Why Do Employees Leave an Organization?

by Jody Ordioni

It is an open secret that retaining the talent of the company profits it in every way that counts. Society for Human Resource Management (SHRM) estimates that the departure of a salaried employee costs the company four to nine months of that employee’s salary. While all employers might not limit themselves to the turnover, the failure in retention also has other consequences. It can create a never-ending cycle of employee burnout that can further strain any business, socially and economically.

Retention is a crucial element for employers’ well being, but there are evidences implying that staying in a company might not always benefit an employee. Unwavering employee loyalty comes in lieu of detrimental costs to the employee- fiscal, emotional, and professional costs.

Salary and Benefits Favoring Employees

According to an article in Forbes 2014, employees who stay at the same job for more than two years usually earn 50% less over their lifetime. Even the average yearly raise they receive is a mere 3%; compared to 10-20% of those who leave for new positions. Unstructured pension plans and low pay at entry-level and mid-level jobs are other reasons why employees consider changing company is essential. The simplest solution to retain employees, in this case, is to offer promotions.

However, this can remain out of reach due to plenty of reasons. Thus, employees believe leaving is more apt than waiting in an environment with no structure. Moreover, workers with different profiles require different benefits from the company, for example, an employee who wishes to settle with their family in the future would look for job profiles that allow flexible parental leaves or plans to revise their current policy at least.

Growth, Both Personal and Professional

While the fiscal area of employment may influence long-term association, most employees place personal growth as their number one priority and also the reason they leave their job. Moving from job to job opens up the employee to a wide variety of experiences. It is beneficial professionally for the workers and also benefits the company.

An employee with varied experience can adapt and piece together fragments better at long-term jobs. The new hire also brings their knowledge of different organizational schemas to the company. They can help expose organizational problems that seem insurmountable. Remaining stagnant in one position can also compromise the mental health of the employees. They might doubt their abilities which lead to a decline in productivity and happiness.

Growing - With or Without the Organization

Most employees believe it is important to acknowledge your professional needs and find security, even if it leads to leaving the company they are working with. There might be a lot of potential left for one to explore within their organization, however, if your employees encounter the dead ends, they should not hesitate to leave their situation.

The employees do try to seek avenues of growth within their organization before leaving permanently. Yet the search for a company that values their work ethics and personal growth always remains on.

Retention and Engagement

There are unlimited options for employers to explore to retain and engage employees. Beyond money and promotions, employees also look for factors that keep them happy in their long-term tenure, especially in passion-driven industries. By offering terms to the employees that help them grow personally and professionally, by learning and earning, companies can prevent constant disruptions in their workforce.

Catering to reasonable demands of the employees prevents the loss of morale and turnover due to lack of engagement. Though employers may seem to have an upper-hand in this equation, employment is a two-way street.

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