Why Employees Quit: Decoding the Exit Door

By: Dr Jorge Del-Bosque

As every HR professional knows, Employee Turnover or Attrition is a persistent and high-priority issue that can directly impact an organization's bottom line. However, companies often ask to retain top talent: "Why do employees leave?"

Job Satisfaction: Worker delight or dismay?

The link between job satisfaction and the intention to quit is clear and well-established in academic literature (1). People are much more likely to leave their job if they don't find it satisfying.

Growing Pains: Lack of Development Opportunities

Imagine being stuck in the same role for years without a clear career progression path or opportunities for skill enhancement. Sounds frustrating, right? A study by PwC(2) evidences that employees crave professional growth and value learning opportunities. Companies that fail to offer this are at risk of increased turnover.

Show Me The Money: Compensation Matters

Who doesn't like a good paycheck at the end of the month? But what if it's not 'good' enough? Insufficient compensation can create dissatisfaction, leading employees to explore other opportunities. A meta-analysis confirms the strong correlation between pay satisfaction and turnover(3).

The Manager Factor: Leadership's Role

"People leave managers, not companies," they say, and the data backs this up. A report by Gallup(4) highlighted that a staggering number of employees have quit jobs to escape their managers. Clearly, good leadership is not just desirable but crucial for employee retention.

More on Leadership at: [The Power of Transformational Leadership: Inspiring Extraordinary Achievements]

Work-Life Balance: More Than Just a Buzzword

In the hustle and bustle of today's world, maintaining a healthy work-life balance is more important than ever. A survey by Deloitte(5) revealed that millennials and Gen Z prioritize work-life balance in job choices, implying that a lack of it could lead to turnover.

Cultural Fit: A fish out of water?

Feeling like a misfit in an organization? That's a red flag for many employees. Studies reinforce the importance of person-organization fit in retaining employees(6) and its influence in increasing employee commitment(7).

Job Insecurity: An Unsettling Factor

Nobody likes to feel they're walking on thin ice. A feeling of job insecurity can lead employees to look for more stable opportunities. A meta-analysis of 87 studies(8) highlighted the positive relationship between job insecurity and turnover intention.

In the end, while these reasons are crucial, it's essential to consider that every employee is unique, and their reasons for leaving may differ. Regular exit interviews and engagement surveys can provide insights into the specific reasons employees leave, helping organizations improve their retention strategies.

References:
  • (1) Tett, R. P., & Meyer, J. P. (1993). Job satisfaction, organizational commitment, turnover intention, and turnover: path analyses based on meta‐analytic findings. Personnel Psychology, 46(2), 259-293.
  • (2) PwC 2017, Workforce of the Future. Retreived from PwC.
  • (3) Gerhart, B., & Rynes, S. (2003). Compensation: Theory, evidence, and strategic implications. Sage.
  • (4) Gallup 2015, The state of the American Manager. Retreived from Gallup.
  • (5) Deloitte Global Millennial Survey 2019. Retrevied from Deloitte
  • (6) Kristof‐Brown, A. L., Zimmerman, R. D., & Johnson, E. C. (2005). Consequences of individual's fit at work: A meta‐analysis of person–job, person–organization, person–group, and person–supervisor fit. Personnel Psychology, 58(2), 281-342.
  • (7) Ambrose, M. L., Arnaud, A., & Schminke, M. (2008). Individual moral development and ethical climate: The influence of person–organization fit on job attitudes. Journal of Business Ethics, 77, 323-333.
  • (8) Sverke, M., Hellgren, J., & Näswall, K. (2002). No security: a meta-analysis and review of job insecurity and its consequences. Journal of occupational health psychology, 7(3), 242.

Author Profile: Dr Jorge Del-Bosque is the founder of Nanu, a startup on a mission to improve people and workplaces using Human-Centered AI. He holds a PhD in Computational Linguistics and an MSc in Management and Organisational Innovation from Queen Mary University of London. Throughout his 8-year career in the Learning & Development sector, he developed online training and development programmes for top financial, tech and manufacturing companies. He is a three-time finalist in the World Triathlon Championship Series.