You are on page 1of 11

Top 10 Reasons Why Employees Quit

/Leave Their Job:

Image Source/ Image Source/ Getty Images
Updated August 22, 2015.
Employees quit their job for many reasons. They follow spouses across the country, stay home
with children, and go back to school. Those reasons are tough to address by an employer because
they involve life events in the employee’s world outside of work.
But, the majority of reasons why employees quit their job are under the control of the employer.
In fact, any element of your current workplace, your culture and environment, the employee’s
perception of his job and opportunities are all factors that the employer affects.
The best way to retain employees is to stay in touch with what they’re thinking. Are they happy
with their work? Are their needs for challenge, belonging, development, and meaningful work
met? Do they have the communication, problem solving, feedback, and recognition that they
need from their boss?
If you stay in touch with your employees, you can head off potential retention issues.

But, you must think about employee retention every day. Are the systems, processes, and
requirements in your company supportive of employees?
Do they support the most important needs of your employees for meaningful work, market
compensation and benefits, and the ability to have an effect on their work and workplace? Most
importantly, do they make employees want to stay?

 Relationship with boss Employees don’t need to be friends with their boss but they need to have a relationship. a great opportunity drops into an employee’s lap occasionally. includes a comment about passionate coworkers who the employee cares about and will miss. this is not the norm. Second only to an employee’s manager.  Relationships with coworkers When an employee leaves my company. pay attention to and enhance the factors they identify that keep them coming back every day. If you have an employee who acts as if she is. are a critical components of an employee’s work environment. confidence and commitment. create. To have a toxic relationship with the person an employee reports to undermines the employee’s engagement. The boss provides direction and feedback. spends time in one-to-one meetings. Work closely with employees who report to you to ensure that each employee is engaged. and transporting themselves to work. . to say good-bye. and perform. The boss is too much of an integral part of their daily lives at work for an uncomfortable relationship. You can manage them. Here are ten critical reasons why employees quit their job. But. you will lose them to an employer who will. and challenged to contribute. Research from the Gallup organization indicates that one of the 12 factors that illuminate whether an employee is happy on their job is having a best friend at work. Provide that great opportunity in your company – and know what that great opportunity is – to retain your best employees. Find out what it is before the employee announces her departure. getting ready for work. A bad boss is also the number one reason why employees quit their job. Otherwise. They spend more than a third of their days working. Really.  Bored and unchallenged by the work itself No one wants to be bored and unchallenged by their work. interacts. the coworkers with whom he sits. Relationships with coworkers retain employees. Then. Here's how to get along with your boss. Sure. excited. Hold stay interviews to determine why employees stay with your organization. every email that is sent to the whole company.Ask them. Employees want to enjoy their job. Employees job search for a reason. Notice and intervene if problems exist. and serves with on teams. and connects the employee to the larger organization. you need to help her find her passion.

salary freezes. you need to stay on top of the competition or you'll lose skilled employees  Organization’s financial stability Financial instability: a lack of sales. and independence. accomplishment. They are participating in activities that they are good at and that stretch their skills and abilities even further. Employees need to feel connected and that they are part of an effort that is larger than just their job. but they are not something that you can do to people or give them.the last figure I saw was an average 10% increase for going to a new employer. successful competitors highlighted in the news.  Autonomy and independence Organizations talk about empowerment. A colleague presented a session about the Oz Principles at a recent company event. They are responsible for doing it. He pointed out that by creating a culture of accountability. This includes opportunity. If an employee can’t see a path to continued growth in their current organization. You are responsible for the work environment that enables them to do this. bad press. Too many managers assume that the employee will receive the communication from executive staff and make this leap. and self-confidence. If they’re not part of it. . employee turnover. you’ll lose them. They need your help to understand and connect their job to the bigger picture. autonomy. If they’re not able to do this in your jobs. They don’t. your best employees will leave.  Contribution of work to the organization’s business goals Managers need to sit with each reporting employee and discuss the relevance of the employee’s job and key contributions and deliverables to the overall strategy and business plan of the organization. Employees want to develop and grow their skills. they’ll find one where they can. They are traits and characteristics that an employee needs to pursue and embrace. Make sure that you’re talking with them and that you know their hopes and dreams. Especially for hard-to-fill positions. all lead to an employee’s feeling of instability and a lack of trust. they are likely to look elsewhere for a career development or promotion opportunity. layoffs or reduced work hours. they feel a sense pride. mergers and acquiring companies. you create empowerment as employees own and execute their responsibilities. Without this.  Employees resign when their compensation package is below market They can get more money by changing jobs . Opportunities to use skills and abilities When employees use their significant skills and abilities on the job.

