Employees often think they are the only ones who notice their company’s toxic environment. It is often difficult to broach the subject when they choose to stay, especially if others they respect stay too. Sometimes, the toxic behavior gets rationalized or ignored. But most of the time, it results in high turnover.
I’ve been intentionally doing a lot of reading lately on this topic. There seems to be a common observation in the past. When people do not have job satisfaction, they start to complain. Next, they accept their environment or quit. It’s that simple. Either of these scenarios isn’t great for company culture or the bottom line. This is what companies now need to consider. Younger professionals entering the workforce won’t do as much complaining or accepting. Millennials are much more likely to walk out the door and never look back.
I recently observed a company that appeared to really be going places. At a closer look though, there were significant problems that became glaringly dangerous to the overall health and future success of the business.
Never before had I witnessed such high turnover. It wasn’t just turnover either, I was astonished by the speed in which this company was promoting its people. What was even more surprising was as fast as they got promoted, they were then let go. What does over-promoting and huge turnover say? It says a lot actually.
The cost of turnover is exorbitant. In fact, the cost of a company’s bad hire is approximately 30% of the employees first years earning. It doesn’t matter if it’s the hiring manager’s mistake or the employee’s mistake. The cost is the same and companies who don’t understand what they are looking for, are the first to make this mistake. The second are the companies who believe that employees are expendable and have no respect for their company money or its people. It goes back to a simple, but common mistake.
When a company cannot admit fault, is adamant on doing things ‘the way they have always been done’ and simply cannot change, it will always result in overcompensating. It’s not sustainable though. The long-term solution is to intentionally change your company culture. People need to be valued and when valued, they will give all they’ve got!
OolaCorporate Training will not only help you manage your company culture to produce solid and measurable results, it will help you retain the talent you have invested in!