Employee retention has long been a significant concern for organizations worldwide. A Gallup research estimates that voluntary employee turnover costs US companies $1 trillion annually. Unfortunately, this number keeps going up every year.
The good news is this expensive problem is fixable. Identifying and understanding why employees quit can be the first step to creating an effective plan for reducing attrition and offsetting the associated losses.
1. Low salary
Unfair compensation is the top reason employees quit. According to Mercer’s 2021 Inside Employees’ Minds study, employees are resigning at higher rates than in the past to pursue higher pay because salaries have been stagnant at most companies while inflation has risen.
2. Lack of sufficient benefits
For many employees, corporate perks and benefits are just as important as their salary. Data from the 2023 MetLife’s Employee Benefit Trends Study conducted in July 2023 reveal that over 80% of US employees believe their benefits give them greater overall stability. Additionally, a 2022 Pew Research Center Survey finds that not having good employee benefits such as health insurance and paid time off at work is one of the top reasons Americans quit.
3. Feel overworked
While rewarding top performers with more responsibilities makes sense, it can often leave them stressed and burned out. Overwhelmed with the increasing demands of their job, they may decide to quit for greener and less stressful pastures.
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4. Work arrangements aren’t flexible
Employees demand a balanced work schedule. They’re not looking for a typical 9-to-5 work routine that requires them to be in the office daily. Suppose a company offers a more flexible and accommodating structure. In that case, employees are more likely to choose to work for that organization and quit an employer that doesn’t provide such flexibility.
5. No opportunities for advancement
Most employees start a job hoping they will advance in the company. But they usually get antsy when they complete two years working for the firm, and there’s no talk about a promotion. Employees seek resources to grow in their roles and will quit if not shown any growth opportunities.
6. Feel unappreciated
Nothing turns an employee off more than feeling like their hard work and contribution aren’t appreciated. Two things may happen if they consistently put in their best efforts yet get no appreciation. One, they’ll stop putting their best efforts into their work, and two, they’ll start looking for another job. A 2022 survey conducted by OnePoll on behalf of Bonusly reveals that almost 50% of American employees left a position because they felt unappreciated.
7. Poor company culture
A 2023 Survey suggests that now more than ever, employees want to feel a sense of belonging in the workplace. However, not all organizations have a positive and welcoming environment. A FlexJobs survey found that 73% of job seekers view toxic company culture as a strong enough reason to quit or avoid working for a company.
The final word
You can’t take your employees for granted, is what it comes down to. If you want talent to stay at your company for long, you must ensure that you meet their needs and give them a strong reason not to leave.
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This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.
