Top 5 Reasons Your Employees Are Leaving (And How to Prevent It)

When it comes to retention, employers can try everything under the sun to keep employees happy and engaged.

However, without addressing the core issues, you'll continue to struggle with high turnover rates.

Some employers don't even try everything and still assume that employees will choose to stay. But it’s vital as an employer to put yourself in your employee's shoes and understand their desire to stay committed to a company, especially in the current market. Today’s job market is very clearly candidate-led, meaning candidates have more choices than ever. When they start looking, it often isn't hard to find a package and employer brand that looks more attractive than the one they currently have.

One of the best ways to stay ahead of this competition and prevent high turnover is by being aware of the main reasons people are looking to leave and what you can do to change it. From the offset, this can sound complex, but the top reasons candidates give are simple and represent the bare minimum of what a company that expects employees to stick around should offer.

Salary

Before addressing any other components that cause employees to leave, salary will always be the top reason. In 2021, 63% of workers who quit, said low pay was the major reason (CIO).

And unfortunately, for businesses, this is becoming increasingly common because employees know they can get better elsewhere. For most industries, the market is extremely candidate-led so finding a new position with a better package isn't hard to come by. Having a competitive salary not only stops employees from being tempted elsewhere but also shows you value them, the work they put in, and their long-term commitment to the company.

Conduct regular salary reviews

Regularly review and adjust compensation based on the market and employee performance.

Offer transparent compensation packages

Clearly outline what each role entails in terms of pay and benefits. Transparency builds trust and shows employees that they are fairly compensated.

Reward contributions

Implement a performance-based reward system. Regularly acknowledge and reward employees for their hard work and achievements.

Flexibility

Flexibility has become the norm in any industry where working from home is possible. The pandemic has led to a significant shift toward hybrid and flexible working, and as a result, many employees see it as a non-negotiable when looking for a role.

We've seen many companies pushing for employees to be back in the office five days a week, leading to candidates looking elsewhere. As a company, you want to move forward, not backwards.

This may be for many reasons like tracking progress and productivity, but managed right, flexible working is the best option for not just happy employees who have the opportunity to manage work and life, as well as work in environments where they're the most productive.

CIPD found that an estimated 4 million people have changed careers due to lack of flexibility at work so it's definitely not something to ignore.

Two things you could work on is...

Focus on results, not hours

Trust employees to manage their work effectively without constant oversight. Encourage a culture that values output and results over physical presence.

Provide necessary tools

Ensure employees have the resources they need to work effectively from any location.

Progression

If employees feel they are outgrowing your company due to a lack of progression opportunities, they will leave much faster. Without clear paths for advancement, employees may feel their growth is stunted, prompting them to seek new opportunities elsewhere.

A big reason why many people move on from companies, even companies they love, is simply because there is no more progression available. So ensuring that this is in place will help some of your top performers stay much longer. In fact, PR Newswire reports that 82% of emplotees would quit their jobs because of no progression.

Create clear career paths

Develop and communicate clear progression paths for all roles within your company. Employees should know what steps they need to take to advance.

Offer regular feedback

Implement regular performance reviews and development plans. Help employees identify their strengths and areas for improvement, and provide opportunities for growth.

Promote before hiring

Show employees that there are great opportunities for advancement by prioritising internal promotions before rushing to hire.

Culture

This is a big one and a much bigger reason employees leave than companies are aware of... 73% of professionals have left a job because they disliked the company culture (Robert Walters).

Being in an environment that is dull, toxic or full of micromanagement is hard for any person to take for too long. Enjoying work should be the core standard any boss wants for their employees because it means they'll work harder, be more committed, collaborate more, and speak highly of the company to others.

Working to improve culture is probably one of the more complex things to fix because there are endless things to keep track of. But one of the best ways to start would simply be by communicating with your employees about things they think you can improve on. This can be done through 121 meetings or anonymous surveys, both being beneficial for different results and feedback.

Communicate

Regularly communicate with employees about their experiences and gather feedback. Use this information to make improvements.

Practically work on the culture

Encourage teamwork, recognition, and a supportive atmosphere. Organize team-building activities and social events to strengthen relationships.

Address toxic behaviors

This is uncomfortable, but turnover is even more uncomfortable. Actively work to identify and eliminate toxic behaviours and practices.

Management

The saying "people don't leave companies, they leave bosses" holds a lot of truth.

Poor management can significantly impact employee satisfaction and retention. Managers who micromanage or fail to support their teams effectively can drive employees away.

Invest in leadership training

Provide managers with training in leadership, communication, and conflict resolution.

Encourage trust and autonomy

Promote a culture where managers trust their employees and avoid micromanagement.

Prioritise mentorship

Ensure that managers are actively involved in mentoring and developing their team members. Provide regular feedback and support to help employees grow.

- Written by Oliver Howson

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