Top 10 Reasons Good Employees Quit

Every business wants to keep their best workers around. Here are the Top 10 Reasons Good Employees Quit.

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Losing good employees is never fun and inevitably means a dip in productivity until a strong replacement can be hired and properly trained. Businesses should work as hard as possible to keep their employee turnover rate low by creating an environment that promotes loyalty. Employers who offer a positive company culture, competitive pay and benefits, workplace flexibility, and opportunities for advancement have the best chance of retaining employees. If you’ve been struggling with employee retention, read on to learn more about the reasons good employees quit.

When small businesses partner with Professional Employer Organizations (PEOs), they are able to provide quality HR support and benefits normally only within reach for large organizations. That’s why PEO clients have an average of 10-14% lower employee turnover.

Top 10 Reasons Good Employees Quit

There are individual circumstances behind every “I quit” notice, but these are the common themes we see as HR experts:

  1. The job doesn’t match the job description

The first way that a potential employee learns about a job is through the job description. When the job doesn’t end up matching the job description or quickly changes into something else, the employee may become dissatisfied and lose trust in the organization.

2. Poor fit

It’s important for hiring managers to choose candidates who are a good fit for both the company culture and the job they are being hired to do. It doesn’t matter how great a person is, if they are the wrong fit for the role they were hired to do, they are more likely to quit.

3. Sudden freeze in 401(k) matching or raises

Let’s be real: employees care a lot about pay and benefits. It can be very demoralizing and frustrating when an employee is hired with great benefits, including retirement account matching and cost of living raises and then it is suddenly taken away.

4. Lack of opportunity for advancement

Most employees want to work for a business where they feel challenged and there is opportunity for advancement. After they get up to speed on their new job, it won’t take long before they realize that there is no opportunity for promotions and start looking around for other places to work.

5. Poor work/life balance

If your business expects employees to answer calls and emails at all times of the day and night and on weekends or has a company culture that demands workers work for more than eight hours a day without paying overtime, workers may quit because of poor work/life balance.

6. Lack of recognition for a job well-done

If you’re an employee who consistently does great work, it’s only natural that you would want to be recognized for it. An employee who feels undervalued is an employee looking for another job.

7. Micromanagement

Capable employees who are micromanaged or unable to make basic decisions about how they get their work done, will quickly become frustrated. Employees want to be trusted to get the work done without a manager watching every move they make.

8. Lack of feedback and mentorship

A failure to provide regular feedback and mentorship is a major reason for employees to become dissatisfied with their jobs. Honest feedback and mentorship are important for personal and job growth and good employees will look for it – and leave when it is lacking.

9. Bad managers

A toxic workplace usually comes from bad managers. The truth is that managers have a huge impact on the workplace environment and are a big reason why employees will choose to stay or quit.

10. Feeling like all the benefits are going to the top

When employees are working hard day in and day out helping the company have a great year, they can become cynical when they think too much of the profit is going to upper management or business owners. Employers may think competitive wages are enough when employees are hoping for bonuses or profit sharing to compensate them for their contributions.

Partnering with Makai HR

Want to reduce employee turnover? We’ve got you covered through HR outsourcing! When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from payroll to taxes, health insurance/benefits and worker’s compensation. You also gain peace of mind that you are compliant with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long and changes happen). When choosing a PEO to partner with, there are many things to consider including cost, services, and technology solutions. 

With the cost of doing business in Hawaii at record highs, we know how important it is to keep labor costs in line with revenue. Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs. We offer a 100% paperless solution which means that your employees can manage their needs through a computer, tablet, or phone. We can truly improve your employees’ work benefits while freeing you up to operate your business.

What are you waiting for? Companies that partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business. Contact us today to get started!

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