Losing an employee because they were unhappy, frustrated, or angry should never be taken lightly. If it happens frequently, you probably haven’t built a “sticky” enough organization. This week’s post will show you why the concept is important and next week we will talk about how to get it done.
Here’s why you need to focus on building teams that stick:
You Can’t Survive on Your Own:
Longstanding, healthy relationships are impossible to develop if your employee turnover is high. Real relationships take time to grow. If you can’t retain key employees, you’ll soon find yourself surrounded by strangers, and you cannot trust strangers the way you can trust longtime employees. Neither can you rely on a stranger to challenge you as a leader.
High Turnover is Bad for Morale
Intentionally or unintentionally, every employee that leaves sends a message to everyone still working in the organization. The message is simple: there is a better place for me to be than here. Your remaining employees might think that the leadership and management of your company:
- is incompetent or malicious
- is out of touch or ambivalent about its employees
- hired the wrong person
If an employee was unhappy, they may have been unhappy with their situation for a while and may have shared those sentiments with others. Misery loves company and dissatisfied employees tend to find each other.
There is no short cut for gaining experience. A long-time employee has figured out how to work with specific co-workers, developed systems and processes, made mistakes, and learned lessons. When you lose an employee, that individual’s replacement must then re-travel the same experience path and may never be able to achieve the same level of mastery as your previous employee.
A high turnover rate doesn’t just impact those within your organization. Our communities and industries are more interconnected than ever. Glassdoor.com, for example, offers a “free inside look at jobs and companies, salary details, company reviews, and interview questions – all posted anonymously by employees and jobseekers.” How will you attract new top-notch talent with a reputation for burning out existing employees?
High turnover is costly. Severance packages, headhunters, lost productivity, loss of strategic relationships, training, education, etc. The costs of losing employees are astounding.
As an executive coach with decades of experience leading teams, I have discovered that it is imperative to hold on to employees who have shown excellent past performance as well as struggling employees who are will to take the initiative to improve.
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