Tag: employees quitting

Now that we have gotten over ourselves and our management biases and old wives’ tales, let’s look at the realities. 

We delineated what employers might believe is causing turnover.  According to recent studies and actual surveys, while pay and benefits contribute, the research shows the top reasons people actually leave jobs are:

                                                                       Pressed for time? Watch our video summary here.

1. Poor management – the main reason cited in multiple polls and studies
2. Lack of career growth opportunities
3. Feeling devalued and unrecognized
4. Work-life imbalance, overwork and stress
5. Poor company culture and work environment
6. Loss of trust and confidence in leadership
7. Lack of autonomy and empowerment
8. Feeling “stuck” with no options to change roles
9. Poor communication and transparency
10. Uncertainty about the company’s future direction

Many of these tie directly to the relationship with the manager and how the company shows appreciation. While salary attracts talent, culture, meaningful work, flexibility, care for employees and great leadership retains it. Effective listening, transparency, and reflecting the company’s values in policies make much greater impact on loyalty, innovation and the bottom line.

Let’s explore these root causes of Employee Turnover further.

Poor Management

Many employees leave due to feeling micromanaged, berated, or generally disrespected. Authoritarian bosses who rule through fear rather than inspiration create cultures where people lose passion. This chips away at loyalty and wellbeing over time. People don’t quit jobs; they quit managers.

Lack of Growth Opportunities

When employees feel stagnant in roles without room for advancement, it can lead to disengagement as work loses meaning. This stifles professional development which is deeply tied to personal identity and self-worth for many. Without growth opportunities, resignation often becomes the only path forward.

Feeling Devalued

When hard work and dedication go unrecognized, it communicates to employees that they are expendable commodities. This erodes motivation dramatically. Salary alone does not compensate for lack of appreciation. Everyone needs affirmation to thrive.

Work-Life Imbalance

Long hours and unreasonable expectations lead to increased stress, fatigue, and burnout over time. This prevents people from fulfilling responsibilities and enjoying life outside work, putting strain on family and health. No job is worth complete life imbalance.

Poor Culture

Negative office environments with toxic colleagues, gossip, and cutthroat politics wear people down. Lacking camaraderie and inclusion, people become withdrawn which hinders engagement, innovation and productivity. Poor culture steals joy, fulfillment and purpose from work.

Loss of Trust

When leadership shows blatant self-interest through dishonesty, covering up mistakes, or shifting blame, they erode critical foundations of trust. This sends people searching elsewhere, as no amount of perks can override integrity concerns. Trust is essential.

Lack of Autonomy

Micromanagement and overbearing bureaucracy constraint talent and sap intrinsic motivation. The most competent employees need freedom and authority to apply their skills. Without autonomy, passion and potential get suppressed under layers of mundane bureaucracy.

Feeling Stuck

Specialization can pigeonhole talented people, giving them little option to progress besides leaving. Similarly outdated hierarchy structures may limit mobility. When people feel trapped in positions not matching ambitions or experience, resignation is inevitable.

Poor Communication

When leadership leaves people in the dark on decisions affecting them through secrecy,clide exclusivity or constantly shifting strategies, it breeds confusion, rumor mills and disengagement. Transparency and inclusion in communications prevents disconnects.

Future Uncertainty

Lacking clear direction or reassurances during restructuring or economic troubles understandably unsettles employees. Feeling at the whim of unpredictable management leads people to pursue more secure opportunities even reluctantly. Confidence in leadership steer through chaos is vital.

Summing It Up

The common root issue underlying all these turnover factors is breakdowns in human-centered leadership, transparent communication, trust building and supportive culture cultivation. My book will provide frameworks, case studies and diagnostic tools to help leaders understand and address the deeper intricacies behind employee turnover.

In our following posts, we will begin to analyze how to overcome these turnover causes.

PRO TIP: Download Our Manager’s Guide to Self Analysis Regarding Employee Retention

 This free download contains tools an HR Consultant might use to help you identify your organization’s weaknesses in terms of retaining employees.

Up NEXT -> Stop Turnover Before it Starts – Recruit the Right Person for the Right Job

Table Of Contents

Article Home – Our Ultimate Guide To Reduce Employee Turnover and Increase Retention

TOC – Visit our Table of Contents Page for this engaging and dynamic series of informative articles about Employee Turnover compiled by our expert human resource consultants.

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Sources

The sources and end notes for the main article, this article, and all of the sub-pages is listed below.  All information is used under the Fair-Use.

Citations List & Links

Understanding the root causes of turnover is key to preventing it.

