4 Reasons Why Employees Quit
& tips to prevent it from happening
by Virginia Johnson, Marketing & Creative Coordinator, SRG
Did you know that the cost of a single employee turning over can range from 30% up to 150% of their yearly salary, depending on the level of specialization?
Turnover costs can include direct costs, such as job ads, interviewing replacements, etc. But there are also indirect costs, such as loss of productivity in the team, the expense as a new employee gets up to speed, and even the cost of a company’s reputation.
Here are the top 4 reasons employees quit their jobs and some tips on how to prevent it in the first place:
- UNCLEAR JOB EXPECTATIONS
According to Leigh Brahnam, author of “The 7 Hidden Reasons Employees Leave”, one of the top reasons employees quit is because the job or workplace was not as expected. Employers will often ‘sell’ the job to those they are interviewing, but not discuss the full job duties or the challenges they may be facing. Companies need to have full and comprehensive job descriptions and be sure that the person chosen for the position has the competencies for the position but also the attitude, willingness, and personality to meet and accept any challenges.
- NO OPPORTUNITY FOR GROWTH
If an employee doesn’t grow in their position and there are no advancement opportunities in other departments they may go elsewhere. No employee, especially a top performer, wants to remain stagnant. Organizations should create career development paths with their employees. They need to work with employees and coach and challenge them in growing in their current positions or learning new skills to advance into other roles. Top performers are often thought of as ‘low maintenance’ but that doesn’t mean they don’t need motivation and development too.
- BAD BOSSES OR SUPERVISORS
A common complaint employees make when they quit a job is that they had a terrible boss. The company favoured one employee over another; their boss threatened their job if they didn’t perform; they were devalued or unrecognized. Whatever the reason, employees often leave bosses, not the business. This can create a poor reputation for the company, as mentioned above. Employees need to have trust and confidence in their bosses and supervisors. A supervisor’s relationship with their employees plays an integral role in their happiness and motivation. No matter what the perks of the job, poor management will continually cause turnover until that supervisor is trained to work with, rather than against, his or her employees.
Although not the top factor, compensation – both non-competitive compensation and compensation that doesn’t link to performance – can be a major reason why an employee leaves a position. Studies show that a link between performance evaluations and merit increases can be very successful in motivating employees. It establishes a relationship where accomplishments are valued. As well, an organization needs to make sure they are offering competitive and fair wages otherwise they will lose their top performers to the competition. A good source for salary information by region and position is www.canadavisa.com/canada-salary-wizard.html.
Overall, you cannot control every reason employees leave, but of those that are known, you can create a plan. Consider the tips above and you can become a healthy company with engaged employees who willingly contribute to a successful and productive organization.