BlogsThe Top 5 Reasons Why Employees Quit Their Jobs
November 9, 2017, by John Welches
Jörgen Sundberg, one of the world’s foremost recruiters, has said that the cost of onboarding an employee is about $240,000. On top of this, the U.S. Department of Labor states that a bad hire will cost you at least 30 percent of that employee’s first-year earnings. This means that when a company is hiring an employee, it’s important to not only find the right fit for your company, but also be able to retain them for a long period of time.
But how do you do this? First, consider your company culture: is it a productive environment with motivated people working toward the same corporate goals? Having the right people in place, from the ground floor to upper management, will go a long way to accomplish this objective.
Then, it’s a good idea to know what prompts employees to leave. Having an employee quit is very costly, whether you are speaking purely financially or in terms of perpetuating a positive company culture. It pays to understand why employees quit and what you can do to avoid it. Take a look at our top five reasons for why we believe employees quit their job.
1. Company Politics
Research shows that 35 percent of employees quit because of company politics. They don’t like how the business is run or how some employees may get ahead while others can’t advance fairly. You want your employees to feel comfortable in their position and know that opportunities will come to those deserving. Open communication is key to establishing a company culture where company politics aren’t a deterrent.
2. Dislike for Boss
This is a simple one. If an employee doesn’t like who they are working for, their likelihood of quitting is increased. It’s important to have the right people in the right positions of power. Effective training and communication are also vital to make sure any supervisor is not too disliked by their employees.
3. Lack of Recognition
Employees want to feel valued. Whether it’s financial rewards, positive encouragement or career growth potential, you need to communicate value and show how much they mean to your company. Something such as your employee benefits package can go a long way in expressing value.
4. Lack of Empowerment
This accounts for 31 percent of why employees quit. Look for ways to give front-line employees some autonomy and empower them to achieve more. If you can accomplish this, great things will happen and your employees will be more likely to feel satisfied with their jobs.
5. Poor Compensation
If employees feel like they are not being adequately compensated with fair pay, bonuses or benefits, it could impact performance and lead to someone quitting in search of greener pastures elsewhere. There are many ways to compensate employees and make them feel like they are getting what they deserve.
Not only do you want to hire the right people, but retaining the best employees will impact your company in a positive way. Creating a strong company culture can help you do that.