It's Not Me, It's You: 5 Frequent Causes of Employee Turnover
The days of marriage lasting forever and the days of an employee working at one company forever are long gone. Based on recent statistics, the average marriage only lasts 8 years, and let’s face it; it is uncommon for an employee to remain at one company for more than 5 years. According to the Bureau of Labor Statistics, the average employee tenure in 2010 was 4.4 years. Although companies cannot prevent employee turnover, they can take steps to reduce their turnover rate and increase employee tenure. So, why do employees choose to end the relationship and voluntarily leave a company?
Based on the results of a survey conducted by Profiles International, here are the 5 most frequently given reasons people give for changing jobs:
Today’s employees want to develop themselves to be the best they can be. They want to expand and polish their skills, abilities, and experience. Employees who feel limited and stifled get bored and will eventually start looking outside the organization to fulfill their development needs.
2. Inadequate Salary and Benefits
In the survey about 15% left because of money. Employees expect to be paid market rate, and if they feel that they are being under paid, by industry comparison, then they will start looking for employment elsewhere. Also, with rising healthcare costs, benefits are extremely important. Lack of benefits or sub-par benefits can drive an employee away.
3. Lack of Recognition
Lack of recognition accounts for why 25% of all people leave their job. Not only do employees want to be monetarily compensated for the job they are doing, they also want to be recognized when they are doing that job well. When an employee starts to feel like their efforts are going unnoticed they will either become less productive or move on to another company where they can receive more recognition.
4. Limited Advancement Opportunities
Whether it is professional or personal advancement opportunities, 20% leave their job because they feel that they are not getting sufficient advancement in their current position. After being overlooked for a period of time, an employee feels unappreciated and will, more likely than not, start looking for a new job.
5. Unhappy With Management
Based on the survey results, 30% of the people said they didn’t quit their job, they quit their manager. As the saying goes, “People leave people, not jobs.” The employee-manager relationship is one of, if not the most, important relationships within an organization. Employees can’t seem to find the door fast enough when they have to deal with poor management.
Just like with all relationship issues, you must know the cause of the issue before you can come up with a solution. Knowing the causes of employee turnover is necessary if a company wants to develop a strategy that will entice employees to stay long-term. In part 2 of this series we will cover the 6 steps companies can take to retain top talent and reduce their employee turnover rate.
Have you quit a job because of one of these reasons? What are other reasons that an employee might voluntarily leave their job? Let us know on Facebook, Twitter, or in the comment box below.