Employers who think their people leave for more money:   89%

Employees who actually do leave for more money: 12%

What a disconnect!

That’s the results of 19,700 interviews completed by the Saratoga Institute. Maybe it is easier for managers to think that money is the real issue, rather than hear that there are things that need to be fixed. But, the truth is, there are things that can be done to keep employees happy and productive, and on the job.

The ten most frequently mentioned issues that employees say companies do poorly are:

1. Poor management—uncaring and unprofessional managers; overworking staff; no respect, not listening, putting people in wrong jobs; speed over quality; poor manager selection processes.

2. Lack of career growth and advancement opportunities: no perceivable career paths; not posting job openings or filling from within; favoritism or unfair promotions.

3. Poor communication: problems communicating top-down and between departments; after mergers; between facilities.

4. Pay: paid under-market or less than contributions warrant; pay inequities; slow raises; favoritism for bonuses/raises; ineffective appraisals.

5. Lack of recognition: that says it all.

6. Poor senior leadership: not listening, asking, or investing in employees; unresponsiveness and isolation; mixed messages.

7. Lack of training: nonexistent or superficial training; nothing for new hires, managers, or to move up.

8. Excessive workload: doing more with less; sacrificing quality and customer service for numbers.

9. Lack of tools and resources: insufficient, malfunctioning, outdated, equipment/supplies; overwork without relief.

10. Lack of teamwork—poor coworker cooperation/commitment; lack of interdepartmental coordination.

The result is an increasing number of American workers are disengaged from their jobs.

Disengaged employees aren’t born that way. They’re created by ineffective, badly trained managers and lack of strong human resource management within corporations. It’s costing businesses a fortune in lost productivity and revenue. Much of the blame is being placed on the shoulders of ineffectual human resources management and managers.
Many managers themselves do not know what it takes to succeed in a particular role nor do they have an incentive to care. More often than not, the focus and emphasis of the H/R department is “putting out fires.”

For the average manager, the bulk of a workday is spent working with employees who are negative, completely disengaged and should be terminated because they shouldn’t have been hired in the first place.
Instead of matching the right employee to the right position for long-term success, most companies and H/R departments put the emphasis on simply filling the position as quickly as possible. As a result, American businesses are losing money as fast as they’re losing employees. Each staff turnover cuts into the bottom line.

The statistics on workforce engagement are shocking. The Gallup Management Journal’s semi-annual Employee Engagement Index reports that 54% of employees are not engaged, and 17% are actively disengaged at work and only 29% are actively engaged.

What does this mean to American businesses?

The impact of employee disengagement is a bottom line issue. Gallup statistics show that unhappy workers cost the American business economy up to $350 billion annually in lost productivity!

In today’s aggressive business environment remaining competitive is “top of mind” for most executives. To remain competitive, you have to hire truly talented people and then you have to keep them. Turnover is not only costly in terms of replacement expense; it’s not productive, and it’s demoralizing to other team members when they see good people leaving the organization.

In today’s aggressive business environment remaining competitive is “top of mind” for most executives. To remain competitive, you have to hire truly talented people and then you have to keep them. Turnover is not only costly in terms of replacement expense; it’s not productive, and it’s demoralizing to other team members when they see good people leaving the organization.