Search

Why Do Employees Really Quit? Understanding the Hidden Factors Behind Employee Turnover

Jonathan H. Westover, PhD
10 hours ago
5 min read

Listen to this article:

Abstract: This paper examines the critical issue of employee turnover and its substantial impact on organizational performance. While external labor market factors contribute to turnover, our analysis reveals that preventable internal organizational factors often drive employee departure decisions. Through comprehensive research and industry case studies, we identify key turnover drivers including poor leadership practices, insufficient growth opportunities, inadequate compensation, toxic workplace cultures, unsustainable workloads, ineffective onboarding processes, and lack of recognition systems. The paper further outlines evidence-based retention strategies that organizations can implement, including regular employee feedback mechanisms, leadership development, structured career advancement frameworks, competitive compensation packages, and systematic onboarding programs. These approaches not only reduce costly turnover but position organizations to build engaged, high-performing workforces that create sustainable competitive advantage in challenging labor markets.

Employee turnover can be incredibly damaging to organizations, resulting in lost productivity, lower morale among remaining employees, and high costs associated with recruitment and training of replacements. While external factors such as the job market play a role, research and organizational practices suggest that many employees quit their jobs due to hidden and preventable reasons within the organization itself.

Today we will explore the key motivations behind why employees really choose to leave their positions, grounded in research findings and practical industry examples, as well as strategies that organizations can employ to foster higher employee retention and engagement.

Poor Leadership and Management

Research consistently demonstrates that poor management is a primary driver of employee turnover. A 2017 Gallup study found that only 3 in 10 U.S. employees strongly agree that their managers or supervisors create an environment where people want to do their best. Ineffective leadership negatively impacts employee engagement, performance, and satisfaction. Employees are more likely to quit if their managers fail to clearly communicate expectations, provide feedback and recognition, treat employees with respect and care about their well-being.

For example, a hospital system struggled with high nursing turnover, costing over $5 million per year. An internal survey revealed that nurses frequently felt overworked due to poor staffing planning, received little guidance or support from department managers, and believed their concerns were not addressed by senior leadership. Targeted leadership training for managers, improved communication of staffing projections to nurses, and open forums for nurses to directly share feedback with executives helped significantly reduce nurse turnover within 18 months.

Lack of Growth Opportunities

Most employees want to continually learn and progress in their careers. However, research by Gallup found that only about half of U.S. employees strongly agree that they have opportunities to learn and grow at work. A lack of career advancement prospects is a powerful reason why talent leaves. Organizations must proactively help employees envision career paths, provide developmental challenges, and enable skills-building.

For instance, a tech startup witnessed high attrition among software engineers after three years of tenure. Exit interviews revealed engineers were frustrated by a lack of new technical responsibilities or career advancement within their current roles. The company launched an internal job rotation program, rotational leadership assignments, and external training subsidies. These changes helped engineers continuously expand their skills and responsibilities, significantly curbing late-career turnover.

Insufficient Compensation and Benefits

While compensation alone does not drive job satisfaction, inadequate pay relative to an employee's perceived contributions or the market rate can foster feelings of inequity that lead to turnover. Total rewards, including competitive salaries, bonuses, healthcare, paid time off and retirement plans, communicate an organization's commitment to attracting and retaining talent.

For example, a manufacturing firm struggled with operator retention, particularly among new hires. A review found starting pay was 15-20% below comparable roles locally. Raising entry-level wages and improving health benefits helped the company better compete for operators and reduced first-year turnover by 30%. Periodic market reviews also ensure reward programs keep pace with the labor market to retain top performers.

Dysfunctional Company Culture and Politics

Toxic elements within an organization's culture, such as political infighting, lack of collaboration, or an "us versus them" mentality between teams pose significant retention risks. Strong, values-driven cultures with a focus on teamwork and employees' well-being powerfully impact engagement and intent to stay.

For instance, a law firm grappled with associate attrition, hindering business growth. Employee surveys revealed winners-take-all attitudes, withholdment of client information between practices viewed as sabotage rather than collaboration. Mandatory culture-shaping training, open-book management giving transparency into firm-wide metrics, and cross-practice task forces fostered cooperation and reduced turnover.

Excessive Workload and Stress

Lack of work-life balance increases burnout and drives talent away. Long hours, unrealistic deadlines or an always-on work culture destroy job satisfaction over time. Organizations must thoughtfully design work to be challenging yet sustainable and support employees' mental well-being through flexible work arrangements, paid time off and stress management resources.

For example, accounting firm PwC conducted pulse surveys finding millennials were more likely to quit due to constant overtime. The firm allowed flexible schedules, offered summer Fridays with half-days and boosted mental health benefits coverage. These changes helped reinvigorate employees and slash voluntary turnover among new hires by 27%.

Poor Onboarding and Integration

The way new hires are welcomed and integrated sets the foundation for retention. Yet Gallup research shows only 12% of employees globally strongly agree they received help integrating into their organization when they first joined. Robust onboarding programs accelerate skills development, foster inclusion and help new hires rapidly contribute value.

For instance, an insurance company had high attrition in the first 90 days. Department "buddy programs" paired newcomers with veteran employees. Weekly check-ins with managers were instituted in the critical first month. New training modules addressed skills gaps earlier. These onboarding enhancements slashed first-quarter turnover by 40%.

Lack of Feedback and Recognition

Continued performance management and acknowledgment of contributions are important motivators that keep talent engaged. However, only 29% of U.S. employees strongly agree they receive recognition or praise for doing good work, according to Gallup. Timely feedback and sincere appreciation motivate employees to stay and do great work.

For example, a utility firm began struggling to retain field technicians beyond five years despite strong pay. Exit surveys found few technicians received in-field recognition from supervisors or comments on their progress reports. “Shout-outs” in training sessions and handwritten thank you cards for milestones like safety records helped technicians feel valued. 5-year retention subsequently grew by 15%.

Moving Forward with Strategic Retention Practices

By understanding why employees truly leave their jobs and addressing root causes grounded in research and data rather than assumptions, organizations can develop strategic retention practices to foster higher employee loyalty and engagement. Key actions include:

Ongoing pulse surveys to proactively identify issues impacting satisfaction and retention before attrition worsens. Benchmarking against industry averages aids problem-spotting.
Rigorous performance management including frequent feedback, skill-building conversations and sincere appreciation to motivate top talent.
Leadership training emphasizing supportive, empathetic management styles that empower employee wellness.
Robust onboarding and mentorship programs to speed integration of new hires and reduce early attrition risk.
Career development frameworks including rotations, assignments and subsidies for external training to groom future leaders from within.
Rewards programs benchmarked to local markets and regularly reviewed/enhanced to recruit and retain top talent.
Targeted retention/stay interviews with high performers to diagnose issues rapidly while solutions can be implemented.
Consistent measurement and transparency into retention metrics to gauge impacts of initiatives.

By addressing retention holistically with data-driven insights rather than assumptions, organizations can curb costly turnover, reinvigorate workforce morale and engagement, and strengthen their ability to attract and retain talent—a strategic advantage in today’s tight labor markets. An emphasis on the human factors beneath surface reasons for leaving can create a culture where employees want to build long-term careers.

References

Gallup. (2017). State of the American workplace.
Gallup. (2013). State of the American manager: Analytics and advice for leaders.
Gallup. (2017). How millennials want to work and live.
Gallup. (2017). The high cost of poor management.

Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.

Suggested Citation: Westover, J. H. (2026). Why Do Employees Really Quit? Understanding the Hidden Factors Behind Employee Turnover. Human Capital Leadership Review, 21(2). doi.org/10.70175/hclreview.2020.21.2.3