Top 3 Reasons Why Employees Quit Companies
According to equifax.com 41.55% of employees left their most recent organization within 6 months or less from their starting date. If you are a U.S. Company with 100 employees and an average annual salary at $40,000 a year, according to bonus.ly your turnover cost is about $620,548.
Here are the top 3 reasons why employees quit companies:
- Relationship with boss and/or coworkers. Poor management is the top reason employees leave. An employee should feel respected and valued and a layer of trust should be built with their boss and coworkers. Some of these problems are due to personality clashes and others can be tied directly to poor management of the department. If you are noticing that more than 1-2 people are leaving a department in a short period of time, you should consider either training or reevaluating the manager of the department. Also, consider utilizing personality profiles to build an effective team.
- Recognition of performance. “A pat on the back” is what many employees need to stay motivated and happy in a company. Even employees with very mundane jobs can feel very satisfied with their jobs if they are reminded why their job is so important. Managers should constantly praise good performance. Often, companies only spend time to discipline poor employee behavior, rather than recognize the A players.
- Employee autonomy and independence. Empowering and embracing employee independence can be based off of your company’s culture. If employees are feeling trapped and micromanaged they will leave seek a company to find one that will allow them to be more independent. The most innovative companies in the world often allow employees to spend days innovating and coming up with new ideas with no management intervention. Another tip: Allow employees to earn the right to work at home on certain days.