Keeping your top employees should be a top priority for all organizations. As software recruiters in Toronto, we know how expensive it can be for companies to have a revolving door of talent. Retaining talent is not only better on the budget, but it also helps to strengthen your company in many ways.
Many that point to the causes of retention issues commonly cite things like work-life balance, compensation, or lack of opportunity. However, there is another significantly overlooked factor that is driving down employee retention rates – Feedback.
Study Finds That Poor Feedback Causes People To Quit
While it may not be the first thing that comes to mind when talking about employee retention, poor feedback is an overlooked factor that leads to people leaving, according to a Textio study.
The study analyzed 2 years of performance reviews for 13,000 workers. They found proof that low-quality feedback is driving employee retention down. Here’s what they found:
- People receiving low-quality feedback are 63% more likely to leave.
- 17% of people specifically name insufficient feedback as the top reason they are considering other jobs.
- Only 22% of people who get high-quality performance feedback plan to leave, while 40% who get low-quality performance feedback plan to leave.
- Not all feedback is good feedback – 50% received at least some feedback that was not actionable.
Demographics also play a role in how much feedback people receive in the workplace. The study found:
- 83% of men said they understand what is expected of them to get a promotion compared to only 71% of women, non-binary, and transgender people.
- Only 54% of Asian people said they understand what’s required to get a promotion.
- Black employees get 26% more unactionable feedback than non-Black employees.
Other Common Factors That Are Affecting Your Ability To Retain Top Employees
In addition to a lack of feedback, many other similar or related factors could be hurting your ability to retain employees. Here’s a list:
- Lack of Recognition and Appreciation: Similar to feedback, employees who feel their contributions are not acknowledged or appreciated may become disengaged and seek recognition elsewhere.
- Ineffective Leadership: Incompetent or unsupportive leadership can lead to a toxic work environment, reducing employee motivation to stay.
- Inadequate Training and Development: Insufficient training and development opportunities can hinder employee growth and make them feel undervalued.
- Unaddressed Conflicts and Issues: A lack of conflict resolution and problem-solving within the organization can lead to unresolved issues that drive employees to leave.
- Micromanagement: On the other end of the spectrum, excessive micromanagement can undermine employees’ sense of autonomy and lead to frustration and decreased job satisfaction.
- Inadequate Communication: Poor communication within the organization, including a lack of transparency about decisions and changes, can erode trust and loyalty.