies because of bad bosses.
Being a bad boss doesn’t mean being violent or offensive. In fact, one of the common reasons for leaving is the lack of clarity. Managers don’t provide them with the support and guidance they need to do their jobs well. In some cases, they are blamed for things they didn’t know.
As managers and business owners, you need to find a way to lower your company’s turnover rate.