Photo by Towfiqu Barbhuiya
Poor management, lack of benefits, inadequate compensation. These are the most popular reasons workers vacate their positions.
They contribute to high employee turnover, meaning the rate at which people leave (for any reason) and are replaced by new hires. While high turnover can be the norm in some industries, it’s expensive. It also wreaks havoc on a company’s reputation, productivity, and morale at work.
It’s the job of the company to find out why their rates sit where they are. Exit interviews don’t always tell the whole story. Whether the employee claims they found better pay elsewhere or was let go after a particularly unproductive period of quiet quitting, there’s usually more lurking beneath the surface.
🚩 5 specific reasons for a high employee turnover rate
Few people would describe their jobs as perfect, even if they really adore their work and the company they’re with. Many would love to be paid more, have their benefits increased, or form better bonds with management. That doesn’t mean they’re thinking of leaving.
It’s the following five factors that move people past the tipping point and out the door, leaving an empty seat for their replacement.
1. Zero development opportunities
The term “dead-end job” has been in wide use for over a century. Companies that offer no career development or growth opportunities will usually blame budgets or fear that workers will want to take their new skills elsewhere.
Cost-friendly strategies like lateral moves, stretch projects, and mentorship can have the opposite effect. They’re an investment in the employee that makes them feel valued. Company fearing they’ll leave once they gain new skills? They first need to face the fact that employees are already leaving because they’re not being given any.
2. Inflexibility
Priorities are shifting, and workers frequently cite work-life balance as a primary goal. Flexible work arrangements have not been shown to decrease productivity. However, they do reduce burnout and enhance morale. That’s why denying flexibility can feel hostile.
Employees are typically aware when they’re in professions that don’t lend themselves to flexibility. If they know that hybrid, remote work, or adjustable scheduling is a possibility, and are unclear why they can’t have it, it sends a message. Their employer doesn’t respect their needs, priorities, and preferences.
3. Poor training or insufficient resources
People don’t want to “get away with” being bad at their jobs. Everyone wants to feel confident and prepared to meet their role’s requirements. When they don’t, it feels like they don’t belong and are struggling with purpose–major red flags for employee engagement.
Sometimes, it’s just not a good fit. But many others feel they didn’t get the full benefit of training, whether the material was rushed or incomplete. They may also know that they’re lacking resources to carry out their work in the most efficient way possible. If the reason for that is unclear, it can feel like sabotage.
4. Workplace toxicity
When does low morale become straight-up toxic? As the focus on a supportive company culture grows, the following traits stick out like a sore thumb, sending employees packing:
- Poor communication with frequent misunderstandings
- Feeling disrespected and excluded
- Unrelenting stress levels with increasing workloads
- Tense office politics with incessant gossip
- Lack of transparency with favoritism
5. Lack of recognition and appreciation
In many instances, the previous four causes add up to this one. More than half of surveyed employees cite a lack of recognition as a factor in quitting.
Receiving recognition for your efforts at work is highly motivating, revving performance. It gives people the confidence to find creative solutions on their own or go above and beyond. Plus, it creates a sense of belonging, strengthens collaboration, and gives people hope for their careers moving forward.
The benefits are almost endless. So why are so many struggling to get a simple thanks? Lack of support from management, poorly-constructed (or no) programs, and inauthentic “forced” recognition make it ineffective.
🤝 How to reduce employee turnover
Now that we know what many employees aren’t saying out loud, here’s the fix.
Creating a better recognition program for employees
An employee recognition program should have a structure, multiple methods of recognizing employees in place, and leadership buy-in.
More importantly, everyone should know what constitutes genuine recognition and what makes that so effective. When we laud someone’s behavior or performance, it should be specific, timely, and tailored to their preferences. We also shouldn’t neglect milestones like work anniversaries–letting people know we’re grateful to have them.
Read more about what it takes to start a successful recognition program.
Bust up toxicity with peer recognition
One of the best strategies for using recognition to improve retention (thereby reducing turnover) is to include more than one type. Peer-to-peer recognition brings coworkers together by increasing their positive interactions.
Detoxing the environment works wonders for everyday morale. Over time, employees grow accustomed to calling out their colleagues’ strengths and good deeds. They’re increasing their exposure to exceptional team qualities like trust and respect.
Start rewarding workers meaningfully
Employee gifts are great! But many workers would rather be rewarded with the very things they feel they’re lacking, like flexibility and career development.
In some scenarios, it can be even more meaningful to offer these non-monetary rewards as a trade for an awesome attitude, persistence in problem solving, or great performance. The employee knows they’re worthy and they’ve earned it. To cap it all off, they’re at a place that recognizes that.
Start incorporating even more meaningful rewards for teams and individuals.
🌮 Peer recognition, milestone celebrations, and meaningful rewards in one fun, lightweight tool
If you’ve read all this and happen to have an interest in a solution that’ll put you on the fast track to reduced employee turnover, consider HeyTaco! We’re the #1, award-winning peer recognition app for a whole bunch of reasons, including:
- Gamification that makes recognition fun (and a little competitive, in a good way)
- Integration with Slack, Google, and Microsoft that works like a charm
- Helpful analytics that let you measure your progress
- Tailored rewards that strike just the right chord in employees’ hearts
And so much more! Let us prove it to you with a free month.
Employee turnover FAQ
How to calculate employee turnover?
Glad you asked–try HeyTaco’s turnover calculator. It’s free to use.
What is the average employee turnover rate?
The average employee turnover rate in the United States is around 18-20%. This is influenced by industries where high turnover is more common. Industries not usually at risk of high turnover should aim for a rate of around 10%, although 15% is still pretty hopeful.
What job has the highest turnover rate?
Food service jobs and many others within the hospitality industry are susceptible to the highest percentage of turnover. Various positions in childcare, retail, and customer service/tech support are also known for elevated rates.
