In the book The 7 Hidden Reasons Employees Leave by Leigh Branham published by the American Management Association, NY, 2012, Mr. Branham outlines the reasons why people leave. based on what over 20,000 people who were asked by their companies said. In terms of management, by having better management or good management which translate into low turnover, no matter the industry and sector, the company saves money. If it has a high turnover, it wastes both money and people.

Reason One   The Job or Workplace was not as Expected

When a person is hired to do a job, they will be expectations between what the employee expects to receive and what the organization expects to give as well as what the employee expects to give and what the organization expects to receive.

At the most basic level, a new employee enters at an entry level and expects to advance within a year; after a year is up did they advance yes or no and why? If yes there is a good match, if no then there is a question – was there no opportunity or was the person never going to advance? Unmet expectations is the main reason 4% of employees walk off the first day; the number one reason 50% quit in the first 6 months; and a key factor in the failure rate of 40% of new executives to last more than 18 months in their new position. The cost is considered one times annual salary.

This is a preventable solution by management and evolves the trust segment.

Possible solutions:

1. Conduct realistic job previews with every job candidate – outline the company’s expectations and ask do you fit?
2. Hire from temp agencies or consultants – they will know what to expect
3. Increase hiring from employee referrals
4. Create a realistic job description
5. Allow co workers to participate in the interviewing process
6. Increase hiring from within
7. Conduct the interview or selection process that provides a sample of on-the-job experiences
8. Have new hires complete post-hire questionnaires

Linking to dividend paying stocks, the first part of the new hire is establishing trust with the company. The trust goes between employees and between paying customers, as investors we expect the company will be forthright and ensuring the accounts are accurate and we do not have to take them with a grain of a salt. The expectations of the analyst are meant.

There are more questions than answers, till the next time – to raising questions.