Employee retention refers to a company’s ability to keep employees from voluntarily leaving the company. Companies usually calculate retention as a percentage (number of voluntary terminations divided by the total number of employees). For example, you have 1,000 employees, and 100 leave within the year, you have a 90% retention rate. This is the opposite side of the turnover rate, which shows the percentage of people who have left your organization.
Generally, the Human Resources department is tasked with developing strategies to increase employee retention. They, along with management, focus on making the company a place where people want to stay. Employee retention strategies generally focus on either financial incentives or cultural incentives. Smart organizations use both.
To keep reading, click here: 8 Top Ways to Retain Your Great Employees
what are the reasons why their employees leave the company? I need your ideas.
One of many reasons is Compensation.. If employees are not satisfy by how they would be paid, then, most probably, they will leave the company.. However, even if employees tend to be satisfied by their salary but they don’t feel something fulfilling or they don’ have a friendly environment, that’s practically one reason that they would opt to leave the organization. There are so much underlying reasons, actually with regards to employees dissatisfaction during their employment stay.. 🙂
It’s very unfortunate, but good employees quit their jobs for reasons that an employer can’t control. Employees lives change and their circumstances may place them back in grad school or moving across the country or maybe there are problems with their management.
that’s right ma’am. I have also heard when I was having my OJT in a car company, most of their employees leave their job from that company because they don’t like the management and there’s no transparency with the commission they get..
Yess! I that’s a good idea adriannimus, especially to the employees who needs a clear and exact rules or the transparency between the management and their employees.
And according to Marc de Grandpre, the senior vice president of marketing for KIND Healthy Snacks, transparency is crucial to not only a better office culture, but also to a business’s survival.
wow! thanks for that info! So what should be the actions of the management shall make to deal with the issue? 🙂
thank you ma’am for sharing your thoughts. well appreciated.!
MOst of them don’t leave jobs, they leave managers. Managers who don’t communicate with employees and don’t appreciate them, They leave despite of a very high salary….
you are right sir! especially that the company’s success is dependent on their people, they must learn to appreciate them! thank you sir for your feedback!
Bad management is a real reason why employee leave and it will have serious implications on company turnover, as well as staff morale, productivity and ultimately profitability. “Training can help foster better management style in a business. Companies should also reward good managers who can be a huge asset.”
thank you sir for that very informative statement! great help!
I think the reasons why employees leave, maybe because they look for an opportunity that can help acquire new skills and competencies that not found in their organization and also because of low salary.
thank you for your very informative response!!
One of the many reasons that tops among all is the not-so-good working environment that affects the working capacity of the employee due to his uncomfortability while at work. I believe salary is not a motivator that keeps employee stay, but a good working environment is way more important.
You’re right sir! The management should do something for this situation. The better employer’s take care of their employees, the more productivity they will get in return. thank you for your response sir!
One of many reasons is Compensation.. If employees are not satisfy by how they would be paid, then, most probably, they will leave the company.. However, even if employees tend to be satisfied by their salary but they don’t feel something fulfilling or they don’ have a friendly environment, that’s practically one reason that they would opt to leave the organization. There are so much reasons, actually with regards to employees dissatisfaction during their employment stay..
so have you ever done quitting your job? because of that matters? may I know if you don’t mind.
Employee complaints about managers and supervisors center on these areas. Employees leave the company who fail to provide clarity about expectations, fail to provide clarity about career development and earning potential, fail to give regular feedback about performance, fail to hold scheduled meetings, and fail to provide a framework within which the employee perceives he can succeed.. i guess the problem is on the employee..
thank you for sharing thoughts Mr.Ed! Great help!
one of the reason is that the employees experienced unequality in terms of salary and/or other compensation. The management should build transparency among their employees.
that’s very great idea sir buno! especially transparecy between the management and employeeS. I would like to share to you sir when I was having my OJT last year, many of their employees were very mad with the commission they’ve received it did not met their expectations. they’re very confuse. And one of them said to me that the managemnt don’t have clear info or no transparency with the pay they receive. that’s why most of them reacted and said: “after everything I have done, the effort, it did not pays off!! blah..blahh..” That’s also the reason why many of them will quit and transfer to other company.
@adrianniumusHRM, well your right . sometimes other employees left because of environment of the workplace, they are not comfortable and others cannot perform appropriately because of the environment like lack of facilities an like..
yeah you’re right sir! the company should make actions about it beacause it’s their responsibility! thank you sir for your ideas!
I have been working in a company for almost 15 years, I have encountered this issue many times. And every time someone resigned, I always asked what’s wrong with them? Is it because of their salary? mostly employee leave not because of the compensation they get, not because of the company, but ‘People leave Managers’ — it was identified that managers is the most disliked aspect of their job!
if that’s the reason sir, what would their employees want their manager to do? or what characteristics of a managers they want them to have sir? may I ask?
