It’s no secret that American employees are quitting their jobs in droves since last summer. Approximately 4.3 million Americans quit their jobs in January, officially pushing the “Great Resignation” into 2022. January’s numbers marked the eighth straight month with more than 4 million people quitting. Despite all the resignations, unemployment rates remain low as people jump straight into new job positions. Employee retention is as important as ever – high employee turnover is very expensive and hurts productivity. To prevent workers from quitting, employers should know the top reasons employees are quitting their jobs so they can address those potential issues within their own organization.
Top 6 Reasons Employees Are Quitting Their Jobs
A new Pew Research Center survey found that there were three main reasons that employees cited for quitting their jobs in the last 12 months: low pay, a lack of opportunities for advancement, and feeling disrespected at work. At least a third of survey respondents said that all three of these issues were major reasons why they quit. The next three most important factors were child care issues, lack of flexibility, and poor benefits.
The majority of the workers who quit are now working for different companies where they say they have better pay, more opportunities for advancement, and more work-life balance and flexibility. The bottom line? Employees are quitting for the greener pastures that are out there.
Sixty-three percent of the workers who quit their jobs in 2021 stated that low pay was a factor. The bottom line is that workers are there for a paycheck and many got tired of working for companies that weren’t paying them a living-wage. While wage increases haven’t kept up with inflation, there are plenty of companies offering higher wages than there was pre-pandemic.
No opportunities for advancement
Sixty-three percent of the workers who quit their jobs recently stated that lack of opportunities for advancement within the organization was a problem for them. Lack of opportunity for advancement has always been a factor in employee attrition, but workers have more options today with so many businesses hiring.
Feeling disrespected at work
Fifty-seven percent of the workers who quit their job in the last year stated that feeling disrespected at work was an issue. Everyone wants to be valued and treated with respect; with so many job openings it’s no wonder that people are leaving for companies that will treat them better.
Child care issues
Forty-eight percent of those with a child younger than 18 in their home stated that child care issues were a reason they quit their job. With childcare workers quitting at high rates since the pandemic began, it’s no wonder that parents are struggling to find childcare.
Lack of flexibility to choose their hours
Forty-five percent of the workers who quit their job in the last year stated that lack of flexibility to choose when they put in their hours was a factor in their decision to quit their job. With so many workers getting a taste of the benefits of working from home during the pandemic, it’s no wonder that they are looking for job opportunities that will offer more flexibility.
Lack of good benefits
Employees are tired of working jobs that don’t provide the benefits they need for a happy life. Forty-three percent of workers who quit in 2021 said that not having good benefits such as health insurance and paid time off was a factor in why they quit.
Some other things to understand about employees who quit their jobs in 2021:
About 53% of adults who quit their job in 2021 and who are working at new jobs say that they changed their field of work or occupation. This is especially true among workers under the age of 30, for adults without a postgraduate degree, and those who work low-income jobs. The restaurant industry has been hit especially hard by mass resignations, with many long-time restaurant workers moving on to jobs outside the industry.
Need better employee benefits to attract and retain top talent? We’ve got you covered through HR outsourcing! When you partner with Makai HR you gain access to health care plans that would normally only be available to large businesses. We take care of your employee needs from payroll to taxes, health insurance/benefits and worker’s compensation so you can focus on running your business. 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 run 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!