9 Reasons Why Employees Leave Their Jobs

Over two years into the global pandemic, people are voluntarily leaving their jobs in record numbers. Described as the Great Resignation, 32.7% of employees quit their jobs in 2021. In certain sectors, like leisure and hospitality, turnover rates were as high as 67%.

Businesses pay a high price for employee turnover. The average cost of replacing a worker is one-half to two times their annual salary. But perhaps the highest price is the loss of expertise and the impact on remaining staff.

As a manager, you need to know what to do when a worker resigns. This involves more than administrative tasks and reassigning the workflow—to make the best of the situation, you should understand why employees resign in the first place.

This article covers 9 common reasons why professionals leave their jobs and what you can do to help retain workers.

1. They’re not engaged
2. They want more of a challenge
3. They’re looking for a higher salary
4. They’re seeking better management relationships
5. They need a better work-life balance
6. They’re seeking career advancement
7. They need more feedback or structure
8. They don’t mesh with the company culture
9. They’re burned out

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1. They’re not engaged

An engaged worker is enthusiastic about and committed to their work and workplace. These professionals stay in organizations longer, perform better, and experience less burnout. Unfortunately, only about 20% of professionals globally are engaged, according to a Gallup poll.

And in the U.S., 15% of workers are actively disengaged. Disengaged team members report being poorly managed and describe miserable work experiences. The good news is that you can take several actions to improve employee engagement.

• Connect to the mission. Show your professionals how their work relates to the organization’s purpose. For example, insurance agents can view their roles as helping customers recover from a loss rather than processing paperwork.
• Make the work more enjoyable. Empower workers to try new tasks, such as taking on an assignment in a different department. Granting professionals more autonomy to make strategic decisions regarding their roles also helps foster motivation. Assigning mentors can help them gain confidence and learn the ropes of a new job faster.
• Be sure to compensate people for their time. Have a policy in place that pays non-exempt workers and guarantees exempt workers time off without making them feel guilty for taking advantage of their time off. Conversely, you can make sure that both exempt and non-exempt are paid for the time they work.

2. They want more of a challenge

After performing the same job for a while, professionals look for new challenges to expand their skills. If there’s no opportunity for growth or they’re bored, they may seek a new opportunity.

Talk to your workers to see if they find their work stimulating. Give them increased responsibilities that stretch their abilities. For example, assign a team member to head a project so they can gain leadership experience.

Also, encourage your team to take professional development courses and cultivate new skills. For example, a software engineer leading a team might benefit from courses that teach them how to communicate with internal and external stakeholders.

3. They’re looking for a higher salary

In the US, the consumer price index increased 8.5% for the fiscal year ending in March 2022. If workers don’t receive raises, or if their raises don’t keep up with inflation, they may leave to earn more money. In 2021, 63% of U.S. workers who quit their job cited low pay as a reason.

But raises do more than allow employees to keep up with the cost of living. A salary increase tells your team you appreciate them and recognize their efforts. No one wants to take on more work for the same pay.

To understand how your company’s salaries compare, conduct benchmarking to see what similar organizations in your area are paying.

Although salary is important, it’s only one part of a benefits package. Other workplace trends for 2023 include:

• Remote work. During the pandemic, nearly 70% of full-time workers in the U.S. worked from home. Remote workers enjoyed saving time and money by not commuting and liked the comfort of working at home. Although most offices have reopened today, 91% of workers hope to continue working remotely at least part time. Remote work is one element of a flexible work schedule.
• Family planning and fertility. Millennials are the largest generation in the labor market today. Some employers provide family planning and fertility benefits to be competitive and present a family-friendly image.
• Wellness and mental health. Companies increasingly offer wellness benefits, such as reimbursement for health club memberships. Mental health benefits, such as a weeklong company closedown, help workers rest and avoid burnout.
• Parental leave. In the U.S., the average amount of paid maternity leave is 8 weeks, with mothers taking an average of 10 weeks paid or unpaid. But the U.S. is one of the few industrialized nations where paid maternity leave isn’t required. Federal law mandates up to 12 weeks of unpaid leave for new parents. To stand out as a family-friendly employer, consider offering a longer competitive amount of paid parental leave.
• Student loan repayment. To reduce the financial burden of student loans, some companies offer student loan repayments. In the U.S., the government incentivizes this benefit by making it tax-free for up to $5,250 per employee per year.

