WHY EMPLOYEES LEAVE THE COMPANY

 WHY EMPLOYEES LEAVE The Company

Employees leave organizations for all sorts of reasons Some find a different job, some follow a spouse who has been transferred to a different location, some retire, some get angry about a work-related or personal issue and quit on impulse, and some  simply decide they no longer need a job (these categories of departure are referred to as "voluntary turnover"). Still others get fired or laid off by the organization (referred to as "involuntary turnover"). 

Generally, an individual will stay with an organization if the pay, working conditions, developmental opportunities, etc., are equal to or greater than the contributions (e.g., time and effort) required of the employee. These judgments are affected by both the individual's desire to leave the organization and the ease with which he or she could depart.

employees typically follow four primary paths to turnover, each of which has different implications for an organization:

Employee dissatisfaction. Attack this issue with traditional retention strategies such as monitoring                        workplace attitudes and addressing the drivers of turnover.

Better alternatives. Retain employees by ensuring that the organization is competitive in terms of rewards, developmental opportunities and the quality of the work environment. Be prepared to deal with external offers for valued employees.

A planned change. Some employees may have a predetermined plan to quit (e.g., if their spouse becomes pregnant, if they get a job advancement opportunity, if they are accepted into a degree program). However, increasing rewards tied to tenure or in response to employee needs may alter the plans of some employees. For example, if a company is seeing exits based on family-related plans, more generous parental leave and family-friendly policies may help reduce the impact.

A negative experience. Employees sometimes leave on impulse, without any plan for the future. Generally, this is the result of a negative response to a specific action (e.g., being passed over for a promotion or experiencing difficulties with a supervisor). Analyze the types and frequencies of work-related issues that are driving employees to leave. Provide training to minimize prevalent negative interactions (e.g., harassment, bullying, or unfair and inconsistent treatment) and provide support mechanisms to deal with those problems (e.g., conflict resolution procedures, alternative work schedules or employee assistance programs).

 

Additional predictors of turnover that merit careful attention include:

• Organizational commitment and job satisfaction.
• Quality of the employee-supervisor relationship.
• Role clarity.
• Job design.

Workgroup cohesion

 1. Less flexibility: the price of going back to the office 

Accustomed to flexibility in location and hours, remote work is a core reason people choose to leave. One survey showed how  1 in 3 office workers are willing to quit if their organization ends the WFH mode. 

Even before COVID-19 struck, 94% of respondent’s employees wanted flexibility. It’s easy to understand why the idea of mandatory in-office work isn’t exactly hitting home. We had to switch to work from our homes manically and unprepared at the beginning of 2020. It took a while to get used to it, and now you’re asking us to go back to the office? This year and a half proved to office workers that they could take their laptops and work from anywhere in the world. 

The younger talent force is also increasingly looking for autonomy and trust from management. Organizations that can afford to let people work remotely. but insist on physical presence at the office will face low employee retention.

2. People are tired: burnout-fueled resignations

COVID-19 canceled most sources of downtime like vacations in 2020. And our research survey showed that sick time was vastly under-utilized and is hurting people. Many workers gave up their vacation time last year...and even if they did take time off, it was probably a satiation close to home without the company of family and friends. 

The lack of real, restful rest means that people are finally prioritizing mental health, and some are opting to leave their jobs for an extended break to deal with overwhelming fatigue.

3. How we’re treated: culture and leadership 

While the worst of the pandemic is hopefully over, employees do remember how their leaders treated them during the lowest of lows. The untrusting, abusive side of employers who didn’t provide support or reassurance during the crisis was unveiled, meaning employees are naturally seeking more people-centric workplaces where they can grow their careers.  

 

4. Introspection = career clarity 

Have you learned more about yourself from the isolation last year? As the world was disrupted and turned upside down, suddenly, our daily lives were put on hold too. They were forced to sit with themselves, and all workers said the pandemic had pushed them to re-evaluate their career goals. And with the challenges from industries such as hospitality and travel, 48% are rethinking the type of job they want altogether. Not surprising.

 5. Strong competition: The market is opening up again

There’s no more need for speculation; the war for talent is already here. Just over one year ago, the global market was in a terrible place, and we were forced to pivot to flight or fight mode. Millions of people lost their jobs, and those who kept them felt like it was too risky to move. 

A year later, things are moving fast. Industries like the restaurant and event industry are now competing heavily against each other for the bounced-back demand of workers. We’re at the peak of hiring demands with millions of job openings as countries open back up. New opportunities after lockdown are enticing—let alone the known fact that an effective way to increase your compensation is to switch jobs.

References

SHRM(2022) Managing for Employee Retention https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/managingforemployeeretention.aspx

Oracal (2022) What Is Employee Retention? Benefits, Tips & Metricshttps://www.netsuite.com/portal/resource/articles/human-resources/employee-retention.shtml

Indeed Editorial Team (April 13, 2021 )11 Benefits of Employee Retention (Plus Definition) https://www.indeed.com/career-advice/career-development/benefits-of-employee-retention#:~:text=Retaining%20your%20employees%20can%20ultimately,costs%20and%20optimized%20employee%20productivity