Basically, they want managers who show care and empathy for their staff, and provide a positive feedback and always give recognition regularly for well done.
that’s very sir, especially to those people who are very emotional and has sensitive feelings. Thank you sir for the reply!
very true* i mean
I’ve seen few cases where an employee resigned and literally gives the boss the B*rd and storms out, these happened in highly dysfunctional organizations with really bad management.xl
whaat!? that’s very inappropriate! th ank you sir for sharing!
_When employees leave for another job it can be a testament to how well the company is. Sometimes they leave because they don’t have enough support or acknowledgement for the value and effort they are providing.
No matter how HIGH the salary or GREAT benefits the company has offered, when managers don’t communicate with them, people will tend to leave…
thank you @jessicascheuflerde and @marionc1 for your information.
you are right ma’am! same thing i encountered in my OJT. that’s mostly the reason I’ve heard from them. thank you ma’am for sharing. 🙂
There are factors that cause the employee disconnect from the company: they believe their manager does not trust them or treat them with respect; they do not see how their work contributes to the purpose or mission of the organization; they do not see the organization as being sufficiently honest or transparent with employees; they do not free to express their own ideas and opinions.
thank you for sir this very informative response! I hope these factors will be address…
Mostly people leave, they compare what they expect from their current job to what they expect alternative jobs might be like and to the probability of getting another job. These perceptions produce produce an attraction to the current job as well as an attraction to try to find a new job and which may lead to intentions to quit.
take a leap of faith!
thanks for sharing Sir!
Employees leave a certain company for so many reasons – unsatisfied amount of wage and salary, realizing that their capabilities and skills will not be of use or not be compatible with the company’s objectives, finding a better job, and the like. Basically when employees’ needs and demands are not met, they leave.
thank you Ms. Erica for sharing your ideas!
As my professor once said employees leave their job because they want greener pasture. I think employees leave because they do not like the job they have. Probably because of money, maltreatment, or conflict.
thank you for sharing!
Failure to unleash their passions. Smart companies align employee passions with corporate pursuits. Human nature makes it very difficult to walk away from areas of passion. Fail to understand this and you’ll unknowingly be encouraging employees to seek their passions elsewhere.
that’s right ma’am, especially when you are looking for a job. You need to find what’s your passion and fit in! thanks Ms. HRwoman for your very informative ideas!
Yeah you are right definitely.
Most or if not employees leave their jobs because they are not satisfied with the compensation given by the company
yeah most likely. thank you!
Perhaps they are quitting because they can’t take working 60+ hours per week since companies are not hiring enough people for the workload.
thank you sir for you reply.
The reasons why employees leave to the company they are in its because of having low compensation. It might be also that an employee don’t feel the environment within his/her colleagues.
thanks for the reply!
Some are not satisfied with the compensation given by the company or this is this job mismatched
thanks!
the company should create/or build the climate of trust and transparency.
yeah, you are right. the management should make use of the open door policy in which the employees are given the opportunity to be heard their opinions or ideas, the employers as well. thanks for the response!
Great idea Sir!
The problem is not wages or jobs, it is the cost side of the equation. Higher housing, food, fuel (although not this year so far), goods and services means you still need a family of four to have two people working not just one like it was in the 50’s. In the 50’s, you had one TV and no such thing as cable. You had one telephone line to the house. Today, you have several TVs, tablets, and pay for cable, satellite or services such as Netflix. Today you have smartphones for all four individuals. Per person, we consume and use more and hence must pay more…
That’s why most of them quit the job and live with their own business. thank you for your very informative idea!
Yeah. That’s true!
According to Leigh the seven reasons employees leave are:
1.The job or workplace was not as expected
2. Mismatch between job and the person
3. Too little coaching and feedback
4. Too few growth and advancement opportunities
5. Feeling devalued and unrecognized
6. Stress from overwork and work-life imbalance
7. Loss of trust and confidence in senior leaders
That is very true ma’am! every individual should attend seminars or training about their for them to know their job, to have idea on what job are they fit in. And also the company should also provide that for their employees to motivate them. Thank’s for your very good idea ma’am!
People don’t quit their jobs, they quit their bosses
My bet is that this culture of fear not only impacts productivity and innovation, it leads to serious health issues as well. So people will quit rather than deal with abusive bosses, or continue in a fearful climate of job insecurity
Thanks for the information. Great help.
Employees need to feel valued and appreciated, be given feedback, provided with growth opportunities, be given work-life balance options, and have trust and confidence in their leaders. All of these retention strategies are beneficial when an employer wants to keep employees within an organization and keep costs of turnover low.
A report from Grow America compiled research from several sources. In truth, the majority of people, quitting or not, are currently unhappy in their corporate jobs.
1) They don’t like their boss (31%),
2) A lack of empowerment (31%),
3) Internal politics (35%) and
4) Lack of recognition (43%
Thanks for your great info. Yes, great effort is required by leaders to maintain a positive and productive work environment.