The top causes include:

• Lack of career development and advancement opportunities
• Poor compensation and benefits
• Minimal training and onboarding
• Lack of recognition and feedback
• Poor relationships with manager/leadership
• Feeling devalued or insignificant
• Poor work-life balance
• Lack of autonomy and empowerment
• Unclear performance expectations
• Lack of communication and transparency
• Poor or negative company culture
• Feeling “stuck” in role with no options to transfer/promote

Any HR analyst worth their salt, (and we have some of the best on our staff), would stress the importance of uncovering the root causes of employee turnover in your organization. Stop guessing and get to analyzing.  While exit interviews provide the most candid insights after the fact, statistical analysis of your workforce data can reveal predictive trends before retention becomes an issue. Here are some pro-tips from our analysts:

Review historical turnover figures – are specific teams, roles, or managers above average? Look for patterns.

Analyze time-to-hire and ramp-up periods for new hires. Longer durations indicate greater loss of productivity.

Compare salary bands and performance ratings of those who left versus stayed. Inequities often drive departures.

Factor in tenure alongside age and demographics. Are longer-tenured employees more or less likely to resign?

Look for correlations linking absenteeism, lower engagement scores, and policy violations to subsequent turnover. Disengagement precedes departure.

Statistically, does more turnover follow specific events like mergers, leadership changes, or new technology rollouts? Change management matters.

While statistics help us quantify the problem, conversations provide the color. Well-conducted exit interviews uncover unmet expectations, culture misalignment, insufficient development opportunities and other root causes. An unbiased third party interviewer yields the most candid insights.

Combining hard workforce analytics with qualitative data from open-ended interviews allows us to diagnose why turnover happens. This powers targeted retention strategies addressing the real underlying issues, not just symptoms.

Capturing and retaining institutional knowledge remains a challenge. Tools like knowledge management systems and wikis, thorough documentation, onboarding training, mentorships and cross-training can help but are incomplete solutions. The reality is no database can replace what a person knows intuitively from their own experiences. This makes employee retention critical.

NEXT -> Reasons Employers THINK Employees Leave

Table Of Contents

Article Home – Our Ultimate Guide To Reduce Employee Turnover and Increase Retention

TOC – Visit our Table of Contents Page for this engaging and dynamic series of informative articles about Employee Turnover compiled by our expert human resource consultants.

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Sources

The sources and end notes for the main article, this article, and all of the sub-pages is listed below.  All information is used under the Fair-Use.

Citations List & Links

Don’t Worry, Turnover Is Good!

Well, maybe it’s good.  At least some of it is good.  As HR experts, we feel it is important to clarify that not all turnover is bad. Tracking voluntary vs. involuntary turnover and rehires provides insights on “good” vs “harmful” attrition.

There is another reason turnover might be good (even if it’s the bad kind). It means you recognized it and now you can work to fix it.

For a more comprehensive discussion about turnover and what it is, you can read our Ultimate Guide To Turnover

Here’s a simple breakdown:

Voluntary turnover is when employees resign of their own accord. This can be further categorized as:

Regrettable voluntary turnover

means losing top performers you want to retain. This is the most damaging turnover.

Non-regrettable voluntary turnover

describes lower performers leaving who don’t meet expectations even after coaching. Some degree of this turnover can indicate effective performance management.

Strategic voluntary turnover

is when we allow poor culture fits to resign while focusing retention efforts on your stars.

Involuntary turnover

is dismissing employees due to poor performance or misconduct issues.

Some level of essential involuntary turnover is expected.  To go further, it is necessary and often welcomed by managers.  A good HR team will facilitate involuntary turnover when it benefits a team, department, or the company as a whole.  When this happens, it really should not be viewed by management as bad turnover or incorporated into analytics that try to tell a story about disruptive turnover.

Tracking rehires also provides context.

For example, boomerang employees returning indicates your workplace or pay may still be competitive.

The key metric is your rate of regrettable, voluntary turnover of high performers.

This signals retention problems needing action. A really good HR expert can help you analyze who is leaving and why; and then develop targeted initiatives enhancing culture, pay, development opportunities and management support.

The goal isn’t zero turnover, but minimizing regrettable loss of talent. With rigorous HR analytics, you can determine if turnover trends are constructive or destructive – and turn harmful patterns around.

If you want to start tracking and calculating your turnover correctly, read our next post here.

 

Want more Employee Turnover topics?  We’ve got ’em!  Check out our entire series available through the links below.

Table Of Contents

Article Home – Our Ultimate Guide To Reduce Employee Turnover and Increase Retention

TOC – Visit our Table of Contents Page for this engaging and dynamic series of informative articles about Employee Turnover compiled by our expert human resource consultants.

