The Curse of High Turnover Rate and How Organizations Can Deal With It

Research shows that there is a psychology behind employee retention, and not every organization knows how to reduce its high turnover rate. A high turnover rate can compromise a team’s productivity and often forces companies to change directions.

A company’s high turnover rate discourages employees to be part of it for a long time. Not to mention, employees leave for a number of reasons. And oftentimes, it is not easy for HR professionals and managers to pinpoint the main issue.

woman in black long sleeve shirt using macbook

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Did you know companies lose over 10% of their employees annually? Well, employees mostly switch to avoid regressive and excessively formal work environments. If a company wants to understand why it has a high turnover rate, it needs to take a closer look at its current work practices.

A lot depends on organizational culture that can discourage or encourage workers to be part of the company. It is 2022, and many companies continue to hold on to traditional work standards that hold back employees’ creativity and productivity potential.

Choose any industry and you’ll find that employee turnover rate is an essential metric to track performance. When workplace dissatisfaction crosses a thin red line – more and more employees start to leave. And instead of dissecting turnover rate calculation – companies should focus on elements that directly impact employees and force them to leave.

Whether it’s a lack of internal promotion or recognition, adopt neutral factors to support, encourage, and motivate employees. From a small business to a large corporation, a high turnover rate can be extremely disruptive and expensive.

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Let’s look at what causes a high turnover rate and what you can do to minimize it.

Different Treatment, Different Employee

Nepotism still reigns supreme in many companies, and bosses often have favorite employees that get special treatment. But this behavior makes the rest of the employees angry. In fact, favoritism in the workplace hits the self-esteem and morale of the employees.

So, before the HR manager gives one employee a flexible work schedule and other privileges, consider its consequences in the form of a high turnover rate. But inequities in the workplace go beyond favoritism – it turns into an unconscious bias toward other workers.

In fact, this unconscious bias can take many forms and indirectly changes the way employees see their bosses and management. When special treatment goes unchecked – it can discriminate against employees who may have actually deserved to get flexible work hours, bonuses, and recognition.

man using MacBook

The Solution

One of the top priorities of managers should be to treat all employees equally. And that means no special treatment and picking favorites. Companies should also revise their current policies to make the work environment more equitable and transparent.

Employees Worked to their Limits

Most workers feel as if there aren’t enough weekly hours to perform their jobs properly. It would be fair to say that many employers overlook the practicality of work requirements and whether or not employees can take care of tasks in a specific time.

And before you know it – employees are experiencing burnout and high-stress levels. Today, 1 out 7 people concur that their current job leads to severe burnout. When employees are burned out and overworked – they feel the need to jump off the ship and switch to another company.

shallow focus photography of red and white for hire signage 

The Solution

A simple solution is often the best solution. For starters, helping employees create a work-life balance works in favor of the employees and the company. Office managers should ask employees directly about whether or not they’re overburdened. Managers should distribute work evenly across the organization to make sure no employee is stressed out, under pressure, or overworked.  

HR managers can also chip in and use anonymous surveys to find out the actual consensus of burned-out employees. And if the current workforce is overwhelmed by the tasks and responsibilities, bring freelancers and independent contractors into the mix.

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Employees Don’t Like their Boss

When you see more than a few employees working under the same manager leave the company – it means there is a direct conflict at play. Employees usually don’t have nice things to say about strict and authoritative managers.

It is common knowledge that employees quit their managers/bosses – not their companies. When employees feel the bosses are not being realistic – it shatters their trust and forces them to question the transparency in the workplace.

Remember, employees that hold their positions for a long time trust their bosses and managers. And when bosses fail to maintain the trust of their employees, it hits employee retention.  

person using phone and laptop

The Solution

Employers have to be due-diligent and hire managers that would listen to employees. Bosses should not hire floor managers who demand employees to deliver at all costs and show unreasonable behavior. Just like employee training, employers should also support managerial training.

It is common to discuss and find new ways to monitor employees’ performance. But who watches the watchers? The burden of responsibility falls on bosses to keep an eye on their managers and ensure they’re not using any tactics that might be rude, improper, or unethical.

Toxic Organizational Culture

You cannot talk about a strong workplace culture without considering employees’ happiness. When employees love their job and fit in naturally in organizational culture – they tend to be more productive and happier.

But when employees develop disdain and start to dislike the company’s culture – it makes them unmotivated, demoralized, and miserable. Toxic work culture is one of the common reasons employees move on to another company. Employees who find it difficult to adjust to a company’s culture are less likely to stick around.

The Solution

Often, all it takes for HR and floor managers is to look around the office premises and see if the changes positively or negatively affect their employees. See if workers seem happy all around or are having a rough time.

Take proactive measures to improve organizational culture and bring elements that can make work desirable to employees. Want to get unfiltered feedback from your workers? Use pulse surveys and collect the feedback that can help you make the “right” changes.

woman sitting around table holding tablet

With Nitro Cold Brew, you can improve your organizational culture.

Little to No Recognition for Employees’ Hard Work

It is a common cause of a high turnover rate that boils down to favoritism. But lack of recognition is often direct, and employers don’t feel the need to pass any judgment on employees’ work. Many employers continue to take their skilled employees for granted and fail to recognize their hard work.

Employees who report that they rarely receive any recognition are more likely to quit. Even though managers and bosses get plenty of opportunities to appreciate their employees – they fail to recognize their employees, especially women.

In fact, women are recognized far less than men for doing the same work and pushing creative boundaries at work. Ultimately, it affects the company’s employee retention rate and becomes difficult for the organization to maintain a diverse workforce.

The Solution

The best thing for managers and business owners can do is revamp their employee recognition initiative. It is never too late or too early to show appreciation. And the more sincere and genuine managers appear to be – the more respect and trust of employees they can earn.  

Most employees crave recognition from their peers, managers, and bosses. Many organizations now see value recognition of employees as an opportunity to bring out the most talented and productive employees into the spotlight. And it’s the spotlight that skilled workers deserve and need to start a new journey at their companies.

Managers should also give their teams an opportunity to recognize and encourage other team members. Like recognition from bosses and managers, peer recognition matters. But employers have to give teams a chance to talk about the successes of their colleagues and how they pushed them to go above and beyond.

Final Thoughts

When a high turnover rate creeps in, the company’s productivity and workplace morale goes out of the window. If your company is going through a rough patch of high turnover rate – assume your employees are not happy with the current work practices. The good news is that you can make progressive changes to make the work environment more flexible and persuade employees to stay for years.

If you want to retain skilled employees for a long time, pay close attention to their work preferences and concerns. Follow the lead of most broadminded companies that consistently collect feedback from their employees to spot any irregularities that might be putting an extra burden on employees. A lot of the time, HR professionals make sure employees are not frustrated. But no matter how minor or severe an issue may be – address and resolve it before it’s too late.

Everyone loves Nitro Cold Brew and now it can help your company to retain skilled employees.


By: Brandi Marcene

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