Why Do Employees Leave Their Jobs...and Why Do They Stay?

High employee turnover is a serious problem for many companies in every industry—even after the Great Resignation has been swept under the rug. However, employee turnover rates are still as high as they’ve ever been, and “We’re Hiring” signs still dot many business windows.

So why do employees leave their jobs? What’s making them quit in such large numbers? Even more importantly, why do good employees quit? And what can you do to make them stay?

We’re here to give you the answers to all these questions and help you improve your employee retention strategy.

Top 5 Reasons Employees Quit

Many employees leave for perfectly valid reasons that have nothing to do with your company—some people move, others have children, and some may simply want a change in position or industry.

However, the most common reasons employees quit are almost always preventable. This means it’s possible for most companies to significantly reduce the high costs of turnover. So what are you waiting for? Learn the top five reasons people leave and what you can do about it.

1. Toxic Work Culture

According to studies, a toxic work culture is one of the most common reasons employees decide to quit. “Toxic” may be a buzzword nowadays, but the fact remains that unhealthy, unsupportive workplaces cause many employees to leave. Here are some warning signs that you might have a toxic workplace:

• Employees feel like they don’t get the support they need to excel.
• Employees may feel stuck, without opportunities to push themselves, grow, and get promotions.
• Managers micromanage, constantly checking in on every little thing and not demonstrating trust.
• You have a “hustle” culture without work-life boundaries, leading to high stress and burnout levels.
• Any type of sexual or verbal harassment occurs in the workplace.
• Interpersonal relationships between coworkers and managers are poor or unhealthy.

A toxic work culture can encompass many different aspects of your company culture—and many leaders may not notice these signs.

What You Can Do

Communicate with employees through surveys, meetings, and one-on-ones to get a feel for their perception of your culture. Be open to feedback. After all, if employees don’t feel supported and cared for, they have a high chance of quitting.

2. Insufficient Compensation

Compensation is a huge factor in employee turnover. The fact of the matter is, no matter what extra benefits or perks you may offer, if employees aren’t earning what they’re worth, they’re going to find other opportunities.

‍Sixty-three percent of employees who quit in 2021 did so because of low pay. Recent data shows switching jobs is the best way to get a large raise, by far.

What You Can Do

You have to find ways to entice your employees to stay. While it may not be possible to give everyone huge raises, try to think of ways to offer better rewards, such as gifts, bonuses, or incentives, to boost your compensation offerings. The more you customize your compensation to the needs of your team members, the more satisfied and valued they’ll feel.

3. Lack of Advancement/Development Opportunities

Have you ever been stuck in a dead-end job with no hope of a promotion or advancement of any kind? That feeling of stagnation is one of the biggest reasons employees quit. Sixty-eight percent of employees who feel their current job lacks opportunities for promotion or growth intend to change jobs.

People take jobs assuming that they’ll be able to learn, grow, and gain new skills and knowledge. Along with that comes the assumption of promotions and raises. 

While that may seem difficult to achieve for every employee in every position, think of it this way—wouldn’t you rather retain employees who have grown and gotten better at their jobs than replace them and start over?

What You Can Do

Strive to craft a development plan for each employee. Have one-on-one discussions about career aspirations. Based on these conversations, establish goals with relevant milestones. Milestones might encompass mentorship, job shadowing, or online courses.

4. Lack of Flexibility

One consequence of the growth of remote work is that employee expectations have changed. People expect flexibility and work-life balance now, and if their position doesn’t give that to them, they’re more likely to quit.

The typical 9-to-5 grind is not attractive to employees anymore. According to a Randstad report, 41% of workers today are looking for flexible hours, and similar numbers want to work from home, with 37% willing to quit their jobs if forced to give up work-from-home privileges.

What You Can Do

Letting employees choose where, when, and how they get their work done can be a huge boost to their emotional and physical well-being. Other flexibility ideas include offering no-meeting Mondays, unlimited PTO, or a four-day workweek. Ask your employees what type of flexibility they value most and consider what’s feasible for your company. 