---

 

Sources

The sources and end notes for the main article, this article, and all of the sub-pages is listed below.  All information is used under the Fair-Use.

Citations List & Links

The Most Comprehensive Guide to Strategically Lower Employee Turnover and Improve HR Practices for Retention

We spent time looking into the statistics of turnover in our prior post.  We also spent a good deal of time on the fact that some types of turnover are good.  Then we helped you to understand the best way to determine your true turnover rates.  Finally, we provided you with a well cited and detailed turnover calculator to figure out exactly what turnover is costing you and your organization.  Now, we are diving into the real brass tacks:  How can I reduce and eliminate turnover? This will be done in a series of strategic posts that will help you to hone in on the real-word practical solutions to turnover that you have been looking for your whole career.

Put on your seatbelt, because our team of experts has been developing professional human resources competency for more than 100 years altogether.  We are going to give you the ultimate guide with real strategies that will allow you to bring turnover to a halt. 

What is Employee Turnover?

Turnover measures how many employees leave and must be replaced over time.

Employee turnover is the rate at which employees leave an organization and have to be replaced. Turnover is measured over a specific period of time (usually one year) and is usually expressed as a percentage.

Turnover can substantially impact organizational performance and bottom line.

Managing turnover requires understanding what causes it.

There are two main types of turnover:

Voluntary Turnover: This occurs when employees voluntarily choose to leave the organization. Common reasons for voluntary turnover include dissatisfaction, limited career opportunities, stressful work environment, or inadequate compensation. Employees may quit to pursue better opportunities elsewhere.

Involuntary Turnover: This occurs when employees have to leave the organization against their will. Common causes are layoffs, firings, retirements, or other dismissals initiated by the employer. Involuntary turnover stems from organizational restructuring, performance issues, or budget cuts.

Both types of turnover lead to vacancies that need to be filled by new hires. The costs of turnover include recruiting, interviewing, hiring, onboarding and training replacements. There are also indirect productivity costs as new hires learn their roles.

High turnover disrupts organizational stability and continuity. Loss of talented employees means loss of skills, experience and institutional knowledge. This drain on human capital can reduce innovation and growth.

What Is Attrition?

Attrition refers to the gradual loss of employees over time through voluntary resignations, retirements, firings, etc. It is the reduction in workforce due to natural causes rather than layoffs. Technically and historically, attrition is used to reference loss of personnel that is purposely NOT replaced by the company.

In other words, attrition is a reduction in headcount that the company lets happen and dos not work to counteract.

Is Attrition Different Than Turnover?

Yes. Although the terms attrition and turnover are sometimes used interchangeably, they refer to related but distinct concepts:

• Turnover considers the entire cycle of employees leaving and being replaced. It focuses on the equilibrium of arrivals vs. departures.
• Attrition solely focuses on employees that leave, rather than also incorporating replacement hires. It looks only at the outflow rather than the equilibrium.
• Turnover emphasizes the ratio of filled positions changing over time. Attrition emphasizes the absolute headcount reduction over time.
• Turnover conveys a sense of fluidity and motion, with employees constantly cycling in and out. Attrition conveys a sense of gradual shrinkage and erosion.

So in summary, turnover refers to the entire process of employees leaving and being replaced. Attrition narrowly focuses on those that leave without considering any new hires. Both measure workforce reductions, but attrition focuses exclusively on the outflows.

Is Churn the Same As Turnover?

No. “Churn” refers to customers while “turnover” refers to employees.

While churn and turnover are related concepts, they have some distinct differences.

Churn refers specifically to the rate at which customers stop doing business or end a subscription with a company. It measures the percentage of customers lost over a given period. High churn means a company must continuously acquire new customers just to maintain the same level of sales revenue.

In contrast, employee turnover refers to the rate at which employees leave an organization. It measures what percentage of staff leave during a set time period and must be replaced with new hires. High turnover signifies an unhealthy or unstable workplace.

While both concepts deal with loss rates, churn deals with the loss of customers while turnover deals with the loss of employees. They measure fundamentally different things.

There are some similarities though. Both high churn and high turnover can signal deeper issues that need to be addressed. For churn, it may reflect problems with product quality, customer service, pricing, or changing tastes. For turnover, it may indicate poor company culture, compensation, lack of growth opportunities, or ineffective management.

Additionally, both churn and turnover lead to costs for the company, such as marketing expenses to acquire new customers or HR expenses to recruit and onboard new employees. Minimizing churn and turnover helps optimize spending.

