Many companies do not understand why their turnover is so high. Some think that it is all about money and benefits. But unless you pay below standard it is not about money. Sure, an employee will tell you that he or she left for a better opportunity. You might, therefore, assume that it had to do with money but don’t be fooled. There is much more going on than just money.
You cannot treat employees as commodities assuming that they will come to work just because they are getting paid. Some vendors of perks may even tell you that if you offer special perks then your retention will be better. You would need a very large amount of those perks to try to buy loyalty. And what would you gain in loyalty or performance? You might even entice poor performers to stay when you would be better off with retaining only the high performing employees.
This is a fact. Employees do not leave companies, they leave supervisors. Many supervisors believe that if only the pay and fringe benefits were better their best employees would stay. However, people who are truly engaged with their company and their team have a sense of belonging. They will not leave for a slightly better offer.
On the other hand, employees who are disengaged with their workplace and with the work they do can drag down team performance. Employees who are disengaged show up for work, but they leave their hearts and minds somewhere else.
The book "First Break All the Rules: What the World's Greatest Managers Do Differently" by Marcus Buckingham & Curt Coffman used data collected over 25 years with a million employees to identify the basic roles of a great leader/manager. They identified 12 questions which have been used by the Gallup organization. The potential effect of great leadership was summarized in the 12 questions employees ask. How do you feel about these questions?
1. Do I know what is expected of me at work?
2. Do I have the materials and equipment I need to do my work right?
3. At work, do I have the opportunity to do what I do best every day?
4. In the last seven days, have I received recognition or praise for doing good work?
5. Does my supervisor or someone at work seem to care about me as a person?
6. Is there someone at work who encourages my development?
7. At work, do my opinions seem to count?
8. Does the mission/purpose of my company make me feel my job is important?
9. Are my co-workers committed to doing quality work?
10. Do I have a best friend at work?
11. In the last six months, has someone at work talked to me about my progress?
12. This last year, have I had the opportunity at work to learn and grow?
If you are getting positive answers to these questions you have engaged employees. There is a positive correlation between engaged employees and loyal customers. As we all know loyal customers create successful companies. In the end, the culture of the organization drives its success.