The Causes of Employee Turnover

Document Sample
The Causes of Employee Turnover Powered By Docstoc
					The Causes of Employee Turnover
The most common cause of employee turnover is probably not what you
Many different reasons have been given for employee turnover: personality
issues, an un-challenging work environment, insufficient employee pay and
benefits, poor management, work stress and more. Yes, these issues can
lead to turnover, but you'll rarely find the most important one
identified: no or poor employee training.
No or poor employee training has more organizational symptoms than you
could imagine, and they are all costing you a lot of money.
Your employee turnover rate is directly affected by your training. Why is
that? Well, according to a study done by the ASTD in 2003, 41% of
employees at companies with poor training planned on leaving within a
year vs. 12% planned departures at companies with excellent training.
But why does employee training have such a significant effect on turnover
rates? Well, bad training leaves an employee with inadequate knowledge
and skills to do the job. He feels uncertain and confused. Management
slams him for his incompetence. He'll either work it out as he goes or he
won't, and he'll give up.
This is particularly true with traditionally high-turnover jobs such as
sales and customer service. Second-rate employee training in these areas
will blow your human error and turnover costs out the roof.
This has been conclusively proven through countless studies. How much
money do fumbling salespeople and customer service representatives cost
you? You have to pay them for their time and then you suffer from their
mistakes-lost sales, wasted opportunities, unnecessary escalations, lost
customers and so on.
Simply having "employee training" Is not enough. You need to have
employee training that works, and unfortunately most training techniques
don't work.
This statement might seem arrogant, but it's true. We have worked with
small businesses that have one person trying to assemble training
programs and global corporations with an entire team of training
researchers and managers, and the problem has always been identical:
their training falls short of the expectations. Simply put, it doesn't
What does that mean, though? The programs "don't work." It's very simple.
They're slow, they don't teach all the essential data, they don't result
in 100% proficiency and they aren't generally liked by the staff. What
they do result in is a work force that is confused and unstable, that
needs a lot of on-the-job training and that makes a lot of
mistakes...factors that waste substantial amounts of money.
The real cost of poor or no employee training-the cost of incompetence,
inefficiency and human error-is disturbing.
You aren't alone in your training and employee retention woes. To be
honest, the employee training industry is full of costly, impracticable
"solutions" that give little to no ROI.
To learn more, visit our web site:
Sean Clouden