Why Employees Leave – and How to Convince Them to Stay

“After much thought and careful deliberation, I’ve decided to tender my resignation ...”

No matter how politely stated, employees who unexpectedly decide to quit make any small business owner want to scream into the void. You spent a decent amount of time and resources training them. They take valuable knowledge with them – possibly to your competitors. Plus, any business leader knows losing employees eats into your bottom line – Gallup figures it costs about 150% of the employee’s salary to recruit, onboard, and train a replacement.

There is a silver lining – the vast majority of reasons why employees quit are preventable. Employers could have retained talent in more than three out of every four cases, according to the Work Institute’s 2019 Retention Report. Here are some smart short-term and long-term strategies to keep your team from eyeing the exit sign.

Do This Tomorrow

Gather Feedback

Even if your staff turnover is on the low end, it never hurts to arm yourself with information. Have a sincere conversation with your workers after they quit. Pay attention to the reasons they decided to leave. Do preventable problems emerge? 

If you only gather feedback during exit interviews, however, you might miss the simplest solution for retaining employees. Gallup found that 52% of people who voluntarily quit their jobs felt management could have done something to deter them. But supervisors never bothered to ask them about their job satisfaction or their future with the company in the three months before they left. 

Beyond annual performance reviews, schedule regular “stay” interviews with your workers. Ask your workers what they like about the company, what they’d like to learn, and what they’d change about their role. Create a culture where people feel they can be honest – maybe brutally so.

 Check Your Management Style

As you gather regular input, you might notice patterns in your own behavior that cause conflict. While it might be tough to hear, it’s important to take such input to heart. It’s a lot cheaper to build positive relationships with your staff than grapple with a steady stream of resignation letters. 

One of the most-loathed supervisor personas is the micro-manager. Avoid this trait by making your expectations clear, then trust your workers to handle the tasks you assign. Keep channels for communication and mentorship open, but don’t hover. Accept that mistakes are inevitable, but realize they also serve as useful training opportunities. BBB’s motto is “Start With Trust,” and it’s also a good maxim for building a loyal team.

Plus, micromanaging is a one-way ticket to burnout town. If you could do everything yourself, you wouldn’t need employees in the first place. Trust in your own ability to choose the right talent.

Do This Over the Long-term

Provide Room to Grow

Can you guess the number one reason why employees quit? It’s not salary. It’s not benefits. It’s not because they think their co-workers are jerks. The top cause is a lack of career development. That’s true for men and women, for new hires as well as tenured workers, and for most generations (except Boomers, who mostly choose to depart for retirement) according to the Work Institute.

Workers want to feel like they have fulfilling prospects with your business. That means promotions, new opportunities, and developing different skills.

Fostering a culture of growth in your workplace isn’t hard, but it does take diligence. Engage with employees, help them improve, and promote from within. Develop educational incentives, whether it’s tuition reimbursement or freeing up time for them to take online courses.

 Offer Flexibility

Twenty years ago or so, most employees were willing to buckle down and cruise along the slow and steady Career Path. The Great Recession didn’t throw a blockade on that course, it blew it to smithereens.

Millennials have replaced reliable Boomers as the most significant workforce generation. This younger labor pool is a lot more flighty about work – half say they plan to leave their current job in a year, according to Gallup. Millennials want good jobs, but they also want time to explore a meaningful life. They’re tired of commuting. These days, work-life balance is the hottest job perk. Can your business handle telecommuting opportunities or variable schedules? What about generous paid vacation or family leave policies?

Don’t Let Change Get You Down

While it’s a good idea to monitor employee retention, sometimes you must accept it – turnover is inevitable. The U.S. Bureau of Labor Statistics reports 26% of employees voluntarily quit in 2017. The Work Institute figures that if the economy keeps humming, more than one out of every three workers will choose to leave their jobs by 2023 – yikes! But here’s the thing – if you build a positive workplace, sometimes they come back. Sometimes they send customers your way. Sometimes they recommend your firm to other job seekers.

While it might seem like your employee’s resignation came out of left field, people almost never make these decisions on a whim. By taking an active interest in your staff’s involvement you can intervene early. Improving your employee retention has exponential benefits – it builds workers’ skills, bolsters your business, and makes your company a more competitive choice when job hunters come knocking.