When a valuable employee quits a company, the boss shouldn’t expect a straight answer when the employee is asked why, says Angela Greene.
“If asked by a direct supervisor, departing employees will default to money as the excuse,” said Greene, president and founder of Victoria-based Elevate Retention, which specializes in helping companies retain employees.
“For example, it’s easy to say, ‘I would love to stay but Company X has made an offer I can’t refuse’ rather than, ‘This company stinks,’ or ‘I am leaving because of you.’”
Studies have shown that 80% of employers believe most people quit because of money, but employee exit surveys reveal that only 20% of those leaving a job did so because of their pay level, Greene said. “About 80% of the time, they leave due to ‘other’ reasons,” she said. “This may be things such as lack of appreciation or opportunities, poor morale or how the employee is treated by supervisors or co-workers.”
This gap in perception is not that surprising, given that fewer than a third of employees will initiate a discussion with their boss about job satisfaction, she said.
There are deep bottom-line dangers in staff turnover, however. It costs as much as six months’ salary to replace an hourly employee and up to 18 months in salary to replace a mid-level employee, Greene noted. In the case of one of Greene’s clients, the sudden departure of a “super star” required the company to eventually hire two full-time and one part-time employees to replace him. Also, customers often become loyal to a particular employee and, when that employee leaves for a competitor, the customer may follow suit.
Lack of appreciation, Greene said, ranks among the main reasons an employee quits.
”It is a basic human need to have personal recognition,” she said, and the recognition doesn’t have to mean a raise in pay or making a flashy announcement. Often, a sincere “job well done” thanks from a superior can make an employee feel appreciated.
“The key is to be genuine and specific in the praise,” Greene said. More flexible work hours, vacation time, work-life balance and tuition reimbursements also rank higher today among younger employees.
Watch for the signs
There are clear warning signals that employers should watch for if they do not want to lose a key employee. These may include increased abstenteeism, a negative attitude, less interest in completing projects or a failure to offer feedback when asked.
“If a company believes they are about to lose a star, it is best sit down with the employee and ask point blank, ‘What would it take to make you consider staying with us?’” she said.
A top person leaving can also have a cascade effect on the entire staff, eroding morale and perhaps signalling others to leave the company, as well.
Greene said exit interviews with departing employees can provide candid and constructive information for employers, but an unbiased individual, not the direct supervisor, should conduct the discussion. In cases where the split wasn’t amicable, it is sometimes best to wait a few weeks to allow the individual to reflect and become more objective, she added.
Employers today face more of a challenge in retention because, generally, people don’t stay at their jobs as long as they used to. “My father worked for 35 years at the same company,” said Greene, a self-described Generation Xer. “You just don’t see that as much today. It is not uncommon for someone to have five or six careers in their work life.”
Anna Grolle, director of HR and corporate operations at Cactus Restaurants Ltd., said flexible hours are a key method of retaining young workers. “At Cactus Club, many of our employees are students and it’s extremely important for them to have flexible work hours to accommodate their studies and schooling,” she said.
This year Cactus Club, which has more than 2,300 employees, was named as one of the Canada’s Top Employers for Young People, as chosen by the editors of Canada’s Top Employers, and, recently, as Best Restaurant To Work For in the Georgia Straight’s annual Best of Vancouver issue. Grolle added that Cactus Club also offers “great training and support” to those employees who want a career in the industry.
Employers, however, are right to consider money a primary factor. Research shows that if the salary is not competitive, the chance of an employee, of any age, leaving is significantly higher. •
