Sometimes, the most logical explanation for employees to move on is because they don't see opportunities for advancement in their present situations. It's probably inevitable that this will occur from time to time at every firm, and though regrettable from management's point of view, it's a situation that most reasonable people can understand.

But the quest for advancement isn't the only reason people jump ship. Many times, the reasons they leave are due to less weighty frustrations that can be overlooked by employers. The Society for Human Resource Management (SHRM) has published numerous articles and white papers that explore this topic in detail.

According to SHRM and others who have looked into the reasons for high turnover, here are some major frustrations that prompt people to seek new employment:

Poor communication with supervisors. Sometimes employees leave a firm they otherwise like and respect due to difficulty with their boss. It's a rare firm that provides management training to people promoted to positions of responsibility, and that can cause problems when new managers are not prepared to lead their charges. While sometimes employees and managers fail to mesh because of personality differences, a common gripe by workers is that managers don't provide adequate feedback about their performance or about their contribution to firm goals. These situations can be remedied with some training and the establishment of standards for employee performance and evaluation.

Lack of trust. With employee bonuses and opportunities for advancement dependent upon the firm's success as a whole, withholding financial results from the rank and file can cause mistrust. This type of mistrust spurs some employees to look elsewhere for their livelihood. We recommend open book management so that all employees understand the firm's status, and its short and long-range goals.

Lack of employee empowerment. "Empowerment" is one of those murky HR terms that sounds good in principle, but can be difficult to translate into reality. What does this feel-good phrase actually mean anyway? In the broadest sense, it means that some important decisions can be made by, or at least influenced by, employees below the upper management level. Many firms pay lip service to this concept but too often end up resorting to micromanaging most areas of the firm. Of course, upper management must set the direction of the firm and approve all major initiatives, but most employees want to have their opinions at least heard and considered. It's best to foster an atmosphere where employees are eager to offer suggestions for improving processes, entering new markets, acquiring new tools and technologies, and other matters important to firm success.

Slow decision-making. A common employee complaint at many companies in every industry is the perception that their hands are tied until management makes a decision. And too often, especially in large, bureaucratic organizations, getting the final go-ahead to pursue a meaningful initiative takes too long. For highly motivated employees, this can be enormously frustrating. While some top managers have difficulty sharing control of decision-making with their lieutenants, as a firm grows, so does the need for sharing some decision-making. This isn't easy to do for many executives, but firms that fail to come to grips with this issue are almost sure to lose some valuable employees because of it.

The little things. Have you skimped on office equipment repairs and upgrades for several years? Are employees struggling with out-of-date software to do their daily work? Do managers refuse reasonable requests by employees for time off to attend to personal matters? These are the kinds of issues that employees seldom complain about to upper management but often contribute to their desire to look for another place of employment. These relatively small matters can add up to resentment of management.

Conclusion. No workplace can possibly satisfy all workers all of the time. Reasonable employees don't expect perfection from management, but they do evaluate how firms handle the above issues. Chances are that if your firm has higher than average turnover, one or more of these areas are at least partly to blame. Making serious efforts to remedy these problems can go a long way towards reducing turnover.

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On The Move

Colvin T. Matheson, CFA, former principal-in-charge of ZweigWhite's Financial Advisory Services group has announced the formation of
Matheson Financial Advisors, Inc. Headquartered in Arlington, VA, the firm provides corporate financial advisory services to growing businesses, including a specialization with the A/E/C and environmental consulting industry. For more information about Matheson Advisors, contact Colvin Matheson directly at (703) 517-2540 or cmatheson@mathesonadvisors.com