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On Employee Retention

I can’t seem to keep employees for longer than a few months. What am I doing wrong?

First, the high turnover may not be the result of something that you’re directly doing (right or wrong).  There are three primary causes of high turnover that exist in businesses of all types – two of which can’t always be controlled.

  1. If the job duties are highly repetitive, physically arduous, or mentally unstimulating.
  2. If the physical work environment is unpleasant.
  3. If the organizational culture is negative.

These 3 elements impact employee retention even more than pay and benefits.  While an owner is absolutely responsible for the culture, there’s not much she can do about the first two if that’s the nature of her business. In that case, the solution may lie in having a robust and effective replacement strategy to minimize the disruption caused by turnover, rather than trying to eliminate it.