The costs to your organization when good employees resign are hard to quantify, but trust me, they are more serious than you are adding up. Retaining good employees, with the means that an employer can control, is critical during a time when skilled employees are becoming more difficult to find.
It's unfortunate, but good employees resign for reasons that an employer can't control. Employees' lives change and their circumstances may place them back in grad school or moving across the country.
Costs to Employers When Employees Resign
It's sad when good employees resign, because your organization has invested a lot in the employee in terms of training, attention, and commitment. Most of your investment is not measurable which is why losing a good employee is a serious blow to your organization.
When employees resign, you lose the working relationships that the employee has developed with coworkers, his or her contacts with customers, and the energy and dedication that the employee brought to the job.
You will need to invest additional untold hours in replacing the good employee when employees resign. And, during the recruitment process, your remaining employees will be stretched to cover the extra work, or the work won't happen until a new employee comes onboard.
What Causes Employees to Resign?
Of the reasons that employers can control, these are the top three reasons that employees resign.
- Something, anything is wrong in the employee's relationship with his or her supervisor. Employees resign to get rid of a bad boss. And the definition of a bad boss is all over the map and depends on what the employee needs from his or her boss.
- Employees resign when their compensation package is below market and they can get more money by changing jobs - the last figure I saw was an average 10% increase for going to a new employer.
- Employees resign when they don't feel special. The compensation system, the rewards and recognition passed out must favor your best employees - or you're not spending the money wisely. Nothing deflates the motivation of a good employee more than seeing poor performing employees equivalently rewarded.
Pay attention to these three factors so your best employees don't feel the need to resign. You also want to track why employees resign so that you can see patterns and deal with the issues before you lose your best employees. An employee resignation allows you to examine your retention processes and take steps to retain your best employees. Here's everything you need to do when employees resign.
Image Copyright Martin Novak
When Employees Resign
- How to Handle an Employee Resignation
- Parting Ways: When Employees Resign
- Sample Letter of Resignation
- To Pay or Not To Pay When Employees Resign?
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Good emloyees are very important for an organization. When they want to leave the organization then take exit interview to them. Discus with them why they want to leave. Find the reason and try to recover those causes which reason he or she want to leave.
Employees also resign when the job responsibilities are overstated and the actual work is a level or two below. Not having enough to do because of higher up delegation issues is causing some issues for co-workers. For example, 3 folks on my team have so much work they work nights and weekends, however, these same 3 folks refuse to delegate to others who have limited workloads. This has caused a situation where team members are wondering about lay-offs concerning workload.