Your overall culture keeps employees – or turns them away. Does your organization appreciate employees. employee activities. they will stay. If they respect your judgment.Employees who are worried tend to leave. if you wish to retain your best employees. and decision making. and direction is clear and understood. direction. the cake. celebrations. you will reduce turnover and retain your most wanted employees. Let them know how the business is doing at all times and what the organization’s plans are for staying on track or recovering in the future. If not. If you pay attention to these ten factors. Which gets you what you want and need for success?  Management’s recognition of employee job performance Many place employee recognition further up the list. but it’s probably not the deciding factor in an employee's decision to leave your organization. but this is where recognition scored in a recent Society for Human Resources Management (SHRM) survey of employees. and provide compensation. But.  Overall corporate culture While it’s not the top item on employee lists. If not. especially culture. A lack of recognition can affect many of the above factors. It’s expensive to recruit a new employee. After all. and team building efforts that make employees feel that your organization is a great place to work? Employees appreciate a workplace in which communication is transparent. Make every change and potential change transparent. pay attention to the more significant factors. treat them with respect. Why not expend the effort necessary to retain the employees that you have already painfully recruited and hired? . While recognition is important. they will leave. it is not among employees’ chief concerns. and perks that demonstrate respect and caring? Is your work environment for people conducive to employee satisfaction and engagement? Do you provide events. the overall culture of your company makes a difference for employees. executives are approachable and respected. benefits. the most important issue here is the employees’ trust in and respect for the management team. Make recognition the way you live in your organization to keep your best talent. they have the financial stability of their families to consider when they decide which executive they will follow – or not. But. you’ll be holding regular exit interviews and good-bye lunches. management is accessible. Provide a lot of genuine appreciation and recognition as icing on the cake for employee retention.

The survey explored 35 aspects of employee job” . with 41% of employees indicating they were ‘very satisfied’ and 42% ‘somewhat satisfied. you need to know what to improve. 2015. compensation and benefits. relationship with management. Satisfaction Survey Results According to this study. employees reported overall satisfaction with their current job.S. The survey’s purpose is to assist employers to develop the right programs and practices when they seek to have an impact on these two factors that are critical to employee morale and motivation. The annual Society for Human Resource Management (SHRM) 2011 Employee Job Satisfaction and Engagement Survey identifies the factors that are important in employee job satisfaction and employee engagement as perceived by employees. Added in 2011.htm Jose Luis Pelaez/ Iconica/ Getty Images Updated October 07.about. Before you can improve employee satisfaction and employee engagement. the level of overall satisfaction has been trending downward since 2009. and work environment. “83% of U. divided into four topic areas— career development.’ Despite this high percentage of satisfied employees.http://humanresources. Understanding employee preferences provides guidance for the knowledgeable allocation of resources. the survey also explored employee engagement.

)  Compensation: 54%. The U.)  Autonomy and independence: 52%. These workers complain that they don't have the tools they need to do their jobs. where 5 is highly engaged.000 people interviewed "actively disengaged" at work. is a different story. as the top most important determinant of job satisfaction. employees were only moderately engaged (3. Engagement. (76% are satisfied or very satisfied.)  Benefits: 53%. (73% are satisfied or very satisfied.)  Organization’s Financial Stability: 55%. They don't know what is expected of them. race or gender. (74% are satisfied or very satisfied in their workplace. Their bosses don't listen to them.) . for the fourth consecutive year. Gallup found 19% of 1. (67% of employees are very satisfied or satisfied with their job security.Employees in organizations that had fewer than 100 employees expressed satisfaction more frequently than employees in larger organizations with 2500 or more employees. has a problem with employee engagement.)  The Work Itself: 53%. Findings by the Gallup organization about disengaged employees were highlighted in the Wall Street Journal.)  Relationship with Immediate Supervisor: 55%. (65% are satisfied or very satisfied. (61% are satisfied or very satisfied. (63% are satisfied or very satisfied.)  Communication between Employees and Senior Management: 53% (54% are satisfied or very satisfied. (69% are satisfied or very satisfied.S. job tenure. SHRM found no significant differences in overall job satisfaction by employee industry. however. Top 10 Retention strategic plans Employees identified these factors as their top 10 most important contributors to their job satisfaction.  Job security: 63%.)  Opportunities to Use Skills and Abilities: 62%. In this year’s SHRM survey.6) on a scale of 1 to 5.

mentoring. according to the SHRM report.)  Feeling Safe at Work: 48%. Coaching. (76% are satisfied or very satisfied.)  Relationships with Coworkers: 38%. Relationship with their immediate supervisor is new this year to the list of top five most important job satisfaction contributors.) SHRM Reports that Benefits which had been in the top two contributors to job satisfaction since 2002 slipped to fifth place. The percentages indicate the overall satisfaction of employees with the listed condition of engagement.  The work itself: 76%  Relationships with co-workers: 76%  Opportunities to use skills and abilities: 74%  Relationship with immediate supervisor: 73%  Contribution of work to organization’s business goals: 71%  Autonomy and independence: 69%  Meaningfulness of job: 69%  Variety of work: 68%  Organization’s financial stability: 63%  Overall corporate culture: 60%  Management’s recognition of employee job performance: 57% . (60% are satisfied or very satisfied. Management’s Recognition of Employee Performance: 49%. 18 Employee Engagement Conditions Employee engagement. (65% are satisfied or very satisfied.)  Flexibility for Work-Life Balance: 38%. is more likely to occur when certain conditions exist. and succession planning are less important in companies with less than 100 employees. Among SHRM’s other results: Chance for career advancement (36%) has been declining since 2002.)  Overall Corporate Culture: 46%. Employers can maximize employee engagement via improving these factors. (57% are satisfied or very satisfied. The items are listed in order from the employee survey results: most satisfied to least satisfied with the condition in their organization. (78% are satisfied or very satisfied.

