The relationship between an employer and an employee can be compared to a partnership. It begins with mutual expectations and a sense of shared purpose. Both parties hope for a long and successful collaboration. However, challenges along the way can disrupt this harmony. Sometimes employees decide to leave a job. This raises an important question. Why do employees leave their jobs? And, what role do managers and companies play in this decision?
Did you know that, according to all Gallup research from 2020 to 2023, ‘Direct supervisor/manager or senior leadership’ consistently ranked as one of the top three reasons for leaving a job?
To better understand the complexities of employee retention and turnover, we can start by exploring the Employee Life Cycle.
The Employee Life Cycle: From Attraction to Happy Leavers
The Employee Life Cycle, as defined by AIHR, consists of seven stages:
- Attraction
- Recruitment
- Onboarding
- Retention
- Development
- Offboarding
- Happy Leavers
Each stage plays a crucial role in shaping the employee’s experience within an organization.
Firstly, the relationship between an employer and an employee begins when a candidate applies for a job or when HR professionals reach out to potential candidates. This phase is referred to as the attraction stage. If the process goes smoothly, it progresses to the recruitment stage. Once expectations align, the candidate accepts the job offer, and the onboarding process begins. While employees often feel excited and motivated on their first day, this enthusiasm tends to fade over time. To maintain engagement, it’s crucial to implement effective retention strategies and support their ongoing development.
Top Reasons for Leaving a Job
So why does motivation, which is so high on the first day, decrease over time? What happens in the workplace and why do employees decide to leave? Let’s explore Gallup’s research on the key reasons employees leave their jobs.
“Pay and benefits” are consistently the top reasons employees leave their jobs. However, leadership also plays a significant role in employee departures. Studies show 11% to 13% of employees leave due to issues with managers or leadership. Leadership-related problems are among the top three reasons employees decide to leave. This demonstrates that leadership is as important as financial benefits in retaining employees.
Promotions, assignments, and hiring decisions in management significantly shape company culture. Leadership decisions directly influence the current team and future hires. Employees leaving due to managerial issues reflect more than just their managers. These departures often highlight deeper, systemic issues within the organization. Companies must take responsibility and address these challenges systematically.
The Importance of HR Analytics and Exit Interviews
Data plays a critical role in human resources. This data must be analyzed and used to guide the organization effectively. By leveraging HR analytics to examine data from employees who have left, it is possible to identify patterns in turnover. For instance, organizations can investigate where departures are concentrated and even determine which recruitment specialist managed the hiring process.
HR analytics can uncover valuable insights. In my previous roles, I observed that employee turnover was often concentrated in specific departments or even with certain managers. At times, high turnover was even detected within the HR department itself. In such cases, it is crucial to review processes and leadership practices within the HR team.
HR analytics doesn’t just explain why employees leave; it also highlights opportunities for improvement to prevent future turnover. These insights help organizations address root causes and enhance their overall workplace culture. Data gathered from exit interviews serves as a foundation for improving employee retention and building a more sustainable organization.
Conducting exit interviews with employees leaving a job is crucial to understanding their reasons for departure. These interviews provide feedback to help companies identify workplace-specific areas for improvement. Listening to their experiences gives companies actionable insights to improve employee retention and workplace culture.
It’s crucial to ensure that employees feel heard—not just during their time at the company, but also as they exit. While these employees may no longer be part of the organization, their perspectives are invaluable. A positive offboarding process not only leaves a good impression but also ensures that former employees become advocates for the company rather than critics.
Ending on Good Terms
At some point, an employee may decide to leave the organization. When this happens, parting ways on good terms is crucial. A respectful and professional exit process builds goodwill and strengthens the employer brand. It also keeps the door open for potential future collaborations. Employees who leave on positive terms may return or recommend the company to others in their network.
Why This Matters
Employee departures are not purely individual decisions; they often reveal deeper organizational issues. Companies that prioritize financial and cultural well-being create environments where employees feel valued. By improving leadership quality, fostering supportive cultures, and acting on employee feedback, companies can drive growth.