The COVID pandemic radically transformed the workplace in ways we are still discovering. People who never considered working from home became advocates for remote employment and chose not to return to an office job. Many parents adjusted their lifestyles to allow one spouse to stay home indefinitely. Those who had cultivated dreams of entrepreneurship and owning a business saw their opportunity to make a move. The Great Resignation captured business headlines as companies across all industries saw their workforce walk away from traditional careers. “Quiet quitting” is an ongoing phenomenon and represents a dramatic shift in employee attitudes and priorities. These trends continue to reshape the landscape of corporate America, from the most prominent company to the smallest.
All of these changes have inspired companies to reevaluate their policies for recruiting, onboarding, and retaining quality employees. To find and keep the best talent, it is essential to understand why employees quit in the first place.
Top 7 Reasons for Quitting
Recruiting, hiring, and training new employees is costly, with the average company spending $2,000 per individual hire. Not only that, but employee turnover represents over $11 billion in annual losses. Companies need to understand why their employees quit so they can take targeted, proactive action to keep them. Here are the top 7 reasons experts say employees choose to quit:
- Toxic company culture: According to a 2022 survey, over 30% of the employees who quit in the previous 12 months listed “toxic culture” as the primary reason for their departure. Toxic culture may take the form of verbal abuse, lack of communication, discrimination, or sexual harassment – but in all cases, it creates an unhealthy, unpleasant and uncomfortable environment. Read about developing a positive company culture here.
- Management issues: In a survey of over 2,000 employees who quit in 2021, 60% blamed their manager for their departure. Managers who don’t listen to employee concerns, fail to communicate, and never provide affirmation top the list of “terrible managers.”
- Lack of appreciation: Employees leave an organization when they don’t feel their contribution is valued. Over 65% of employees say they would quit if they believed that any extra effort is unrecognized or unappreciated. Learn practical ways to avoid the “quiet quitting “phenomenon.
- Low or inadequate pay: The Pew Research Center reported that 60% of surveyed workers left their jobs in 2021-2022 because of low earning potential. With the cost of living increasing, employees need better salaries and more comprehensive benefits – and are leaving to find a company that will better compensate them for their skills.
- Experiencing burnout: When a healthy work-life balance ceases to exist – and employees feel underpaid and unappreciated – burnout can occur – causing employees to leave for lower-stress situations.
- No flexibility: When the entire workforce shifted online two years ago, employees realized that being in the office every day was unnecessary for productivity. Employees are more likely than ever before to leave their job because the company does not offer flexible or remote employment options. Learn more about communicating with your remote workforce.
- Lack of advancement opportunity: In 2021, over 60% of working adults reported that a primary reason for quitting their job was their employer did not provide them with opportunities for advancement. Employees desire upward mobility and room for growth in their career – and will leave to find it elsewhere.
Knowledge is Key to Keeping Your Best Employees
One of the best ways to improve communication, provide feedback, and recognize employees is to encourage sharing knowledge throughout the organization.
The KLONE Organizer helps business leaders establish a “culture of communication” by providing tools that encourage employees to participate in the organizational process. The knowledge portal allows employees to offer and receive feedback, seek answers to questions and learn new skills to further their careers – solving many of the issues outlined as reasons for discontent. Call today for more information on how we can help your company to retain your most valuable people.