spirituality. in addition to the demands of the workplace. employers have some work to do to fully satisfy and. Note that four aspects of employee career and professional development fall in the bottom seven for employee satisfaction: Definition: Work-life balance is a concept that supports the efforts of employees to split their time and energy between work and the other important aspects of their lives. community participation. Work-life balance is assisted by employers who institute policies. Job-specific training: 55%  Communication between employees and senior management: 54%  Organization’s commitment to professional development: 54%  Networking: 49%  Organization’s commitment to corporate social responsibility: 49%  Career development opportunities: 48%  Career advancement opportunities: 42% With the percentages noted in both the satisfaction portion of the survey results and the engagement aspects of the survey. friends. personal growth. Simple interface. self care. Work-life balance is a daily effort to make time for family. and other personal activities. When they spend the majority of their days on work-related activities and feel as if they are neglecting the other . Powerful scheduling. procedures. especially. and expectations that enable employees to easily pursue more balanced lives. actions.  Work Life Balance  Human Resources  HRM  Stress  Work Flexibility The pursuit of work-life balance reduces the stress employees experience. engage employees. Free for 30 days.

we would get 78. What Is Employee Turnover? In human resource terms. responsible time and communication expectations. professional. Employers can assist employees to experience work-life balance by offering such opportunities as flexible work schedules. for any reason. we would lose three staffers per month * 12 months = 36 for the year. enabled. which assumes this same turnover rate will continue for the entire year: 6.26% (the very slight difference is due to rounding). 0652 = 6. If instead you had three staffers quit last month. You would multiply this by 12 to calculate an annual rate.important components of their lives. Generally. and supported. If you lost three staffers in the past year out of your staff of 46.0652 = 6. and monetary need to achieve. for a loss of three staffers each month. Calculating Employee Turnover Employee turnover is calculated by dividing separations by the total staff: employee turnover = number of separations / average number of employees. Managers who pursue work-life balance in their own lives model appropriate behavior and support employees in their pursuit of work-life balance. and company-sponsored family events and activities. it is stated as an annual percentage.52% monthly. they are called a turnover or separation. And if we divide the 36 turnovers by our total staff of 46. As a double check . They retain outstanding employees to whom work-life balance is important. your turnover rate would be: employee turnover = 3 separations in a month / 46 employees = . work-life balance is challenging. Managers are important to employees seeking work-life balance. stress and unhappiness result. employee turnover is a measurement of how long your employees stay with your company and how often you have to replace them. Work-life balance enables employees to feel as if they are paying attention to all the important aspects of their lives.if this turnover continued. They create a work environment in which work-life balance is expected.52% annual turnover.24% annually. Any time an employee leaves your company.52% monthly * 12 months = 78. your annual turnover would be: employee turnover = 3 separations / 46 employees = . . and your total team is 46 employees. paid time off (PTO) policies. Because many employees experience a personal.

A goal might be to keep turnover to a level no higher than the average for the industry. so replacing personnel will not tend to have much impact on the business. such as recruiter fees or advertisements. including the difficulty of filling the position. In the fast food industry. Workers in this industry tend to be unskilled and may change positions often since there are many similar options available. the amount of training required for a new employees and specific costs. generally due to reducing staff because of a business downturn or change in business focus or because of an employee taking some action that is cause for termination. which can impact the business for years to come. Voluntary turnover is when an employee quits.What does this mean to you as a manager? Well. They might also come up with some additional metrics based on level of responsibility . for example. To come up with a level that is reasonable. Each of them has different causes. a conflict with a supervisor or a personal reason. A Reasonable Level of Turnover There will be times where employees leave the company. In terms of costs. leading to very low turnover in that position. . That is a lot of time you could be using otherwise to manage your department and improve your own skills! Causes of Employee Turnover There are two main categories of turnover: voluntary and involuntary. A 78% turnover rate in a team of 46 people means that you will have to hire and train 36 new people a year. such as needing to stay home with a family member. Impact of a Turnover on a Company The specific impact of replacing an employee varies based on many factors. such as theft. it may be necessary to fill some positions every few months or even more This can be due to finding a better position at another company. When a company president leaves a tremendous amount of skill and knowledge will leave. Involuntary turnover is when an employee is laid off or fired. the turnover for audit staff in an accounting firm might be evaluated separately from that of audit partners. companies often look to industry averages. company presidents have often been with the same company for much of their career and tend to be in the position for years. On the other hand. these positions generally require limited training to reach full productivity. and so a goal of zero percent turnover is a recipe for disappointment.

hire and train a new employee to fill the position that was vacated. lost knowledge of company operations that has to be recreated later and the impact on morale of people leaving the company. It also includes payment for unemployment and COBRA insurance for employees who no longer work for the company. .The Cost of Turnover Turnover costs can be both direct and indirect. Direct turnover costs would include the costs to locate. Indirect costs can be harder to quantify and include things like lost sales or customers due to inexperienced staff or being short-staffed.