Seven lessons: Why employees leave

Learn why top performers move on to other opportunities — and what you can do about it

Leigh Branham

When a top performer leaves, the impact can be devastating, often costing one to three times the individual’s compensation in lost productivity, replacement costs, or even worse, lost customers.

While 88 percent of employees leave for reasons unrelated to pay, nine out of 10 managers believe pay is the main reason employees leave. There are seven fundamental reasons why employees leave. As you consider each one, ask yourself, “To which of my employees might this reason be a critical issue?”


REASON 1: Job or workplace was not as expected
About 35 percent of American workers quit in the first six months because they have unrealistic expectations about the job or workplace.

What to do: Give job interviewers a “realistic preview.” Describe the demands of the job in detail, and find ways to let job candidates experience the job before hiring them on full-time.


REASON 2: Mismatch between job and person
We hire and promote hurriedly and carelessly, putting people in jobs where their talents are underutilized or where they are in over their heads.

What to do: Use multiple interviewers, ask behavior-based questions, use pre-hire personality assessments, and check references with skill and persistence.


REASON 3: Too little coaching and feedback
More than 60 percent of employees — especially employees in their 20’s — say they don’t get enough feedback.

What to do: Train all supervisors to give constructive feedback, so they can overcome their reluctance to provide it. Training should call for frequent, specific feedback, careful listening, and forming adult-to-adult partnerships, not parent-child relationships.


REASON 4: Too few opportunities for growth and advancement
While 85 percent of employees say career growth is a key reward, only 49 percent say their employers are providing it. Employees at larger companies often complain about being blocked by their managers from moving laterally and across functions.

What to do: Smaller businesses have the advantage of letting employees wear several hats, thus using and developing a broader range of abilities. Leverage this advantage by letting employees try out new roles, take on new projects, and have more contact with customers. Ask them about their career aspirations and what they would like to learn right now.


REASON 5: Feeling devalued and unrecognized
There are at least a dozen ways workers feel devalued besides low pay. They include not being acknowledged for a job well done, not being treated with respect, not receiving the right resources, and having to work in unacceptable physical work environments, to name a few.

What to do: Practice saying “thanks” every time an employee makes a contribution. Ask your employees what they need to help them do their jobs better and what would improve the workplace. Then listen carefully to their ideas, and implement as many of their suggestions as possible.


REASON 6: Stress from overwork and work-life imbalance
More than 40 percent of Americans say their jobs are extremely stressful. Another 70 percent say they don’t have a healthy balance between work and personal lives.

What to do: Meet with employees to find out more about the challenges they face outside of work. Provide more scheduling flexibility to those who need it and more staffing support, if possible, to those who are overworked.


REASON 7: Loss of trust and confidence in senior leaders
Employees with high trust levels outperform those with low trust levels by 186 percent, yet only 39 percent of American workers trust their senior leaders.

What to do: Give the gift of time and availability: Interact daily with employees at all levels. Build trust by being open with information, listening, and acting on their concerns. The most powerful solution to employee turnover revolves around the simple intangibles – quality, consistent management and a healthy culture. Focus on these basics and watch your retention rate rise.


 

Leigh Branham is managing principal of Keeping the People, Inc., Overland Park, Kansas and the author of three books on employee engagement and retention, including the recently updated second edition of The 7 Hidden Reasons Employees Leave (AMACOM, 2012). Have a question? Visit www.keepingthepeople.com, or email Leigh at lb@keepingthepeople.com.

 

April 2013
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