Five Reasons Employees Leave Companies and How to Make Them Stay
Being able to retain great employees is key to any organization’s success. With statistics like one-third of new employees quitting after around six months and 3–4.5 million employees quitting their jobs in the US, it can feel like the odds are against you. The answer doesn’t lie in the what, though — the key is the why.
Why do employees tend to leave? We’ll touch on five reasons here so you can craft a plan to create stability on your team.
5 Reasons Employees Decide to Leave a Company
- Lack of pride and trust in an organization. People want to work for well-managed companies with strong missions, skills, and resource leaders. What you can do: Look for ways to communicate your company’s mission to your team in a positive, concerted way, and connect your team’s work to the overall mission at every opportunity you can. Invite your own boss and others to visit the team’s workspace in informal walk-throughs or meet-and-greets.
- Relationship with their supervisor. Employees want a boss they respect as well as one that supports them. What you can do: Develop your employees — invest in them and give them the tools they need to succeed.
- Lack of meaning in their work. People want to work for companies that let them do the things that appeal to their deepest interests. What you can do: Talk to your team members regularly about how they feel they fit their role. If you’re unable to reformat their role, consider other measures that might alleviate their unhappiness.
- Work-life balance. No one wants to work 60–70-hour weeks consistently — this leads to burnout and will likely lead to an employee terminating their role at your company. What you can do: Encourage employees to use their accumulated PTO and lead by example by using your own. Chat with your team about their hobbies outside of the office.
- Fair compensation. It should go without saying that people want to feel valued and often define this by their salary. What you can do: Keep up with regular competition analysis on compensation rates by role but make sure you’re also keeping up with inflation and how that will affect things. Compare the benefits offered as well as ongoing learning and development opportunities employees may expect. Perks such as healthcare, dental and vision insurance, and 401k matching are equally important to employees.
With the turnover rate rising in recent years, it’s important to implement these strategies if you want to retain your top talent. Understanding why people leave is the first step in making changes to encourage them to stay.
If learning more about retaining high-potential employees or how Vayability can help develop your emerging talent is something that interests you, get in touch with us today.
Vayability is a leadership development platform built from the ground up to accelerate the development and business impact of emerging talent. Combining more than 20 years of executive learning, Vayability focuses on impactful leadership skills, personalized learning, live coaching, and measurable growth. Find out how top companies embrace success at vayability.net.
Written by Rachel Strysik