Top 5 Causes Of Employee Turnover

14664976_sThe days of an employee working for a company for several years seem to be a thing of the past. It is uncommon for an employee to remain at a company for more than five years. Based on a survey from the Bureau of Labor Statistics (BLS), tenure varies by age and the workforce landscape. The results report that the “Median employee tenure was generally higher among older workers than younger ones. For example, the median tenure of workers ages 55 to 64 [was 10.4 years] in January 2014, [which] was more than three times that of workers ages 25 to 34 years [averaging a tenure of 3.0 years].” Although companies cannot fully prevent employee turnover, they can take steps to reduce their turnover rate and increase employee engagement. But first, let’s look at five frequent reasons people leave a company or job.

1. Boredom

The employees in today’s workforce want to develop themselves into the best that they can be. They want to expand and polish their skills, abilities, and experiences. Employees who feel restrained or get bored will eventually start looking outside of the organization to fulfill their advancement needs. This boredom is also a result of poor job fit and can be avoided using effective recruitment and hiring processes.

2. Inadequate salary and benefits

According to the BLS survey, about 15 percent of participants left because of money. Employees expect to be paid market rate and if they feel that they are being underpaid (by industry comparison), they will start looking for employment elsewhere. Also, with rising healthcare costs, benefits are extremely important. Lack of benefits or subpar benefits can also drive an employee away.

3. Lack of recognition

A lack of recognition is reportedly the main reason why 25 percent of employees leave their jobs. Not only do employees want to be monetarily compensated for the job they are doing, they also want to be recognized when they are doing that job well. When an employee starts to feel like their efforts are going unnoticed, they may become less productive or move on to another company where they will receive more recognition.

4. Limited advancement opportunities

This is a big one! Whether it is professional or personal advancement opportunities, 20 percent of employees leave their jobs because they feel that there is not enough opportunity for advancement within the company or department. After being overlooked for a period of time, an employee sees their duties as redundant and will, more likely than not, start looking for a new job.

5. Unhappy with management

Based on the BLS survey results, 30 percent of the respondents said they didn’t quit their job, they quit their manager. As the saying goes, “People leave people, not jobs.” The employee-manager relationship is one of, if not the most, important relationships within an organization. Employees can’t seem to find the door fast enough when they have to deal with poor management or leadership.

It is important for managers and employees to communicate because management must know the cause of the issue before they can come up with a solution. Knowing the causes of employee turnover is pertinent if a company wants to develop a strategy that will entice employees to stay long-term.

Here are three things you can do to reduce employee turnover.

1. Hire right the first time

Hiring for job fit is the biggest favor you can do for yourself, your company, and for the employee. Using a comprehensive assessment like the ProfileXT® (PXT) helps hiring managers identify certain characteristics that are not revealed in a traditional interview setting, determines whether a candidate can perform the duties of the job, and whether the candidate will love what they do. Assessments like the PXT are crucial in helping HR in employee retention and productivity.

2. Build a better onboarding process

Onboarding is one of the most valuable processes in the employee lifecycle. According to, “it is of utmost importance to not only create but [to] use a successful onboarding program.” Your onboarding process should be simple because it helps set the tone on an individual’s first day and hopefully, for years to come.

3. Practice team building

Building a strong team is not an easy thing to do and certainly does not happen overnight. The Five Behaviors of a Cohesive Team program is a wonderful addition to team building activities like team lunches, hikes, or playing board games. Team building gives employees a chance to get to know each other outside of the high stress work environment. Programs like the Five Behaviors show participants how, as a team, they score on the key components of the model: trust, conflict, commitment, accountability, and results. It helps professionals and their organizations learn what it takes to build a truly effective and cohesive team.

If you would like learn more about how you can reduce the turnover in you organization  call Coach Michael Stelter at Advanced Business Coaching, Inc. (262) 293.3166.