Learn more about the different types of workplace flexibility.

5. Bad Relationship With Manager

Gallup reports 50% of employees have quit a job because of a bad manager. When employees don’t get along with their manager, they’re often more stressed and disengaged compared to those who have a good relationship.

The importance of the relationship between employees and managers can’t be overstated. Managers need to support and guide employees through good times and bad—when employees don’t feel that support (or worse, when they’re actively disliked or ignored by managers), they’re not going to want to stay.

What You Can Do

Trust goes both ways. Managers can begin fostering better relationships by caring about employees as people. Be genuinely curious about what they enjoy, what they dislike, and what their goals are. Take the time to empathize with employees and ask them what they need to feel better supported at work. The more questions you ask, the more trust you’ll be able to build.

In a Nutshell...

All five of these factors can lead to negative outcomes even before people quit, creating disengaged, burned-out, and unhappy employees. They’ll dread coming to work, they’ll feel uninterested in their tasks, and they’ll never go the extra mile. And yes, eventually, many of them will quit, leaving you saddled with the high costs of turnover. Not worth the integrity of your business and bottom line!

Top 5 Reasons Employees Stay

While it’s essential to understand why employees leave their jobs, to really get a full picture of turnover and retention, we also have to look at what makes employees stay. The strategies below are reliable ways to keep employees engaged and excited in their work and happy in the workplace.

1. Value-Driven Work for Job Satisfaction

Surveys show meaningful work is one of the most important factors that make employees want to stay at their job. People have to really feel that the work they do every day is important, impactful, and irreplaceable.

Make sure employees know how important their work is. Create a culture of value-based work that strengthens the values and behaviors that you want your employees to exhibit.

2. A Culture of Recognition

Employees also need to feel valued and appreciated. They need to know their leaders care about them and are grateful for their efforts. Employee recognition is one of the easiest and most effective ways to convey value and show appreciation.

With an employee recognition platform like Awardco, you can create programs that recognize employees for birthdays, holidays, work achievements, personal milestones, fitness goals, and job performance. When celebrations, collaboration, and recognition are a part of your company culture, everyone will be more excited to be a part of it—and stay a part of it.

3. Long-Term Benefits

According to a recent survey, over 60% of employees state that retirement benefits are a big reason they stay at their company—and 48% say that health benefits are a big reason they joined the company in the first place.

Employees need to feel that you care for them and their futures, and with benefits like robust healthcare plans and 401(k) options, you show everyone that you’re willing to invest in your employees’ long-term well-being.

Work-life balance is also a long-term benefit you can focus on, especially for employees with families. Give them the time they need to take care of children, parents, or whoever, and they’ll love you for it.

4. Advancement and Growth Opportunities

Similar to the long-term benefits, employees want to feel like they can learn, improve, and advance in the company over time. In fact, 94% of employees say they would stay at a company for longer if it helped them learn and grow. That’s amazing! 

Workplace development doesn’t just help employees feel more capable—it also closes skill gaps and helps your teams accomplish more and better things. It’s really a win-win for everyone.

5. Work Environment

This one is broad, but basically, employees need to enjoy being at work. Whether they work in an office, in a warehouse, or at home, they need to enjoy the time they spend working. Environmental factors can include things like work rules, management styles, breaks, team activities, relationships, and flexibility.

That’s a lot—so it’s best to communicate with your workforce to see what they like about your culture and what they would change. Try to adjust rules, plans, or budgets to really show employees your trust and appreciation.

Quit Contributing to Quits—Start Enticing Stays

Employee retention is top-of-mind for many companies, and there’s no one-size-fits-all solution for every company, employee, or challenge. However, understanding the common reasons employees quit or stay can help you identify potential areas for improvement. There are some universal truths you can keep in mind—employees want a purpose, they want to feel valued, and they want to improve.

As you build a culture that empowers your employees and helps them feel all those things, you may be surprised by how much your turnover rate drops.