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What's causing your employees to leave? Check out these top reasons and solutions so you can retain your staff.
Recruiting, hiring and training employees takes time, effort and money. The longer an employee is with your company, the better they perform their job, making them even more difficult to replace. So, while it is essential for managers to be happy with their employees, it is equally important for employees to be satisfied with their company and job.
If your business is experiencing high employee turnover rates, it is essential to understand why and learn how to mitigate the problem. We’ve compiled the top reasons employees quit and how to get ahead of these issues in your workplace so you can retain your staff.
Employees quit for many reasons, including in-office personnel problems and out-of-office personal strife. Here are some typical scenarios that drive staff resignations.
Many employees expect flexible schedules today, and some may even view 9-to-5 work as obsolete. In fact, according to the Pew Research Center, 35 percent of employees whose jobs can be done remotely work full time from home, while 41 percent take advantage of remote work at least part of the time. The majority of this group works remotely at least three days a week.
Employees may not want to be in the office daily because working from home and hybrid work arrangements can be less stressful and less expensive than daily commutes and long, in-office workdays. According to a 2024 Resume Builder survey, 40 percent of in-person workers said they would prefer a hybrid or fully remote position. If a company requires workers to be in the office five days a week, some will become dissatisfied and seek a more flexible work arrangement with another employer.
How to prevent employees from quitting because of in-office requirements: If it’s possible for your business and industry, consider proactively offering more lenient work schedules and flextime arrangements. Without strict in-office requirements, workers are more likely to stay with your organization.
According to a 2023 Harris Poll survey on toxic boss experiences, 66 percent of employees with toxic bosses plan to quit as soon as it’s economically feasible. Employees with bad bosses deal with numerous indignities and issues, including weekend anxiety about returning to work (73 percent) and forced weekend work (53 percent).
Bad bosses come in numerous forms. They may micromanage their teams, act unprofessionally, discriminate, demand too much, act inappropriately, communicate poorly, be disorganized and much more. They poison the company culture and cause excellent employees to look elsewhere.
How to prevent employees from quitting because of bad bosses: Leadership teams must identify and stop managers’ toxic behavior. Consider conducting surveys to get honest feedback and learn what employees want from their leaders. Proactively work to promote a positive and strong company culture with an emphasis on respecting and nurturing employees.
According to Gallup research, employee engagement is essential to achieving business success, boosting productivity, improving retention and lowering absenteeism. However, additional Gallup data reveals that only 33 percent of U.S. employees are actually engaged in their work. This disconnect means that numerous businesses are at risk of losing employees — and profits — due to a lack of engagement.
How to prevent employees from quitting because of disengagement: Work proactively to improve employee engagement by encouraging open team communication, enacting employee health and well-being measures, and recognizing and rewarding employees’ outstanding work.
No one wants their performance to go unnoticed, especially if they’re putting in extra hours or working harder than other employees. However, in a 2023 Workhuman survey, over half of employees reported feeling only somewhat valued (46.4 percent) or not valued at all (10.7 percent) by their organization.
When workers feel demoralized by a lack of appreciation, they’ll eventually reach a breaking point and seek employment elsewhere — particularly if a lack of appreciation is coupled with an increasingly overwhelming workload.
How to prevent employees from quitting because they feel undervalued: When employees feel underappreciated, it’s time to set up a formal recognition program that includes rewards and public shout-outs for high-level work. You should also have managers provide frequent informal feedback so employees feel seen. Of course, a competitive salary and bonuses can also go a long way toward helping employees feel appreciated.
Most professionals accept a position with the hope and understanding that they’ll move up in the company. However, when promotions and new challenges don’t materialize, they end up feeling underutilized and frustrated. According to iHire’s 2023 Talent Retention Report, over 20 percent of employees said they left a job because of a lack of growth and advancement opportunities.
People want to do meaningful work that inspires and challenges them. When work is stagnant, they’ll seek new opportunities.
How to prevent employees from quitting because of no advancement opportunities: The iHire report noted that 28.6 percent of employees said they’d stay with their employer if given an opportunity to move up in the organization. Keep your team members by providing a clear career path, promoting from within, and communicating with them about opportunities and expectations.
Over 45 percent of respondents in the Resume Builder survey said stress was the leading reason they quit their jobs, while another 30 percent cited an overwhelming workload. Additionally, according to Gallup’s State of the Global Workplace: 2024 Report, employee stress is at an all-time high globally. Notably, employees in companies with poor management practices are almost 60 percent more likely to experience stress than those in environments with effective management practices.
While rewarding high achievers with more responsibilities makes sense, be careful. Overloading employees with increasing demands may push them to seek out what they perceive as less-stressful opportunities elsewhere. Stress and productivity don’t mix, so your organization will suffer.
How to prevent employees from quitting because of stress and overwork: There are several strategies to reduce stress in your business, with effective communication being one of the most impactful. Encourage open communication within teams and between management and employees. If a team member shows signs of stress, engage in a discussion and explore how other team members or managers can offer support. Additionally, promote regular breaks, exercise and healthy eating habits for employees.
According to isolved’s 2024 HR Trends Survey, 65 percent of employees report experiencing burnout, with 72 percent saying burnout has affected their job performance. Employee burnout is dangerous for your team and your business overall. Employees experiencing burnout lack energy, passion and motivation to do their work. They may disengage by implementing a quiet quitting approach, either in response to burnout or as a preventive measure against burnout in a stressful work environment. Many burned-out employees will quit, particularly if burnout is accompanied by a lack of recognition.
