A recent Gallup survey reported that more than half of employees are thinking about or actively thinking about a new job — at the highest level in a decade. When people leave voluntarily, your investment walks out the door. It can set you back and be expensive to refill positions.
But it doesn’t have to be that way.
In that same survey, 42% of employees who left their organization said their company or managers could have done something to prevent them from leaving.
This article explores the top reasons employees leave, from lack of communication and transparency to challenges in organization and convenience. By understanding these drivers, companies can proactively address areas of dissatisfaction and create a supportive, engaging workplace.
1. Organizational Challenges
The modern workplace is facing significant organizational challenges. Whether it’s remote working environments, downsizing, or office relocation, it’s changing the way employers and employees communicate.
A lack of communication and positive interactions is one of the key reasons employees leave.
For many employees, the past few years have been a bit of a rollercoaster ride. Shifting to remote and hybrid work was a major transition, creating a more distributed workforce. While employees liked the flexibility, many became isolated due to a lack of communication.
Now, more companies are demanding workers give up that flexibility and return to the office, creating hardships for employees who have adjusted to a new work-life balance.
Solving these challenges requires transparent communication and explaining the logic behind assignments and work environments. Regular dialogue and positive interactions must be needed to reduce turnover regardless of where employees work.
2. Lack of Career Opportunities
When employees see a pathway for growth and advancement within an organization, they are more likely to stick around and be more engaged in their jobs. A Pew Research survey showed that about a third of employees quit their jobs because of a lack of career growth.
Companies with low turnover invest in developing career paths for employees, helping them learn the skills they need to advance within the organization. They provide regular feedback with the goal of improvement rather than criticism to position employees for success.
3. Inadequate Compensation
Money is always part of the conversation, and turnover usually follows when salaries don’t align with jobs or the market.
After years of minimal wage increases, the last four years have seen significant jumps, especially among low-wage workers. It can be an issue if you aren’t keeping up with what competitors are paying for similar roles.
Another problem is the lack of clear wage tiers. Whether you like it or not, employees talk about how much they’re getting paid. If you do not have a consistent approach to pay rates, you’re asking for trouble.
Solutions include benchmarking competitor wages and making adjustments as necessary to stay current with market opportunities. You should also have a framework to ensure your wage structure makes sense. If employees can see a logical reason behind wages, they are more likely to be happy with what they are making.
4. Bad Bosses
Leadership is more important than ever, and poor leaders are driving employees away. According to a LinkedIn survey, nearly 70% of workers say they would quit their jobs because of a bad manager. Gen Z and Millennials reported even higher numbers.
Companies need to be proactive about training their leaders and giving them the tools to manage more effectively. Unfortunately, many companies don’t do that or have no proper mechanism to evaluate their management.
Measuring turnover rates by the manager and comparing them to industry benchmarks is a good start. Regular assessment of managers is essential. You can use Gallup’s framework from tens of thousands of employee interviews as a guide. Employees overwhelming say the best bosses can:
- Motivate employees
- Solve problems to remove obstacles
- Create a culture of accountability
- Build relationships that enhance trust
- Make unbiased decisions
5. Burnout and Stress
The Society for Human Resource Management (SHRM) tracks mental health in the workforce, and 2024 mid-year surveys showed concerning levels of stress and burnout. 44% of employees said they felt burned out, and 45% said they felt emotionally drained from their work.
That’s a recipe for turnover.
Workers who feel burned out are nearly three times more likely to actively search for another job.
Recognizing and addressing burnout is essential to create a healthy work environment. Setting clear expectations and goals helps, but only if they are realistic and employees feel they get the support they need to accomplish them.
Leaders must be empathetic and honest about what they are asking their team to do and create an open dialogue to avoid unnecessary stress.
6. Managing Change
If there’s one constant in the workplace these days, it’s change. Yet fatigue sets in when people are constantly exposed to change initiatives without adequate support.
It can be exhausting and cause people to check out, assuming that whatever they’re doing now doesn’t matter because more change is coming anyway.
Managers need to think beyond the change itself and understand its impact on employees. A proactive approach to change management must be part of the equation. Be transparent about changes and the reasons behind them. When employees understand why you’re changing course, the benefits of doing so, and the consequences of not changing, they are more likely to accept it.
The Harvard Business School outlines five key steps for effective change management:
- Prepare your organization for change
- Create a vision and plan for change
- Implementation
- Embedding change with culture and practices
- Reviewing progress and analyzing results
While many managers focus only on step three—implementing the change—this framework shows the work you have to do before and after implementing change initiatives.
7. Let Them Know They Matter
Study after study shows that one of the most important things you can do is to let employees know they matter, acknowledge what they do, and be honest about expectations. When you can connect their role with how it impacts meeting company objectives, they are more likely to engage, which provides a greater sense of importance.
Engaged employees are less likely to leave.
Conclusion
Some turnover is inevitable. In some cases, bringing new ideas and energy into an organization can even be healthy. However, too much turnover or the wrong kind of turnover can hinder one’s ability to meet one’s goals.
Leaders need to understand the key factors that accelerate turnover and take proactive steps to create an environment and culture in which employees want to work.
Also Read: Ensuring the Safety of Your Employees: A Guide for Business Owners
