Friday, April 25, 2008 - 2:55 PM EDT
Survey: Poor leaders lead to high turnover
Triangle Business Journal - by Tierney Plumb
For companies wanting to stop turnover, a recent survey suggests that the source lies at the top.
Both ineffective leadership and a lack of opportunities or challenges within the organization are reasons behind employees throwing in the towel, according to Philadelphia-based Right Management's survey of more than 1,000 respondents.
Thirty percent say they left their jobs to seek new challenges or opportunities that were lacking with their previous employers.
In addition, 25 percent said they left because of ineffective leadership; 22 percent cited poor relationships with their managers; and 21 percent said their contributions were not valued.
"We've identified four critical elements to retaining top talent: having a voice in the business, receiving regular and substantive feedback, effective leadership, and career development opportunities," said Douglas Matthews, president and chief operating officer of Right Management.
Turnover can cost a company more than just a seasoned employee: research found that it costs nearly three times an employee's salary to replace someone, which includes recruitment, training, severance, lost productivity, and lost opportunities.
"Poor management results in lower morale, decreased productivity, and employees who are disengaged from their jobs," says Matthews.
Only 43 percent of U.S. employees are fully engaged in their jobs, meaning more than half are not, according to Right Management's research.
"There is a direct correlation between the level of employee engagement and important business benchmarks such as higher customer retention, lower employee turnover, and increased sales and operating results," says Matthews.
Right Management is a wholly owned subsidiary of Manpower Inc.
Hmmm. . . I wonder if this carries over to families and the church? Does "poor" parents make a children "quit" families? Do "poor" pastors make for high church turnover. Food for thought. . .