Employee turnover is becoming commonplace: what can employers do?
Employee turnover is increasingly becoming one of the main challenges for Lithuanian employers. Although this problem existed in the past, it has become more acute in recent years. According to Survey of employers by the Employment Service, as many as 41% of employers admit that staff turnover in their company has increased. In this article, we look at the main causes of employee turnover and what employers are doing to reduce it.
Staff turnover: a growing problem
The survey reveals that twice as many companies expect to face HR challenges this year than three or four years ago - 12.3%, up from 6% a year ago.This reflects the growing concern about employee turnover. This problem is particularly acute in administrative and service activities, accommodation and food services, transport and public administration. Staff turnover not only means additional costs for companies, but also loss of knowledge, lower productivity, longer onboarding times and poorer customer experience. Constant turnover can also affect the motivation of the remaining team.
Reasons why employees leave their jobs
Inadequate pay is the biggest reason for staff turnover, cited by 29% of employers. Retirement was the second most important reason (23.5%). Excessive workload (12.7%), lack of career opportunities (11.2%), poor relations within the team or with the manager, and lack of work/leisure balance are also common. Interestingly, as many as 39% of employers are unable to pinpoint why employees leave their company. This signals communication gaps and a lack of internal analysis - which hinders the timely detection of problems and the prevention of turnover.
What measures are employers taking to reduce staff turnover?
Employers use a variety of retention strategies to reduce staff turnover. Financial bonuses are the most common choice, cited by 56.6% of respondents. Flexible work schedules (45.4%) and team building events (31.6%) are also widely used.
Around a quarter of employers invest in training and emotional health. Around one in six employers offer teleworking opportunities or extra vacation days, which are becoming increasingly important tools in today's labour market.
Applying measures in different sectors:
• Financial bonuses most commonly used in the manufacturing, transport, construction, agriculture, real estate, finance and energy sectors.
• Learning opportunities and telework most common in public administration, the education sector and information and communication.
• Team building, Mentoring and health insurance are most often used by companies seeking to retain talented staff or attract young professionals.
Staff turnover: what's worth rethinking in your organisation?
To reduce staff turnover, employers need to consistently assess staff needs, encourage open communication, and invest in working conditions and development. A clear career vision, respect, flexibility and trust are the cornerstones of reducing inter-company migration. However, these measures are not sufficient in all cases. If employee turnover is still common in your company and jobs are not being filled quickly enough, we can help. We offer staff hiring services, that allow you to fill staff gaps quickly and flexibly for both short- and long-term projects - depending on your business needs.
Article based on Survey of employers by the Employment Service, which took place in November and December 2024. 2,600 enterprises and establishments took part in the survey.
