High turnover is a major problem affects most industries. The national average turnover rate in 2019 was 36.4 percent, a jump of nearly 10 percent from a record of 27 percent in 2018.
The number has increased by 88 percent since 2018. Many people argue that this happens as more people, including younger employees, enter the market. They’re not sure of what they want and usually quit in a haste. However, this isn’t the main reason why the turnover rate appears to be so high.
In this article, we’ll have a look at eight reasons why employees quit while also highlighting what you can do to retain more employees.
8 Reasons Why Employees Quit
Here are eight of the main reasons why employees look for new opportunities:
#1 Not Feeling Appreciated at Work
Employees want to feel valued and appreciated. According to this Office Team study, about 66 percent of employees would leave if they do not feel appreciated at their job.
The number appears to be even higher for Millenials. According to the same study, about 80 percent of younger workers would quit if they do not feel appreciated by their leaders or colleagues.
This is a common problem where employees have to work in teams where it can be hard to give credit to individual workers for their efforts.
Employees that do not get appreciated end up being unproductive and eventually start to look for better opportunities.
How to Help Employees Feel Appreciated at Work
This problem can be solved by working on a strong employee recognition system and rewarding employees for their hard work.
This Bersin & Associates report showed there to be a strong connection between turnover rates and appreciation policies. You can reduce the voluntary turnover rate by up to 31 percent by giving promotions to those who deserve it. Chiptole was able to reduce turnover by 64 percent by offering internal promotions.
Appreciation can be in many forms including monetary rewards, an award, or just a pat on the back. At the end of the day, employees want to feel that their work is being recognized and appreciated.
#2 Lack of Opportunities
Employees want to work for a business that offers them good opportunities not only in terms of career growth but monetary benefits as well.
“It doesn’t matter if they like what they’re working on, who they’re working with and are compensated fairly or more than fairly,” says David Foote, chief analyst and research officer at Foote Partners. “They have to feel there’s something in it for them personally,” otherwise, they’ll search for better opportunities elsewhere.
Employees stuck in the same circle for a long period of time feel they’ll be doing the same thing over and over again. This causes them to lose interest and feel disengaged.
Most employees want to improve their skills, use their talents, and gather more knowledge to be able to take on bigger tasks. About 58 percent of employees feel that their companies do not offer enough growth opportunities. Moreover, little scope for growth is the main reason why 13 percent of younger workers quit.
How to Provide Employees More Opportunities
Most businesses have a rigid career path where employees end up being managers. However, not all contributors want this route and some want a non-managerial career path.
The best way to solve this problem is to have a proper plan and clearly tell your employees what they need to do in order to move ahead or get a promotion. Offering courses or learning opportunities can be another great way to retain employees.
Remember that employees who feel their strengths are being used well are 15 percent less likely to quit.
#3 Poor Relationship with the Boss or Management
Remember that 75 percent of employees who decide to quit leave because of their bosses and not their jobs. In fact, it is the number one reason why people choose to quit.
This is a major issue because working with an unfriendly or rude boss can have long-term consequences.
The relationship one has with their boss is critical to success factors including engagement, morale, and productivity. A crack in this relationship can lead to job dissatisfaction, mistrust, and anxiety.
Employees look for a friendly and inclusive environment. Issues such as sexism, nepotism, and racism can force people to quit.
“We hear every day from candidates looking for a company culture that fits with their core values. Strong leadership, open communication, work-life balance and career development are only going to become more important for attraction and retention,” said Hays US president Dan Rodriguez.
How to Improve Relationships with Employees
The most important thing is to be clear about the hierarchy and to hire the best manager. People hired to manage people must be ‘professional, friendly, and well aware of their teams.’
It might be a good idea to train your managers and teach them to handle grievances. Getting rid of unprofessional leaders may also help. After all, forty percent of employees agree that they’d return to their old job if they were good to work with a new boss. Moreover, about 92 percent say they’d stick to the same job if their bosses showed a little more empathy.
#4 Stressed or Poor Mental and Physical Health
Work can be stressful. It doesn’t only cause mental pressure but physical pressure as well.
Employees have to sit in front of a computer for hours or stand to cater to clients. This can impact their work-life balance and health.
How to Help Employees Improve Mental and Physical Health
It might be a good idea to pay attention to your employees’ struggle to manage home life and work. You have to take care of everything from the environment to workload.
Don’t put a lot of unnecessary pressure on your employees. They shouldn’t be forced to work extra hours or take on projects that they aren’t hired to work on. In addition to this, the temperature must be taken care of. A room that’s too hot or too cold can make people uncomfortable, sick, and unproductive.
