Is your organization dealing with an unprecedented level of employee turnover? If so, it’s not surprising. The Bureau of Labor Statistics reported that the turnover rate in 2021 was nearly 60%, with voluntary turnover affecting 25% of the workforce.
Employees want to find new career opportunities and experience changes in life. But turnover is costly and impacts your company’s bottom line severely. It also heavily affects team morale, so if you can prevent turnover, it’s worth the effort. Instilling a coaching program throughout the organization can help retain your best employees by allowing them to grow and experience new opportunities within your organization.
Here’s how to lessen employee turnover through team coaching.
What Is Turnover Costing your Team?
According to Gallup, U.S. businesses lose a trillion dollars every year as a result of voluntary turnover. Not a million. Not a billion. A trillion dollars!
Replacing an employee can cost up to twice that employee’s annual salary.
Here are some of the replacement costs:
- Sunk cost from training the former employee
- Information lost between employees
- Recruitment time and money put toward finding a replacement
- Time and money spent training the new employee
- Interrupted business operations
- Irritated clients or customers
- Lost revenue
The worst part about all of this is that turnover is, to a large degree, preventable. More than half of employees who leave their company voluntarily say they could have been persuaded to stick around if only management decision-makers had responded and acted appropriately, both to their leaving, as well as ahead of that point.
Why Are Your People Leaving?
So, if it’s entirely possible, how do you cut off the turnover trickle before it turns into a flood? It all starts with identifying why your people are leaving in the first place. Conduct “exit interviews” with departing employees to understand their motivations to leave.
There are a few consistent sources of employee turnover, such as:
- Low morale
- Poor engagement
- A lack of holistic wellness focus on the part of the employer
- Undue stress
- Poor mental health both in and outside the workplace
The list goes on.
Further data from Gallup indicates that nearly 20% of employees who voluntarily left their position over the last few years did so due to management behavior and the overall work environment. A work culture and office environment (as well as leadership) that promotes engagement, on the other hand, is much less likely to face turnover, with Gallup reporting, “In workplaces where engagement levels are high… three elements—recognition, progress discussions and the presence of a best friend at work add significant value, and turnover is much less likely.”
According to a report from Forbes, nearly all employees (96%) believe showing empathy is vital to employee retention. Management with clear emotional intelligence is highly valued among employees (though it’s important to note that this was only the case when the employees felt that the leadership was empathetic and emotionally intelligent; all too often, reports showed that management was too quick to overestimate its emotional intelligence).
As mentioned, stress, poor mental health, and burnout also wreak havoc on employee retention rates. The Forbes report showed that more than one-third of employees are “extremely” stressed and suffering physically and mentally because of it. Workplaces that implemented resources to promote stress management and resilience, however, saw teams that were not only more engaged, productive, and profitable, but also all-around healthier. In a similar vein, 89% of employees at organizations with wellness initiatives said they are likely to recommend their organization to others.
Team Coaching Can Improve Engagement, Mental Health, and Morale
When your employees feel better, they perform better and they’re more engaged. You can’t rely on employees to pursue a better stress level at work, or a higher level of engagement in the office, all on their own. Support from the top down is crucial. If you’re heading up corporate wellness for your organization, now’s the time to begin considering adding a coaching and workshop program to your employee offerings.
Expecting your managers to retain employees alone might not work. Delegate that support to a professional coach. Companies are getting creative with their corporate wellness benefits, and coaching is one of the most popular activities. Employees don’t want to feel “used” by their employer. They want their place of work to feel like a mutually beneficial relationship. Let them feel invested in and supported by a coach. Your employees want to feel understood, supported, and like they are growing with new skills. Forward-looking growth improves their trajectory and workplace satisfaction.
The Bottom Line
Arootah offers a unique line of individual and team coaching options to help you as you and your employees reach their highest potential. Our coaches will teach your employees to better manage stress and approach their careers in a healthy manner, so your organization not only benefits from lower health costs and fewer sick days but also reduced turnover.
Think about it. What if your team was more goal-driven, challenge-oriented, and open-minded? Arootah’s coaching programs can help your team learn how to best work together, feel empowered within the workplace, and enhance their careers—and your organization, as a result. Our coaching programs are ideal for employees at all levels, from senior executives to entry-level professionals. We have a solution for everyone. While turnover may be unavoidable, instilling a culture of coaching throughout the organization helps you retain top talent by allowing them to grow and experience new opportunities within your organization.
Want to learn more? Speak with a member of our coaching team today to start creating a coaching program that best fits your organization’s needs!