The key difference remains that churn solely measures customer losses while turnover measures employee losses. They are distinct metrics, although excessive levels of either one can hamper a company’s performance and growth. Evaluating them requires looking at different data sets and implementing different mitigation strategies.

Why Worry About How to Reduce Employee Turnover?

Employee turnover is expensive. Various studies estimate the cost of replacing an employee to be anywhere from 50% to 200% of that employee’s annual salary. This includes the costs of recruiting, interviewing, hiring, onboarding and training a new employee, as well as lost productivity while the role remains vacant. High turnover also causes the loss of organizational knowledge and experience, disrupts continuity, and can lower morale for remaining employees who have to pick up the slack. Reducing turnover has a direct positive impact on a company’s bottom line.

In addition to the financial costs, employee turnover negatively impacts a company’s culture and ability to build institutional knowledge. Relationships and rapport between team members are lost when someone leaves. Experienced employees take their knowledge with them, including information about customers, vendors, processes and why decisions were made. A revolving door of employees hinders a company’s ability to learn from experiences over time. Stability in the workforce provides time to perfect processes, improve products and services based on feedback, and leverage what has worked well.

When employees leave, their institutional knowledge leaves with them.

Some examples of lost knowledge include:

• Knowledge of key contacts such as vendors, partners and clients
• Understanding of company systems, software, processes and infrastructure
• Awareness of why past decisions were made
• Familiarity with day-to-day responsibilities and tasks
• Historical interactions with various teams or departments
• Access to past communications, data or documents

Encouragement for Leaders

Now is the time for decisive action to engage your people for the long haul.

Losing top talent to “greener pastures” saps company knowledge, productivity and culture. Recruiting and onboarding replacements strains time and budgets. Yet quick fixes like across-the-board raises temporarily mask deeper issues driving turnover.

The hard truth? Retention starts from within. Analyze your culture honestly – do employees feel valued, trusted, heard? Do leaders model empathy, integrity and work-life balance? Or does overwork and favoritism spread?

Probe for root causes of resignations. Compensation often tops the list, but dig deeper. Do exit interviews reveal poor management, lack of recognition or unhealthy team dynamics? Preventable turnover indicates areas needing change.

Cultures thriving on collaboration and transparency retain innovation and experience. Employees give their all when they feel cared for holistically, not just regarded as “resources.”

As an organization’s heartbeat, you set the tone. Double down on onboarding new hires effectively and celebrating tenured employees. Keep listening and taking action on engagement survey feedback. Lead with the wisdom that businesses don’t succeed – people do.

The cost of inaction is continual talent bleed. But united in purpose, engaged teams transform companies. They propel competitive advantage that no competitor can replicate.

Take pride in the privilege you have to steward an environment where all employees reach their potential. The dividends to your culture and bottom line will astound you.

Explore Our Ultimate Guide To Employee Turnover

And find the right answers to your questions and then utilize the amazing strategies from our experts.  We are confident you will find the solutions to all of your problems.

Table of Contents:

Main Causes of Turnover and Institutional Knowledge Loss

Reasons Employers THINK Employees Leave

The Real Reasons Employees Actually Leave

Stop Turnover Before it Starts – Recruit the Right Person for the Right Job

Get Onboarding Right and Turnover Will Reduce Itself

Offer Pay that Keeps Up with the Market to Avoid Bad Turnover

Craft Benefit Plans That Attract Good Employees and Work Against Turnover

Create a Company Culture On Purpose

Build Teams & Company Unity That Will Prevent Turnover  

Transparency is Key to Superpower Employee Retention and Reduce Turnover

The Trust Gap Problem That Is Causing Your Turnover

Don’t Let a Toxic Workplace Spread Into Turnover

Be the Boss You Want to Have and Reduce Turnover

Empowering Employees Will Lower Turnover

Recognize Good Employees and Reward Good Behavior

Make Work-Life Balance a Real Thing In Order to Stave Off Turnover

Make Your Workplace Flexible

Employee Engagement Matters…A Lot

Performance Management Is an Everyday Thing That Can Reduce Turnover

Be Purposeful About Succession and Career Pathing to Lower Turnover Rates

Encourage Professional AND Personal Development To Raise Retention

Personal Development… At Work?

Provide Training On Interpersonal Skills To Stop Turnover From Pervading

Do Exit Interviews To Reverse Turnover

          

Do Stay Interviews and Stop Turnover In Its Tracks

Sources & References

The sources and end notes for this article and all of the sub-pages is listed below.  All information is used under the Fair-Use.

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