With employee retention being so important in order to keep up with the war on talent, it’s imperative for employers to know the reasons employees are leaving companies so that they can prevent it. These reasons tend to change over time as workforce trends change. HR Bartender recently took a poll to see why employees are leaving in 2018.
There was a virtual 4-way tie for first place:
· 24% - Better compensation and benefits
· 21% - Increased opportunities for advancement
· 20% - More supportive manager
· 20% - Flexible work schedule
· 12% - Other reasons
· 3% - Better training and development
Although none of these should be surprising for the HR professional, it is a good reminder for each of us.
I’d like to address each of these issues and how employers can address them.
Better compensation and benefits – It’s important to utilize market data to ensure that you are paying your employees competitively. While several other reasons were close behind it, compensation and benefits are the number one reason employees leave a company. If you find that that your employees are consistently leaving for a better offer for the same or similar position, it’s probably time to review your total compensation philosophy and market data. (I can’t resist a shameless plug, ASE provides annual market data for over 600 positions. Our data is broken out by size of company, geographic region, and industry. We also provide benefits data.)
Increased opportunities for advancement – Employees strive to grow within their careers and preferably within their current organizations. But if that growth potential isn’t there, they can easily find it elsewhere in today’s market. Be sure that managers are meeting regularly with employees to discuss their career goals and ways that the organization can help the employee achieve those goals. When a new opportunity within your organization presents itself, be sure that employees are aware of it and are encouraged to express their interest. For key positions, consider succession planning in order to prepare employees with leadership interest for growth within the organization.
More supportive manager – Ongoing communication between managers and employees is essential for a healthy working relationship. Mangers should give positive feedback in real-time and offer constructive criticism in order to help the employee continue to grow. The employee should feel comfortable going to their manager with challenges or new ideas and know that their feedback will be seriously considered and supported. (Another shameless plug, ASE provides supervisory and other leadership training that addresses these issues to thousands of employees each year.)
Flexible work schedule – With the technology now available, remote work is becoming easier. Employees appreciate the ability to work flexible hours or remotely as needed. Working mothers and fathers appreciate being able to attend to their children as needed, and millennials specifically prefer flexible hours with remote options. While not all positions can be effective with a remote or flexible schedule, it may be important for employers to be flexible whenever they can, as this is the 4th major reason employees leave their jobs.
Other reasons – This is where exit interviews can be very beneficial. By performing exit interviews you’ll start to see trends in why employees are leaving your organization and will know when it was something out of your control. Reasons in this category could range from a spouse being transferred to a career change.
Better training and development – I was surprised this category was as low as it is. I feel that training and development is critically important for all employees, which is why at ASE we require at least one training and development event for each employee every quarter. It benefits both the employee and the organization. Employees feel valued when they know the organization is willing to invest in their continued education, and the organization knows that it’s employees are remaining current in their field.
Do you know why your employees are leaving? I’d love to hear how you track employee exits at your organization and if the results match these trends. Email me at [email protected].