Top 4 Reasons for Employee Turnover

A 2008 Gallup Poll found that the top 4 reasons for employee turnover were career advancement opportunities, pay or benefits, and poor fit, with management issues coming in strong at 4. Since then, multiple studies have continued to find all these causes of employee turnover remaining in the top 7, consistently, for the next eight years.

It’s important for employers to understand elements that undermine longevity and increase turnover, because it impacts overall morale and productivity.

Here are the top 4 reasons given by employees about why they left their last job:

1. Career advancement opportunities. If there is no opportunity for growth or development in a position, it’s hard to retain employees with a desire to keep improving their skills and grow their careers. Some employees are happy to make lateral moves and gain skills and experience that are related to, but different from their present jobs. Others are looking to make the next move up the ladder.
2. Pay or benefits. Although it is a factor, many employers are surprised that money isn’t the biggest reason for employee turnover. Sooner or later, all employees will check the job market to see what their skills and experience are worth. If they find that they are not being paid commensurate with their value in the job market, they may feel they must seek another position in order to increase their salary or benefits to the regional average. Employees also cite pay and benefits as a reason for leaving if they feel that a colleague who puts in less effort is being compensated the same. People naturally want hard work and effort to be recognized and rewarded.
3. Poor fit. If employees are not performing a job within the area of their experience or expertise, if they don’t use the skills they enjoy the best, or if the corporate culture doesn’t fit their work habits or personality, those employees are likely to move on. This is a major reason why Step Up Recruiting is so passionate about finding the perfect fit between every candidate and position right from the start. A great fit means high morale and increased longevity!
4. Connection. Employees who don’t feel a connection to the organization’s mission or to their manager or supervisor experience higher job dissatisfaction. On a macro level, employees want to understand their purpose, and Millennials are well known for wanting their work to make the world a better place. On a smaller, more personal level, employees want clear expectations, adequate resources to do their job well, and they want to know that someone cares about and notices their effort and work product.

All four of these areas are important to most, if not all, of your employees. When you offer skills development and career advancement opportunities, fair pay and benefits compared to the local market, seek candidates who are a great fit with both the job and the culture, and offer avenues for employees to feel connected to both the corporate mission and to their team and manager, longevity will increase, and turnover will decrease!