How to prevent employees from quitting because of burnout: Leaders must carefully watch for signs of burnout, including early indications of quiet quitting, and manage the decline in employee engagement before it’s too late.
According to the isolved HR Trends survey, 39 percent of employees cite the company culture as the primary reason they don’t like their job. A positive, employee-centric company culture is crucial for employee engagement and retention because a toxic culture fuels burnout, disengagement, a lack of appreciation and numerous other factors that cause employees to quit.
Notably, a business’s diversity, equity and inclusion measures — including accommodations for employees with disabilities — are significant elements of a company’s culture. In isolved’s Voice of the Workplace report, 14 percent of respondents said they’d quit an organization they perceived to be non-inclusive, and 20 percent said they wouldn’t even apply to a non-inclusive company. A poor company culture can harm the employee experience and hinder an organization’s ability to attract and retain talent.
How to prevent employees from quitting because of a poor company culture: Successful businesses must prioritize creating and maintaining positive employee experiences that match or exceed expectations. Establish and emphasize your company’s values, treat employees well by providing excellent benefits, and keep the lines of communication open.
According to the Work Institute’s 2024 Retention Report, an employee’s autonomy over their schedule and tasks is one of the key tenets of a positive work-life balance and job satisfaction. A positive employee-manager relationship requires trust and leads to better outcomes in the workplace. Team members thrive when their supervisors trust and empower them with sufficient autonomy to do their jobs. When leaders micromanage employees, workers feel anxious and can’t work effectively.
How to prevent employees from quitting because of a lack of trust and autonomy: Instead of micromanaging, empower your staff with the permissions and tools they need to work effectively and make decisions. Communicate your vision to everyone, encourage them to learn new skills, and delegate crucial responsibilities, not just menial tasks.
isolved’s Voice of the Workforce report noted that 12 percent of employees said their colleagues or boss are keeping them with their current employer. When trusted colleagues leave, some employees may no longer feel a connection to the company, which may ultimately prompt them to exit, too.
How to prevent employees from quitting because colleagues leave: You can’t control your employees’ personal feelings about their co-workers, and some employees will move on despite your best efforts. Still, you can focus on creating the strongest company culture and reward structure possible to keep talented staff members even if their work friends depart.
According to the iHire report, employers reported that 49.3 percent of employees told them they were leaving their jobs for “personal reasons.” However, when asked directly, only 21 percent of employees said they left a job for personal reasons. There are a variety of personal reasons to quit a job, including health issues, a change of residence, family obligations, a spouse’s job commitments and much more. However, leaving for “personal reasons” may also indicate an unwillingness to share deeper reasons.
How to prevent employees from quitting for personal reasons: You can’t control employees’ personal reasons for leaving and must respect their decisions. However, if you suspect an employee is being vague because they don’t feel comfortable communicating about workplace issues that led them to quit, consider conducting an exit interview and encourage them to speak freely. It may be too late to save that employee, but if underlying issues do exist, at least you’ll be aware so you can address them.
Quitting because of salary issues is extremely common. In the isolved HR Trends survey, 64 percent of respondents said they weren’t satisfied with their current job because of their salary. In the Resume Builder survey, 56 percent of respondents said they were quitting their jobs because of low pay. And employers in the iHire survey said 37.5 percent of employees who quit blamed low pay.
Clearly, employee compensation is crucial, and employers understand this. In fact, 65.2 percent of employers who participated in iHire’s survey issued pay raises in the past year to improve retention, and another 40 percent offered bonuses.
How to prevent employees from quitting due to low pay: Your valued employees need more than verbal praise and recognition. Competitive compensation is a vital consideration. Evaluate your salary ranges to ensure your offerings are competitive, and consider offering employee bonuses. If you can’t afford to pay higher wages, compensate your team with creative perks, like generous paid-time-off (PTO) policies.
If your company has received bad news in the form of poor overall sales, increased competition or problems with cash flow, employees may doubt the business’s future. They may start dusting off their resumes to avoid a gap in their income in case your company goes under.
How to prevent employees from quitting due to company viability concerns: Business transparency is crucial in this situation. You don’t want to lose talented team members due to uncertainty or rumors, so address their concerns and clear up any confusion if possible. However, your employees must do what’s right for them, so be honest about your business’s challenges and keep your team in the loop about what’s happening.
According to the iHire report, 15.7 percent of respondents said a lack of professional development opportunities was a factor in their plans to quit. Another 27.7 percent said they’d stay with their current employer if more professional development opportunities were available.
How to prevent employees from quitting because of a lack of training and development: A company that values its team invests in employee training and development. Throwing employees into a job without preparation is certain to cause frustration and hurt productivity. Once an employee has mastered one set of skills, provide ongoing training and education opportunities to help them advance in their careers.
When asked about job dissatisfaction, 36 percent of the isolved HR Trends survey respondents cited unhappiness with their employer’s employee benefits package. Additionally, 44 percent of the Resume Builder survey respondents said they would likely quit their jobs this year to pursue better benefits. Health insurance, retirement plans, mental health assistance and life insurance are examples of highly sought-after employee benefits.
How to prevent employees from quitting because of poor benefits: Survey your team about their most desired perks and strive to create as robust a package as possible. Consider partnering with a professional employer organization (PEO) to ensure you can offer excellent employee benefits.
We addressed strategies for keeping your team members in response to specific quitting scenarios. However, consider the following overall best practices to improve employee retention while boosting morale and engagement:
Jennifer Dublino contributed to this article.