“Employees don’t leave companies – they leave bosses," the saying goes. Competing with commercial rivals starts with having an efficient workforce that is as productive as possible. This requires proper leadership and business management in order to reduce turnover rates and increase retention. If a high turnover rate is an issue, bosses need to take a look at not only their own actions, but also the actions of their managers as well to ensure that each share common company goals. Understanding how turnover rates affect businesses, and the leadership styles that contribute to turnover rates provides the opportunity to improve the efficiency of your workplace as a whole. Access leadership courses and communication workshops today on Learning.ly and start taking control of your business’ success.
Poor leadership can cause employee turnover, which ends up costing your small business time and money. The expense of recruiting and training employees can eat away at profits in a company. In addition, the lack of seasoned employees can diminish your production, customer service and efficiency. Examine whether your managers' leadership styles are negatively harming your business by encouraging employees to leave.
How Turnover Rates Affect Businesses
High turnover rates tend to hit small businesses harder than larger ones. This is a result of most employees being responsible for multiple roles within a small business, as there isn’t an abundance of staff members. As such, when valuable employees quit, production can be delayed, or worse, come to a standstill. This results in remaining employees becoming overwhelmed and burned out, as they now have to cover additional positions until someone new is hired. With that comes an increase in workplace stress, a decrease in work quality and productivity, and a significant impact on morale.
Main Reasons for Turnover
The biggest reason for turnover is certainly poor management. More specifically, there are many different styles of leadership that can actually contribute to higher turnover rates. It’s important to implement several feedback tools or performance reviews that allow you to address management concerns, and improve leadership altogether. Additionally, taking leadership courses available today on Learning.ly can ensure that all managers are working together to provide an efficient workforce that keeps employees happy and productive. Some of the common management styles that may be causing a high turnover rate include:
The Commanding Manager
Being overly stern can alienate employees. Commanding leadership styles often have unrealistic expectations of their employees, and are highly critical and intolerant of mistakes. Employees under this style of management generally feel intimidated and on edge, which increases workplace stress and can decrease productivity, and can certainly increase turnover rates. Furthermore, these kinds of managers often tend to blame the employees, as opposed to seeking a solution.
The Bragging Manager
Leaders that tend to be constantly voicing – and bragging about their smart decisions often transmit a sense of insecurity. When employees take note of a manager’s need to constantly be the best, they often lose respect for them, and as such, the manager loses authority. If you have a manager that is constantly praising themselves as opposed to the employees they’re managing, this could result in a turnover rate as the employees don’t feel like their efforts are recognized or appreciated.
The Angry Manager
Having a manager that is prone to having outbursts can quickly drive employees to seek employment elsewhere. This style of leadership causes employees to be fearful and insecure, which can lead to resentment and a lack in loyalty and commitment to the company. The job is often not worth the negativity employees feel when in a workplace operating by this kind of manager.
The Avoiding Manager
As a business, you want managers that are pro-active and ambitious to reach the same company goals that you have set out. Having managers that avoid conflict can significantly sacrifice your company’s success, as they tend to provide very little direction to the employees, for fear of confrontation. As a result, employees have to take on more than what they’re responsible for, as they’re constantly seeking solutions for the tasks that were provided with no guidelines. This can be costly and time-consuming for a business to fix if this style of leadership continues, as the problems will worsen if they aren’t addressed.
The Silent Manager
Managers that lack effective communication skills may leave important information out when delegating tasks to employees. This can result in costly and timely mistakes for the company, as the employees have to constantly guess what is being asked of them. This can create a sense of insecurity and an increase in frustration and workplace stress, which can contribute to a higher turnover rate.
If poor leadership is a large contributor to your turnover rate, there are many ways it can be improved. Provide your managers with leadership courses and communication workshops that provide examples of effective communication, all of which can be accessed online at Learning.ly. When employees quit, conduct exit interviews to find out their reasons for leaving the company, and remind your managers that abusive management techniques will not be tolerated.