Causes of High Labour Turnover

Labour turnover is the rate at which employees leave a company. It is measured as a percentage of the total workforce. A high labour turnover can be a sign of problems within a business, such as low morale, poor management, or lack of growth opportunities.

Factors Contributing to High Labour Turnover

There are many factors that can contribute to high labour turnover. Some of the most common include:

Changes in Strategy

When a business undergoes a major change in strategy, such as a merger, acquisition, or downsizing, it can lead to uncertainty and job insecurity among employees. As a result, some employees may choose to leave the company voluntarily, while others may be laid off or made redundant. For example, if a company decides to close a factory, the employees who work at that factory will lose their jobs. This can lead to a significant increase in labour turnover.

Issues with Pay

Pay is a major factor in employee satisfaction. If employees feel that they are not being paid a fair wage, or if they believe that they can earn more money elsewhere, they are more likely to leave the company. For instance, a study by Glassdoor found that 45% of employees who left their job cited pay as a major reason for leaving.

Conflicts with Management

A negative work environment, characterized by conflicts with management or poor communication, can also contribute to high employee turnover. For example, if employees feel that they are not being listened to, or if they feel that their concerns are not being addressed, they are more likely to become dissatisfied with their jobs and seek employment elsewhere.

Poor Motivation and Job Dissatisfaction

Employees who are not satisfied with their jobs are more likely to leave. Job dissatisfaction can be caused by a variety of factors, including:

• Lack of growth opportunities
• Lack of recognition
• Poor working conditions
• Unrealistic workloads

For example, a study by the Society for Human Resource Management found that 61% of employees who left their job were dissatisfied with their job duties.

Lack of Training and Development Opportunities

Employees want to feel like they are learning and growing in their careers. If they feel like they are stuck in a dead-end job, or if they feel like they are not being given the opportunity to develop their skills, they are more likely to leave. For instance, a study by LinkedIn found that 94% of employees would stay at a company longer if it invested in their career development.

Poor Working Conditions

Employees are more likely to leave a company if they have to work in poor conditions. This could include anything from a lack of basic amenities to a dangerous or unhealthy work environment. For example, a study by the Occupational Safety and Health Administration found that companies with high rates of workplace injuries and illnesses also had high rates of employee turnover.

Personal Reasons

Finally, it is important to note that there are also some personal reasons why employees may leave a company, such as illness, accident, death, retirement, or family relocation.

Conclusion

High labour turnover can be costly for businesses, as it can lead to increased recruitment and training costs, as well as lost productivity. Addressing the underlying causes of high labour turnover is crucial for businesses to retain employees and create a positive and productive work environment. By investing in employee well-being, offering competitive compensation packages, and providing opportunities for growth and development, businesses can improve employee satisfaction and reduce labour turnover.