A bad manager is a big factor in employee performance, they will leave a company despite a high salary. A good manager, no matter the salary, will inspire loyalty.
yeah that’s true! thanks for the info.
Lack of Benefits is I think the reason why employees leave the company. Most of us want to have a job with good benefits from the company like health fund, retirement bonus, etc. that will encourage unemployed people to apply, but whats happening is, a lot of company doesn’t have those benefits to give to its employees.
that’s why it is necessary for the individuals who are seeking for a job to have a background check or make any research about the company they want to apply. Inorder for them to know beforehand. thank you for sharing your idea!
Sometimes in life. It’s not all about the money. Every person has a unique mind. Each and everyone of us has different views, purposes, passions, professions in life. Sometimes employees quit their jobs for some reasons. It might be that they are tired of what they’re doing. It’s not anymore dedicating their efforts for their bosses But dedicating their short life for their bosses… #YOLO #ENJOYLIFE
yeah that’s very true. most likely the individuals enter into a job just to have an experience, after many months or years they get bored and that’s the time they’ll leave and find another job.
Many, if not most of the reasons shared, usually fall within the same 5 categories. Below are the top 5 reasons employees express why they are leaving their current employer or the company.
1. They don’t feel appreciated
2. They aren’t innovating
3. They aren’t properly trained
4. They feel like they’re in a toxic work environment
5. They don’t have work-life balance
That’s why it is essential to hire, develop and retain top talent to ensure your business stays innovative, efficient, and successful. Losing top talent can affect a company’s image and morale. thank you for this idea!
Base on some of my friend’s experiences, one quit her job due to unpaid overtime work. The other got tired and bored. Another would be unresolved management issues, including the unprofessional traits of some of the employees. Some are in contractual. And another would be just considering a job experience and would be in search for a greener pasture. It usually comes down to personal preferences and contentment on the kind of job they’re in, considering the salary as well. 🙂
yeah that’s very true! that’s the reality of life, in a changing environment your preference will also change. You have to set your mind what’s best for you and what makes it good for you. thank you for sharing your thoughts! 🙂
the majority of reasons why employees quit their job are under the control of the employer. In fact, any element of your current workplace, your culture and environment, the employee’s perception of his job and opportunities are all factors that the employer affects.
That’s why it is important for the company to build a employer to employee relationship, to work together and support in the achieving the company’s goal. Thank you sir for sharing your idea.
ONe of the reason is ” Work ” Given that most of our adult lives are spent at work, it’s important to understand and feel that the work you do is meaningful. When you spend eight hours a day, five days a week, month after month, year in and year out at work, your sense of purpose and accomplishment in life is often tied to what you do. Employees surveyed by SHRM ranked work itself as one of the top five contributors to job satisfaction. So, when employees are unsatisfied with their work, it could mean retention issues for you.
I think the best thing to do is that the management should motivate their employees for them to be more involve in their work and help themselves to work harder.
“People leave managers not companies…in the end, turnover is mostly a manager issue,” Gallup wrote in its survey findings. The effect of poor management is widely felt. Gallup also determined that poorly managed work groups are on average 50 percent less productive and 44 percent less profitable than well-managed groups.
thank you for your informative ideas sir!
for me one of the reason’s is that looking for better
Greener Pastures. If an employee feels the company they work for doesn’t have room for growth, they may move on to greener pastures. So, make sure your employees have career paths they can work toward.
yeah that’s mostly the reason why they leave their current job, they are the person who are just starting their work like the fresh graduates and wanted to have more experience with other firms. thanks for your reply sir! great help.
Health related issues for an employee, his or her spouse, or another family member is another reason employees resign. You probably can’t do anything about an employee quitting for health reasons, but you can help keep your workforce healthy and strong by developing a health incentive program that works for your company. Also, make sure your team is following the safety procedures in place to protect them from injury. Your workers need to know they’re more than just employees to you.
the management should provide a safe working environment like health security/safety for every employees to prevent from any harm and to protect the well-being of the employees. from that they’ll feel that they are cared and important to the company. thank you sir for sharing your idea!
it is in the workplace that an employee meets a bad boss. so it might be employees leave the company because of the morale that they receives in the boss. So employee not to do their work perfectly and cleanly, for them it is nice to be leave in the company that is not nice to work with the boss is not good for them to, because as a leader in a company it is to be flexible to the new employees.
thank you for sharing your idea sir!
In the first few months of employment, the single most likely cause employees quitting is the behavior of their immediate supervisors. Even with the best leaders in place, newly-hired employees will continue to quit in less than one year, but the rate should be lower than when ineffective bosses are at the helm.
Can a employee report his supervisor with the behavior he had showed to him? and where/who can he/she report the issue?
Another reason why do employees leave is that, the company lack of having a recognition and good rewards for their employees.