A high turnover rate occurs when a company is seeing multiple people leave their roles in search of a new opportunity. People quit their jobs for various reasons, including personal, professional, and organisational factors.
During the aftermath of the pandemic’s effect on the job market, a large number of employees across the UK and the US quit their jobs, in what became known as The Great Resignation.
A record 50.5 million in the US and 442,000 in the UK quit their jobs in 2022. Much like the financial crisis of 2008-09, the COVID-19 pandemic saw a standstill in people resigning before a sudden huge rise in resignations in the immediate years after.
If you are looking to decrease your employee turnover rate, you need to learn why your employees are leaving. Here are some of the most common reasons why people did so last year:
Lack of career growth
Employees often seek opportunities for career growth, including promotion to higher positions, learning new skills, or taking on new responsibilities. When employees feel they are not given opportunities for career advancement, they may start looking for jobs elsewhere.
Poor management
Poor management can take many forms, such as a lack of clear communication, micromanagement, favouritism, and lack of recognition or appreciation. Employees who feel they are not being managed effectively may become disengaged and demotivated, leading them to leave their jobs.
Low salary or benefits
Employees may leave their jobs if they feel they are not being paid fairly or receiving adequate benefits, such as health insurance, retirement plans, or paid time off. A lack of salary increase or bonus may also be a factor in a high turnover rate.
Unhealthy work environment
An unhealthy work environment can include factors such as harassment, discrimination, a lack of work-life balance, or poor working conditions. Employees who feel their physical or mental health is being negatively impacted by their job may look for other opportunities.
Personal reasons
Employees may leave their jobs due to personal reasons, such as relocation, family responsibilities, or a desire for a different work-life balance. Personal reasons may also include health issues, the need to care for a family member, or a desire to pursue a different career path.
Lack of recognition or appreciation
Employees who feel their contributions are not being recognised or appreciated may feel undervalued and demotivated. A lack of recognition and appreciation can take many forms, such as lack of feedback, inadequate training, or insufficient opportunities for professional growth.
Company culture
Company culture can play a significant role in an employee's job satisfaction. Employees may leave their jobs if they feel they are not a good fit with the company's culture, or if the company's values and mission do not align with their own.
In summary, employees quit their jobs for a variety of reasons, including lack of career growth, poor management, low salary or benefits, an unhealthy work environment, personal reasons, lack of recognition or appreciation, and company culture. Employers can reduce turnover by addressing these issues and creating a positive work environment that supports employee growth and well-being.
Our team of experts can help you find and attract top talent that aligns with your company's culture and values, ensuring that you hire the right people from the get-go. Get in touch with us today to learn more.