“The 7 Hidden Reasons

Employees Leave:
Recognize the Subtle Signs
and Act Before It’s Too Late”

F. Leigh Branham
Keeping the People, Inc.
www.keepingthepeop[e.com
LB@keepingthepeople.com
What Managers Believe About Turnover

Almost 9 in 10 said “more pay.”

11%

$
$
89%

From Harvard Management Update, June, 1998 .

Based on 19,700 Post-Exit Surveys
Why Employees Leave: Belief vs. Reality

What Leaders Believe What Employees Say

11% Other Reasons 12% “More Money”

89% 88%
“More Money” Other Reasons
The 7 “Hidden” Reasons Employees Leave

1. The job or workplace not as expected

2. Job doesn’t fit their talents & interests
3. Little or no feedback and coaching
4. Feel no hope for career growth
5. Feel devalued and unrecognized
6. Feel overworked and stressed out
7. No trust or confidence in leaders
Four Basic Needs of People at Work

Trust Competence

Hope Worth
Could it be…the Manager!?

SO, DOES ANYONE

KNOW WHAT THE
PROBLEM IS?
Why Many Workplaces are “De-Magnetized”

“Only 53% of employees feel their

boss does a good job dealing
with people-related issues.”
--Discovery Surveys poll of 50,000 employees
at 60 U.S. companies.
Worker Disengagement in the U.S.

Actively
Disengaged
Engaged
15%
25%

Not Engaged
60%

Source: The Gallup Organization

Who’s Responsible for Employee Engagement?
 Job Changing: 4 Differing Views

• Traditionalists: “Job changing carries a stigma.”

• Baby Boomers: “Job changing puts you behind.”

• Gen-Xers: “Job changing is necessary.”

• Millennials: “Job changing is part of my

daily routine.”
The Looming Talent Shortage
Is Your Company a “Magnet for Talent”?
Does it Pay to Treat People Right?

S&P 500:
25% growth

Fortune’s
Great Places to Work:
133% growth
“Disposable Employee” Mentality
 How Do You View Turnover?

Replacement Mindset:
“Turnover is acceptable
as a cost of doing business.”

Retention Mindset :
“Employee disengagement is unacceptable
because the business costs are too great.”
Visible and Hidden Costs of Turnover

• Separation
• Recruitment
• Training

• Lost Productivity
• Lost Sales
• Customer Service
Disruption
• Staff Overload
• On-Boarding
• Morale
How Employees Disengage and Leave
Start with enthusiasm
Question decision
Disillusioned
Consider quitting
Search for options
Receive offer
“Quit or stay?”
Quit-Stay
The 7 “Hidden” Reasons Employees Leave

1. The job or workplace not as expected

2. Job doesn’t fit their talents & interests
3. Little or no feedback and coaching
4. Feel no hope for career growth
5. Feel devalued and unrecognized
6. Feel overworked and stressed out
7. No trust or confidence in leaders
Unrealistic Expectations:
An Extreme Example
 To Prevent & Correct Reason #1:

Engagement Practice #1:

Give a “realistic job preview”

to every job candidate.
The 7 “Hidden” Reasons Employees Leave

1. The job or workplace not as expected

2. Job doesn’t fit their talents & interests
3. Little or no feedback and coaching
4. Feel no hope for career growth
5. Feel devalued and unrecognized
6. Feel overworked and stressed out
7. No trust or confidence in leaders
What part of the job do they like?
All-too-common story
Biggest Pitfall of Hiring:

Hiring
in a
Hurry!
 To Prevent & Correct Reason # 2:

Engagement Practice # 12:

Hire for Fit,

Matching Talents with Needs.
The 7 “Hidden” Reasons Employees Leave

1. The job or workplace not as expected

2. Job doesn’t fit their talents & interests
3. Little or no feedback and coaching
4. Feel no hope for career growth
5. Feel devalued and unrecognized
6. Feel overworked and stressed out
7. No trust or confidence in leaders
 Feedback: 4 Differing Views

• Traditionalists: “No news is good news.”

• Boomers: “Feedback once a year,

with lots of documentation.”

• X’ers: “Sorry to interrupt,

but how am I doing?”

• Millennials: “Feedback whenever I want it,

at the push of a button.”
 What’s Worse…
Destructive Feedback or None at All?
 Reason # 3: Performance Coaching
Traditional vs. Partnering

• Manager-driven • Employee has input

• Parent-child • Adult-to-adult
• Personality • Results
• Vague goals • Specific objectives
• Yearly event • On-going

= Gets Compliance = Gets Commitment!

 To Prevent & Correct Reason # 3:

Engagement Practice #19:

Give timely, specific,

& constructive
feedback and coaching.
The 7 “Hidden” Reasons Employees Leave

1. The job or workplace not as expected

2. Job doesn’t fit their talents & interests
3. Little or no feedback and coaching
4. Feel no hope for career growth
5. Feel devalued and unrecognized
6. Feel overworked and stressed out
7. No trust or confidence in leaders
Which prevails in your organization?

Old Career Contract?