Invest in good furniture that provides relief to the body. Moreover, you can go the extra mile by offering additional services to help employees destress.
“It can be as simple as having a bowl of fresh fruit in the break room. It can be something like offering a dry-cleaning service that picks up and delivers items for employees while they’re at work. Little things that emphasize the importance of work-life balance go a long way toward making employees feel that they’re not just disposable cogs in a wheel, but a valuable asset to the company, and to their families,” says Wendy Duarte Duckrey, vice president of recruiting at JPMorgan Chase.
#5 No Flexible Work Options
According to this report, about 50 percent of businesses have seen a rise in requests for flexible work, and only 33 percent seem to have approved such requests.
The situation is fast changing with more and more businesses offering flexible jobs to attract and retain employees. Hence, it shouldn’t come as a surprise that around 70 percent of new workers have considered quitting to move to a flexible job. However, that’s a perk that old employees appreciate as well.
Only 10 percent of employees like the idea of visiting the office and following traditional work hours.
How to Provide More Flexible Work Options
You can retain more employees by being flexible. This is a major change that requires months of planning to pull it off. The key lies in giving people the option to choose when and where to work for as long as they’re meeting deadlines and there are no compromises in terms of quality.
As a manager or leader, you must explain your expectations to your employees so that there are no issues.
#6 Working From Home
Remote working is a growing field. More than fifty percent of the US workforce is currently working remotely in some form. Technology has made it possible to work from anywhere. However, still, some businesses are not giving this option, which can cause employees to quit as highlighted in this Gallup survey.
In fact, this survey showed that more than 90 percent of employees are willing to change how they work in order to enable more remote work.
You should give employees the choice to work where they want to – the home or the office – for as long as they meet deadlines and stay in contact. This can help improve work life balance and make employees happier while also offering benefits to both companies and individuals.
Workers get to save time and money and businesses get more productive, loyal, and happier employees. Plus, they can also save money as fewer supplies or resources get used when people choose to work from home.
How to Enable Employees to Work from Home
More than half of the businesses in the US are currently giving the option to work remotely. If you aren’t already offering it then consider introducing a remote work policy to not only attract but also retain more workers.
Remote work is more common in some industries than others; however, the interesting bit is that you don’t have to allow employees to work remotely throughout the week to retain them. Reports say that 37 percent of workers will switch to a job that gives them the option to work remotely at least once a week.
#7 Poor Salary or Benefits
Despite what everyone says, money is a major motivator. However, things are a little different these days as only 12 percent of employees say they’d leave their job if the money is not good. In fact, 71 percent of workers are willing to move to a lower paying job if it means more ease, comfort, and growth opportunities.
This is very important because there appear to be some misconceptions. Around 89 percent of employees believe that workers quit for more money, when in reality the number is much lower.
Employees may accept a lower offer initially but they like to be paid more as they gain experience or knowledge. Companies that fail to provide the right monetary benefits to employees end up with a higher turnover rate.
How to Improve Employee Salary and Benefits
It can be a little difficult for businesses to keep everyone happy, especially since most companies are more interested in profit than keeping workers happy.
Businesses don’t only have to concentrate on the salary package. Benefits can often be as valuable as an impressive salary. Businesses can offer to sponsor education or professional development, good health insurance, decent sick days, flexible hours, good paid paternity and maternity leave, decent vacation time, and telecommuting options.
All these things matter a lot and employees usually judge businesses based on the kind of perks they offer.
An interesting thing about benefits is that they do not have to be huge to impress people. Something as simple as keeping a snack bar at meetings can be a difference maker.
Work with your team today and decide what benefits you can offer to your employees. After all, about 72 percent of workers agree that more benefits can make them more loyal.
#8 Too Little or Too Much Work
As odd as it may sound, both situations can be bad. Having too little work can make people feel disengaged and cause them to lose interest. Similarly, working too much can leave people tired, stressed, and disinterested.
This is of huge importance because engaged employees are 59 percent less likely to look for a new job.
It has a lot to do with company culture. A business that encourages employees to work and take on challenging tasks tends to have lower turnover rates.
How to Balance the Right Amount of Work for your Team
The best way to solve this problem is to offer some flexibility and let employees work according to their pace by giving them the option to choose what projects they wish to be a part of.
As a leader or manager, you don’t always have to know what your employees have to say but knowing their limitations or strengths is important.
Why Employees Quit and What You Can Do to Retain Them: Conclusion
Employee retention is a major problem that most businesses find hard to tackle. Employee turnover causes businesses to lose over $11 billion per year. We hope this why employees quit article will help you retain your skilled employees and reduce team turnover.
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