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10 Reasons Employees Resign

Good managers know very well how expensive employee turnover can be and work diligently to keep those costs to a minimum. It is a fact that not every employee can be retained no matter how fairly they are treated, and some are actually welcome to leave.

It's no secret that the cost of employee turnover is expensive. Aside from the obvious financial cost of replacing them, an employee's departure can negatively impact the morale of their fellow colleagues, causing even more damage to their workforce. Given the high cost of attracting, hiring, and training employees, it pays to keep employee retention strategies top of mind. Are you struggling to keep your best employees? Here are 10 common reasons why employees leave their jobs, and how to reduce the turnover of your valued people.

10 Reasons Why People Leave Their Jobs

1. Employees Feel Underappreciated and Undervalued

Employees need to be reminded from time to time that their contributions are valued. Showing appreciation doesn't necessarily have to be over-the-top awards or financial incentives; it can be as simple as verbal recognition, and providing positive feedback.

2. Lack of Proper Compensation and Communication Around Compensation

Fair compensation is a key factor in reducing turnover. That being said, it's equally important to be transparent about salary raises, and to provide a rationale if a salary increase is denied. If employees are provided with clear communication and transparency around compensation, they'll feel respected by their employer and will be less inclined to jump ship.

3. Insufficient Work-Life Balance, Time Off, and Flexibility

Gone are the days of expecting employees to be tethered to their desks from 9-5. With many people working remotely during the pandemic, and having to balance their work and home lives, employees are seeking out companies that allow for more flexibility around their work schedule, location, and hours. Your company will benefit from providing a generous amount of time off and flexible scheduling even after the pandemic is over.

4. Change In Management and Restructures, Without Proper Communication

Companies that fail to properly plan for and communicate organizational changes risk losing valuable employees. Part of change management involves coaching those most affected by the change to keep morale up, and ensure a smooth transition. While you may not have all the details, the more information that can be provided, the better!

5. Outdated Machinery and Equipment

Whether it's warehouse equipment or laptops, antiquated or hard-to-use tools can play a major role in employees running for the door. Business technology is now central to how organizations are run, from improving business processes, to how we maintain communication while working remotely. Replacing workers who are frustrated by outdated technology may prove to be more expensive in the long run than replacing the tools.

6. Unrealistic Goals and Performance Objectives

Setting realistic performance objectives is important for both employee morale, as well as your company's financial goals. That being said, these goals should be realistic and planned well in advance. Celebrating employees when they hit their targets will help with employee retention, because they'll feel appreciated within the organization. After all, an employee's individual success contributes to the overall success of the company.

7. Lack of a Clear Path for Career Advancement

Closely tied to performance objectives is providing employees with a clear idea of what an internal promotion looks like for their position, and what they can do to get there. This is a proven way to retain employees while keeping them motivated. Without clear direction, they may feel lost, and seek advancement elsewhere. Companies can reduce turnover by creating a path for employees to move up the ranks internally.

8. They Feel Unsupported by their Managers

As the old saying goes: "people leave managers, not jobs". One of the biggest factors that contributes to employee turnover is bad managers. If your company has a staff retention problem, consider investing in training your managers on how to ask for feedback, admit mistakes, and adapt their management style to the employee, as opposed to a "one size fits all" approach.

9. The Company Has Weak Branding

Now more than ever, employees care about their company's values and reputation. Simply put, company branding is how your company is perceived by the public, and what employees can expect if they choose to work for you. Branding may include being vocal about social issues, supporting working parents in the organization, or promoting perks like gym access or free lunches. The purpose of employer branding is to attract applicants who identify with these values. That being said, it's crucial that these values are authentic, or new employees will feel led astray, and they might decide to leave.

10. Employees Don't Feel Challenged

It's common for a bored employee to seek out a new, more challenging position elsewhere. While every job entails some repetition, an effective way to retain employees is to provide them with more challenging tasks or stretch goals. It demonstrates that you trust them and encourage them to get creative and continue developing.

Companies spend a lot of time, energy, and money to attract and hire the right people, so it pays to put employee retention strategies at the forefront of your business!

How your people feel about working at your company matters to the health of your business.

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