As per recent reports, the employee attrition rate or churn rate is on an extreme rise in the corporate sector across the globe. This means that employees are voluntarily leaving their companies due to professional as well as personal reasons. They are hunting for the best office spaces where they can get ample learning opportunities while working in a lively environment.
Monetary stability is one of the reasons behind this churn rate but the majority belongs to individuals who are on a hunt for professional office spaces. Many global leaders and large enterprises are well aware of this fact, which is why business organizations are leasing office spaces for lease.
Neetish Sarda is the founder of Smartworks which is India’s largest platform for managed and flexible space offices. He predicted the trend earlier and decided to revamp the means of office spaces by commencing Smartworks in the year of 2016. Neetish Sharda’s Smartworks is having PAN India presence and we are catering to large enterprises and MNCs by offering fully-furnished office spaces across 11 cities.
He acknowledged the fact and made a vision to fulfill the expectations of the employers as well as their experienced, young, and educated workforce. The corporate sector is switching from traditional offices to managed/shared/flexi or professional office spaces to minimize the employee attrition rate. In this blog, we will try to highlight the key reasons why employees are leaving their companies.
Top 9 Reasons for High Employee Turnover
Also known as the employee turnover rate, the attrition rate in India as well as in other countries is increasing rapidly. Employee retention and satisfaction are indeed the major elements of concern for business enterprises to grow in this competitive era. The top 10 reasons for employee turnover in the corporate sector are as follows:
- Diversity and Inclusion in the Workplace
- Work Environment and Culture
- Managerial Hierarchy
- Lack of Flexibility
- Inequality in the Workplace
- Frequent Change in Work Profiles and KRA’s
- Excessive Work-Load
- Less Learning Opportunities
- Absence of Camaraderie
1. Diversity and Inclusion in the Workplace:
Diversity and Inclusion are one of the major reasons why employees are switching companies. There are many companies that do not follow and believe in diversity which ultimately restricts people from different cultures, sex, religion, and beliefs to work together in a professional work environment. Even if some companies have implemented the concept of diversity, they lack inclusion.
The term inclusion means that employees accept people from diverse backgrounds by showing them equal respect in the workplace. Sadly, there a very few companies that have implemented diversity and inclusion in the workplace.
2. Work Environment and Culture:
Office spaces are indeed a second home to the working-class population. It is said that they spend a significant proportion daily in professional office spaces for a long time. If a company is not having a satisfying work culture, then employees leave the company within a short period.
It has become significant for business enterprises to revamp the work environment and culture. The rise in attrition rate has forced the companies to rethink, which is why large and medium enterprises are acquiring office space for lease.
3. Managerial Hierarchy in Office Spaces:
A sound and effective managerial hierarchy is a must for any business organization to attract and retain the best talents. An ineffective managerial hierarchy may cause the workforce several problems like direct orders from top-level management, instability of workflow, and many more.
Post-Covid, businesses have understood that employees would leave voluntarily at any time if things aren’t getting better. With this acknowledgment, companies are acquiring professional or managed office spaces to revamp the whole mechanisms and fulfill the workforce’s expectations.
4. Lack of Flexibility:
Flexibility is one of the major reasons behind the high attrition rate in the corporate sector. It is quite clear that a workplace with a lack of diversity and inclusion and inappropriate work culture cannot promote flexibility in the workplace. There are many companies that are changing from daily or traditional work structures to hybrid workspace solutions just to ensure flexibility in the workplace.
5. Inequality at the Workplace:
Another major reason behind the high employee turnover rate is inequality. A company where employees are not heard, seen, and considered, tends to have an unequal work environment. Due to inequality, employees face a direct impact on their promotion, learning opportunities, value, and recognition. At the moment, it is imperative for businesses to create a highly flexible and employee-centered culture by shifting to professional office spaces.
6. Frequent Change in Work Profiles and KRA’s:
A reason that cannot be ignored at any point in time is the frequent change in employees’ work profiles and defined KRAs. Some companies believe in providing voluntary learning opportunities whereas others enforce this on their workforce. This creates a negative impact on the psyche of the workforce which again leads them to leave the company and contribute to a high churn rate.
7. Excessive Work-Load:
Work-load is one of the crucial and most influencing factors that creates a direct effect on employee experience and work-life balance. Global leaders are well-aware of this factor and that’s why they hunt for office space for MNCs for lease. Excessive workload results in inefficient performance and output by the workforce and it also acts as a barrier between business and growth.
8. Less Learning Opportunities:
A company that doesn’t promote a learning and development culture in the workplace cannot attract and retain the workforce. Not every employee is seeking financial growth, some are career-centric that are desperate to learn different things. This is also a crucial factor resulting in businesses acquiring professional office spaces. These office offices are packed with technology and are designed to enhance the employee experience at the workplace.
9. Absence of Camaraderie:
Social ties are prominent in the office environment to ensure a sense of community existence and belongingness at the workplace. Employees reject new job offers if they have friends at their current workplace, as proved by a survey analysis from the Society of Human Resource Management.
During the times of remote working, companies ensured that a virtual team is made to improve employee engagement and productivity by conducting meetings for formal and informal discussions. This means that a company that doesn’t promote a social environment, is also witnessing a high attrition rate.
Neetish Sarda believes that an ideal business organization is a place where people from different backgrounds, religions, and beliefs are welcomed and treated equally. With his vision and leadership, Smartworks is capable of catering to large business enterprises and MNCs to operate in highly managed tech-enabled professional office spaces.