Many types of organizations, including Financial Cooperatives, are experiencing fast turnover due to several reasons. The following are three (3) of the usual reasons why employees leave their employers and as an HR, you may have heard it during the exit interview:
Greener Pastures - When employees resigns and tell you that they are leaving due to greener pastures, what they mean is that they are transferring to a company who offers them higher salaries and better compensation packages. If this is the case, don't start changing your salary structures or don't start adding benefits. What you need to do is to first review if what you offer to your employees are still within the market value or still competitive on the same industries.
Usually, the competitors of financial cooperatives are banks and micro-finance. But in terms of employer, any other types of industry may be a competitor for specialized skills such as for the accountants and IT. Accountants with experiences are very scarce in out country. So what happens is that if you hired a new graduate, he/she will just spend a few months or years with you and then they get offered higher salary in another industry.
Another meaning for "Greener Pastures" may mean the career path or the promotable state within the organization. Young bloods, usually those ages falling within the Generation Y and Z are ambitious, aggressive and hopes that they'll immediately reach the peak of their career as soon as possible. If this would be the case, then you as an HR would have to look at the Career Path or plans for your employees. Does the cooperative or organization offers opportunities for growth, travel, or studies for your employees? Do you have adequate training plans for the development of your staff? Do you groom leaders or you immediately losses the very good and skilled employees and what is left are those who would not support changes or are grounded?
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| Photography by Rose Gob |
Studies - Aligned with the career path is that employees leave because they have professional plans for themselves and they don't see that the organization can actually provide them a venue for said growth. Many would say that they are resigning because they plan to continue with higher studies. This could be a good indicator that you were able to hire an employee who finds satisfaction on continuous development. The sad part though is that you don't have what it takes to keep these kind of employees. Revisit your employees development program. Do you have a very good performance management system that helps you monitor well the performance of your employees? Do you have a very good compensation and benefit package that motivates the employees to keep on performing at their best?
Leadership - Many books say that an employee resigns because of failed leadership and not because of the organization. It could be true because the leadership provides the direction of the organization. But we cannot sum it all to the kind of leadership. "Birds of the same feather flocks together" as the saying goes. So if your cooperatives are consists of owls or eagles, you cannot expect a penguin would survive in that kind of culture. What you can do is to check not only the leadership type that you have but also, check how you select people during recruitment. Do you have the right criteria and are you able to assess well the type of employees that would be working for you? Check what type of culture the cooperative has then match it with hires with the same values as that of the cooperative.
There are other creative excuses that you may have heard during an exit interviews. Do share with our readers and let us analyze how it can be resolved. If you have any questions, you may send me queries via e-mail or through the comment section of this blog.