4. They’re seeking better management relationships

In a recent survey of full-time workers in the U.S., 82% of respondents said they might quit a job due to a bad manager. Problems with managers include feeling unappreciated, lack of feedback and direction, or being micromanaged.

If you have a department in your company with high turnover, investigate whether management is the problem. Talk to the people who are leaving and ask what would improve the work environment.

Communicate with remaining team members in the department as well. Try to get their insight on how to reduce turnover. When someone is promoted into a supervisory role, have them take a course on leadership skills for new managers.

5. They need a better work-life balance

High-achieving workers are often rewarded with more responsibility. But too many added duties can leave them feeling stressed and overworked. If long hours are part of your corporate culture, professionals might change jobs to achieve a better work-life balance.

Make sure the workload for your team members is evenly assigned. Encourage your team to log off email after a certain time, and don’t email or text them in the evening or on their days off.

A good work-life balance might also include flexible scheduling. If it’s feasible, give workers the option to work remotely one or more days each week. And rather than expecting to have a 9-to-5 work schedule, let team members customize their work hours, with core hours where everyone is available.

6. They’re seeking career advancement

If career development is important to your team members, they may leave if they don’t see advancement opportunities. Some of your best talent might be individual contributors, so managing others isn’t the next step. In this case, provide educational opportunities—like conferences, workshops, and tuition reimbursement—and new experiences to expand their skill set.

Having opportunities to advance is one factor that improves job satisfaction. In fact, according to a Pew Research study, 63% of employees said they would leave a job if there was no chance for progression.

When executives communicate competency-based skill paths, professionals can see what’s required to move to higher-level roles in the organization. A best practice is to hold managers accountable for conducting regular career progression discussions with their direct reports.

7. They need more feedback or structure

Team members appreciate regular constructive feedback. It lets them know if their performance meets expectations and where they can improve.

While 65% of employees desire more feedback, younger workers in particular prefer more frequent feedback. For workers under 30, 72% prefer to receive feedback on a daily or weekly basis. In contrast, 58% of baby boomers prefer the traditional practice of annual performance reviews.

Managers should give feedback periodically and conduct performance reviews at least once a year. This is a good time to discuss the team member’s career goals and gauge if they’re engaged or dissatisfied. Workers are about 4 times more likely to be engaged when they feel positive about feedback from their manager compared to when they feel hurt by feedback.

8. They don’t mesh with the company culture

According to the Society for Human Resource Management (SHRM), 25% of American workers dread going to work. An MIT Sloan study found that a toxic work culture is one of the top reasons for turnover and the biggest factor for departure during the Great Resignation.

According to that study, elements of a toxic culture include unethical behavior, workers feeling disrespected, and failure to encourage diversity, equity, and inclusion. If you’re concerned about the culture in your company, ask yourself the following questions:

• Do executives communicate openly with workers?
• Do professionals feel empowered to use their PTO?
• Does the company have a culture of inclusion?
• Do workers feel trusted to do their jobs, or is micromanagement common?

Leaders who are serious about improving their work environment must figure out and address which issues are causing professionals to leave.

9. They’re burned out

Burnout is caused by people not being given the proper technology and resources to complete the tasks they’re asked to perform. When a typical workweek is 50 hours or more, and professionals are expected to answer emails on their time off, the result is often poor work-life balance and burnout.

More than half of the respondents to a major U.S. study reported feeling burned out. Burnout manifests itself in feelings of emotional and physical exhaustion, combined with a sense of hopelessness.

Two strategies for reducing burnout are balancing team workloads and encouraging people to take time off. Productivity experts recommend that companies set clear policies to encourage work-life balance.

Some companies create “no-chat weekends,” discouraging workers from sending emails or chat messages during the weekend. Another recommendation is that leaders discourage emailing at night.

How to retain employees

Retaining good employees can help your business save money and avoid losing knowledgeable staff members. The U.S. Chamber of Commerce provides tips to retain valued employees.  

• Pay salaries that are above average
• Encourage employee feedback
• Allow team members to voice concerns without fear of retribution
• Avoid micromanaging
• Show appreciation and respect
• Identify and invest in high performers
• Provide flexibility regarding schedules and remote work
• Create growth opportunities

Bottom line

Many workers are leaving their current jobs for growth opportunities, better pay, and improved work-life balance. To help reduce turnover, you need to understand why staff members leave and, where possible, take steps to retain workers.

An HR consultant on Upwork can help. Whether you want to bring out the best in your people with training and development or get advice on keeping your workers happy and productive, an HR expert can help make your business an attractive workplace.