Bad management can lead to higher employee turnover

Employee turnover can have a number of negative effects on an organization. It's costly because companies have to use time and resources to recruit new employees. It hurts productivity because new employees will take time to get up to speed, which again impacts company finances. Ultimately, businesses should make mitigating turnover a high priority, and the best way to do that is to get to the root of the issue.

So what causes high employee turnover? According to one study, bad management. Research from the O.C. Tanner Institute found that management is a direct influencer on employee morale. In fact, 94.4 percent of people with high morale at work say that their managers recognize the work they do and reward them appropriately. If strong management has such a heavy influence on employee morale, the study suggests that poor management has a negative impact on morale, which leads to disinterested workers and turnover.

O.C. Tanner's white paper went into further detail, examining the importance of quality management, particularly in an uncertain economic climate.

"As organizations struggle to find a way to cope in a global economic slowdown, the simple act of a leader recognizing a person in a meaningful and memorable way is the missing accelerator that can transform the speed and quality of performance," the paper says. "But it must be purpose-based recognition. And, it tops the list of things employees say they want most from their employers. When employees know their strengths and potential will be praised and recognized, they are significantly more apt to produce value."

Working with an executive and senior management search firm is a wise investment given the benefits strong management can have on an organization. While bad management can increase the risk of employee turnover, good management can inspire better performance and increase productivity. Working with a search firm will help you find the best management prospects to fill the open positions at your organization.