(“Job ownership,” organization control,
dependent/passive workers)
or
New Career Contract?
(Mutual needs, flexibility,
empowerment, self-managed)
 Training: 4 Differing Views

• Traditionalists:
“I learned the hard way…you can, too!”
• Boomers:
“Train ‘em too much and they’ll leave.”
• X’ers:
“The more we learn, the more we stay.”
• Millennials:
“Continuous learning is a way of life.”
Reason #4: Lack of Career Growth

Typical Issues:
• Perception of Limited Growth
• Unfair or Inefficient Selection Process
• Not Hiring from Within
• Unfairness/Favoritism in Promotion Decisions
• Insufficient Training
To Prevent & Correct Reason # 4:

Engagement practice # 23:

Provide
career self-management
tools & training.
The 7 “Hidden” Reasons Employees Leave

1. The job or workplace not as expected

2. Job doesn’t fit their talents & interests
3. Little or no feedback and coaching
4. Feel no hope for career growth
5. Feel devalued and unrecognized
6. Feel overworked and stressed out
7. No trust or confidence in leaders
 Reason # 5:
7 Ways Employees Feel Devalued:

• No “Thanks!”
• No Sign of Caring
• No One Asking-Listening
• Withholding information
• Poor Pay Practices
• Treated Like Children
• Missing Tools & Resources
How Do Your New Hires Feel?

HERE’S THE NEW GUY…

I DON’T KNOW
HIS NAME.
Acknowledging Employees—
An Inexpensive Investment
To Prevent and Correct Reason # 5:

Engagement Practice #32:

Ask for employee input,

then listen, and respond.
The 7 “Hidden” Reasons Employees Leave

1. The job or workplace not as expected

2. Job doesn’t fit their talents & interests
3. Little or no feedback and coaching
4. Feel no hope for career growth
5. Feel devalued and unrecognized
6. Feel overworked and stressed out
7. No trust or confidence in leaders
 Reason #6: Work-Life Challenges

• Burnout from staff reductions and “job-loading”

• Abuse, harassment, & insensitivity
• Sacrificing family & personal life
• Demands of family & personal life
• Inflexibility of work hours/policies
• Inability to manage stress
• Too little fun

All these seriously impair performance,

customer service quality, and safety!
“Culture of Sacrifice”
 Balance: 4 Differing Views

Traditionalists:
“What’s balance!?”
Boomers:
“I’m not sure balance is even possible.”
X’ers:
“Give me balance now, not when I’m 65!”
Millennials:
“Work isn’t everything…I need flexibility so I
can balance all my activities.”
 To Prevent & Correct Reason #6:

Engagement practice # 48:

Tailor “culture of giving”

to employees’ needs.
The 7 “Hidden” Reasons Employees Leave

1. The job or workplace not as expected

2. Job doesn’t fit their talents & interests
3. Little or no feedback and coaching
4. Feel no hope for career growth
5. Feel devalued and unrecognized
6. Feel overworked and stressed out
7. No trust or confidence in leaders
 Reason # 7: Key Issues for Leaders

• Self-Centered • Servant Mentality

• Employee Comes • Employee Comes

Second First

• Driven Workers • Nurtured Workers

Feel Stressed Give Great Service
 Leader Mindsets:
Which do you believe?

“Give ‘em an inch

and they’ll take a mile.”
vs.
“Give and they
will give back.”
 To Prevent & Correct Reason # 7:

Engagement practice # 54:

Servant Leadership
The 7 “Hidden” Reasons Employees Leave

1. The job or workplace not as expected

2. Job doesn’t fit their talents & interests
3. Little or no feedback and coaching
4. Feel no hope for career growth
5. Feel devalued and unrecognized
6. Feel overworked and stressed out
7. No trust or confidence in leaders
We Can’t Afford the Luxury
of Another Bad Manager!
Good Managers Are Heroes!
Is Your Company a “Magnet for Talent”?
 4 Types of Leaders
Makes Numbers Doesn’t Make Numbers

Treats People
Right 1 ?2
Doesn’t Treat
People Right
?4 X
3
 What’s Your Plan, Stan?

“RDD” - “Retention Deficit Disorder”

Balanced “Employer-of-Choice” Strategy

Short term Long term

• Base pay • Job Security
Tangibles
• Incentives • Savings Plans
• Health Benefits • Profit Sharing

• Work/Life benefits, • Work climate/culture

(flextime, etc.)
Intangibles • Hiring practices • Leader behavior

• New hire coaching • Trust in leaders

Recruiting & Retention Tactics*

• Employee Referral Bonus (63%)

• Sign-on/Hiring Bonus (61%)
• Base Salary Increases (55%)
• Spot Bonuses (43%)
• Retention/Stay Bonus (27%)
• Stock-Option Program (27%)
• Paying Above Market (25%)
• Project Milestone Bonus (16%)
• Overtime Pay/Time-Off (14%)
• Separate Salary Structures (13%)
• Larger Merit Increases ( 7%)
• Paid Sabbaticals ( 3%)
* Workforce Recruiting magazine, August 12, 2004
Employer-of-Choice Scoreboard

Leading Indicators: 2006 2005

“Regrettable Turnover” rate ___ % ___ %
Employee Referral rate ___ % ___ %
Ratio of Jobs filled Internally ___ % ___ %
New Hire Retention rate ___ % ___ %

Absenteeism rate ___ % ___ %

Ratio of Acceptances to Offers ___ % ___ %
Percent of Engaged Employees ___ % ___ %
Quit rate ___ % ___ %
 Employees Can Re-Engage and Stay

Start with enthusiasm es

y e
plo
Question decision Em
ged
Disillusioned ga
En
Consider quitting
Search for options
Receive offer
“Quit or stay?”
Quit-Stay
Three decide to jump off…
 Thethe
Leap Knowing-Doing GapGap!
Knowing-Doing

“You can’t build a reputation

on what you are
going to do.”
 E-mail: LB@keepingthepeople.com
Website: www.keepingthepeople.com
 The information contained in this presentation is
considered proprietary.
It is furnished in confidence, with the understanding
that it will not be used or disclosed for other than
internal informational purposes without the
permission of Keeping the People, Inc.

For more information:

Keeping the People, Inc.
13488 West 126th Terrace
Overland Park, Kansas 66213
(913) 620-4645