When employees quit their jobs, this can mean a lot of trouble for companies, as they’re left scrambling to keep their operations intact. And with employee turnover on the rise, more and more companies are trying to understand how they can retain their top talent.
So, how can organisations improve their employee retention rates? And how can they keep their workforce positively engaged?
Several factors can weigh in on an employee’s decision to hand in their notice, including a lack of progression and low pay. We asked almost 1,000 people to tell us which of nine factors would most influence their decision to quit a job, and based on the findings of our first official CareerAddict study, here’s what we learned.
1. No Progression
Through our survey, we found that an overwhelming 82% of working professionals said that, without any prospects of job progression, they would consider quitting.
Employees seek career opportunities that will help them climb the career ladder. So, whether they are in an entry-level or an executive role, they desire career milestones that signify this advancement.
Consequently, when there is little room for career development, and the prospects for professional advancement are minimal, employees are bound to pursue opportunities elsewhere.
2. Low Pay
Small salaries make it easy for competitors to poach top talent with the promise of better pay. However, this isn’t always the case. In fact, when workers are intrinsically motivated to work at a company, they are more likely to take a pay cut.
A thriving company culture, a positive work environment and a fulfilling role are all factors that could counter an offer for a position with higher pay. On the other hand, if your workforce is desensitised from their work, low pay might just be the tipping point for them.
3. No Raise
For a working professional, a pay raise is a crucial form of recognition which helps them feel appreciated and valued. But when your talent’s efforts go unrewarded, this can negatively affect their loyalty to your organisation.
Based on our findings, 35% of survey participants said they would return to their former job for a higher salary. So, if you want to keep your best and brightest, it might be wise that you revisit your company’s payroll.
4. Change of Career Goals
An employee’s professional aspirations can change, leading to their imminent resignation as they set out to find new opportunities at another company, or in another industry altogether. As our infographic demonstrates, a whopping 80% said that they’d resign if their professional ambitions took a different turn.
When there is little room for development within their current position, employees might end up revaluating their professional goals altogether; flexibility can, therefore, be crucial in this case.
For example, if an employee decides they want to pursue a career that provides them with a better work-life balance, employers should cater to their needs and support their career goals. Of course, this also depends on what these goals might be, but the fact remains: employers should be supportive of their teams’ professional aspirations.
5. Bad Leadership
A good leader is an essential component of a positive work environment and a flourishing company culture. Often, high employee turnover is the direct result of bad leadership, as poor management can result in miscommunication, low morale and job dissatisfaction. It’s no surprise, then, that 79% of employees would consider quitting because of their boss, with 43% saying they would return to their previous role if their boss was replaced.
If your team is feeling unsupported and poorly guided, this calls for some necessary changes. By conducting exit interviews and feedback reviews, you begin to understand your employees’ needs as well as bridge the much-dreaded gap between management and staff.
6. Poor Benefits
Some of the most important employee benefits include performance bonuses, healthcare plans, paid time off and flexible hours. A robust benefits package is an excellent way for employers to show that they care about their staff. As for employees, these are all significant assets which boost their morale and improve their overall performance.
A poor benefits plan can be easily countered by competitors who are willing to invest more in its staff. To match your competition, then, your company will need to step up its perks and benefits game. Instead of offering your employees flashy packages, take into consideration what is truly important to them. A tailor-made benefits package will definitely win points with your staff.
7. No Promotion
When employees get passed over for a promotion, this could significantly affect their decision to stay. Indeed, the infographic shows that 77% of employees would quit if there wasn't any opportunity for promotion within the company.
While it’s impossible to promote every employee, companies can still ensure that their team is receiving proper opportunities for career advancement. This will certainly soften the blow and give your team a sense of achievement, regardless if they receive a big promotion or not.
8. Lack of Teamwork
Poor team collaboration not only hinders employee performance, but it also creates a toxic work environment. In fact, our survey found that 1 in 2 people felt discriminated against by their peers. Undoubtedly, this is a contributing factor to bad teamwork and has a direct impact on employees’ job satisfaction, which, as a result, leads to a significantly higher turnover.
Management is responsible for fostering positive collaboration between its employees, and there is a simple solution to this conundrum: effective team-building strategies.
9. Non-Flexible Schedule
Having a good work-life balance has become increasingly important within the modern workforce. It’s not surprising, then, that 77% of people say that a non-flexible schedule is another critical reason that would cause them to quit.
In order to juggle work responsibilities and personal obligations, employees require more flexibility from their jobs. A non-flexible schedule could not only cause your top talent to hand in their notice but also hinder your company’s overall performance. To keep your numbers high and your employees happy, then, work-life balance is a must!
While some employers go over and beyond to keep their workforce happy, most still have a long way ahead of them. By addressing the primary reasons that employees are likely to quit, companies can take additional measures that could help them retain their best and brightest.
Even more so, by reviewing their employees’ needs, employers can significantly improve employee job satisfaction, help their team unleash their full potential and hold on to their best employees.
Have you ever left a job? What were your reasons for leaving? Share your thoughts with us in the comments section below.