Why You Should Always Know A Company’s Turnover Rate (Before Accepting A Job)
A company’s turnover rate is how often employees leave or get fired. Turnover rates vary by industry and field, so keep your intended field in mind. Regardless, it’s important to consider when considering a position. It’s a reflection on employee engagement, workplace happiness and culture. It’s important to understand why the turnover rate may be high. Start by asking your interviewer is the position is a backfill (replacing an employee who was terminated/left) or if it is a new position that was created due to expansion and scaling. It’s no shock that employees who are engaged stay longer and perform better than employees who are not. So what are some signs to look out for that would negatively impact a company’s turnover rate?
1. Lack Of Support
When employees are not managed effectively, they are bound to get frustrated. You’ll be working 40+ hours a week. The last thing you want is a boss who undervalues you or doesn’t support you. Similarly, too much support to the point of micromanagement can be detrimental. It is important to know yourself and what kind of management you respond well to when accepting an offer. Generally, a happy medium between micromanagement and complete neglect is ideal. It is important to have the support of your manager and coworkers in order to succeed as an individual and company.
2. Cultural Reasons
Every company has a different culture. If theirs clashes with your personality, your time there may be limited. If a company has a “work hard play hard” mentality and you don’t vibe with that, then you should not take the role. Company size is also a factor; know your preference. And if the people you work with are cliquey or the company does not promote from within your mood may be affected. There are a lot of other cultural aspects to consider (even down to the dress code!) when making a multiple year commitment.
3. Compensation/Benefits
If you aren’t aware of the industry standard for the position you take, you may realize a few months in that your company underpays. Some turnover rates are attributed to employees leaving companies because they are offered a higher paying job, and it really does happen! In addition, some benefits packages are better than others, and if the company you are interviewing at does not satisfy your needs your quality of life will be affected.
4. Poor Communication
It is important to understand how a company handles challenges and adversity. It has to gel with your personality or else you will end up getting fed up and bitter. In addition, if you are communicating with your boss and/or coworkers but feel they aren’t listening you will feel undervalued. This may cause you to either not work as hard, or start looking for other opportunities that will fulfill you more. In addition, if your boss has not communicated realistic expectations for you, you will be perpetually unhappy and stressed out when you cannot meet them.
5. Don’t Like Boss/Mission/CEO
If an employee doesn’t like their manager, the company’s mission/integrity, or the CEO they won’t stick around for long. It is important to believe in your company and the people you work with. Look on LinkedIn to see when people started with the company. If the company has been around forever and you’re interviewing for a backfill, yet everyone you talk to started less than a year ago, it might not be a great sign. Make sure to do your research to avoid being a victim of company turnover.
What have you noticed about your company’s turnover rate? Tell us in the comments!
