By Jonathan H. Westover, PhD
Abstract: This article examines the key psychological and organizational factors that lead employees to voluntarily resign from their jobs based on scholarly research literature. The four main push factors that topped multiple studies are lack of growth and development opportunities, poor leadership and management, lack of autonomy and meaningful work, and an unfavorable work environment and culture. To combat unwanted turnover, the article outlines actions leaders can take to directly address these drivers, such as providing continuous learning opportunities, establishing effective people leadership, empowering employees, and building a positive culture. It discusses how healthcare staffing firm Staffflex implemented strategies focused on coaching managers and revamping performance and goal-setting practices, resulting in a 30% reduction in voluntary attrition and lower replacement costs. In conclusion, the article argues that gaining insights into the real reasons employees quit can help leaders shift from superficial solutions to addressing deeper causes through targeted retention-building best practices.
Employee turnover is a significant cost and burden for organizations. When employees leave their jobs, it takes time and money to replace them while also impacting company culture and morale. With average replacement costs estimated at 20-30% of an employee's annual salary, losing key talent can damage a business's bottom line (Cooper & Mitchell, 2019). Moreover, in today's competitive market, attracting and retaining top talent is crucial for sustained success. While financial compensation is often cited as a motive for leaving, research shows the real reasons employees voluntarily resign are more complex, stemming largely from workplace factors beyond pay.
Today we will examine the main psychological and organizational push factors that lead people to quit their jobs based on scholarly literature. Overall, the goal is to equip managers with a deeper understanding of why employees really leave so they can build retention-focused cultures where talent wants to stay.
Why do employees quit? Key factors driving voluntary turnover
While situations vary between individuals and companies, research has identified common themes around why employees voluntarily choose to resign from their roles. The following four factors topped the list and had the largest influence on an employee's propensity to quit according to multiple studies:
Lack of growth and development opportunities
People want fulfillment from their work and a sense that they are progressing in their careers. When workers feel stagnant or that their skills are not being challenged, they become dissatisfied and look elsewhere for growth (Herzberg, 1959). Not providing chances to learn, take on new responsibilities, or advance can push talent out the door over time if this need is not met (Gallup, 2017).
Poor leadership and management
Toxic bosses, lack of support, unfair treatment, unclear expectations, and autocratic leadership styles are major demotivators that make employees want to leave (McManus & Mosca, 2015). How managers treat and engage with their direct reports is extremely important - employees will quit bad managers long before they quit their jobs.
Lack of autonomy, responsibility, and meaningful work
Dull, repetitive tasks and lack of control or ownership over work projects can lead to boredom, frustration, and engagement problems over the long-run. When employees feel their job lacks purpose or that their contributions don't really matter, they may start job searching to find roles with more autonomy and responsibility (Hackman & Oldham, 1976).
Unfavorable work environment and culture
Organizational politics, coworker conflict, unreasonable workloads, inadequate resources, lack of alignment with company values, and other unfavorable conditions can poison the workplace environment. Employees will leave toxic situations for jobs perceived as more positive (Cooper & Mitchell, 2019).
These psychological and situational push factors are what employees will likely cite as the root causes underlying resignation decisions if asked. However, perceptions of inadequate compensation may also be symptomatic responses that emerge from deeper organizational issues such as those outlined above. The next section explores how leaders can directly impact retention through specific people management practices focused on addressing these turnover drivers.
Actions leaders can take to reduce unwanted turnover
With awareness of the key reasons employees voluntarily resign, managers are empowered to implement preventative measures through targeted strategies focused on retention. The following outlines some actionable steps leaders can undertake to address the organizational push factors and build cultures where talented staff choose to stay:
Provide continuous learning, development and career growth opportunities:
Invest in ongoing skills training and offer tuition reimbursement/educational assistance programs
Rotate staff into new challenging assignments/projects regularly to keep work stimulating
Offer coaching, mentoring and stretch assignments to expose people to different areas of the business
Create clear career paths with advancement opportunities for high performers
Establish effective people leadership practices:
Embrace servant leadership principles - focus on empowering, developing and caring for staff
Hold regular 1:1 check-ins and provide ongoing performance feedback
Foster an open door policy and willingness to listen when issues arise
Address poor performance or conduct issues consistently and professionally
Empower employees and give them ownership and autonomy:
Delegate responsibilities and allow staff to work independently within defined parameters
Solicit input from staff on projects and initiatives to foster engagement
Encourage initiative and reward behaviors like self-driven problem solving
Involve staff in decision making through committees whenever appropriate
Build a positive and supportive company culture:
Promote team building, appreciation, and work-life balance activities
Foster open communication through all-hands meetings and an online intranet
Address workload concerns proactively through resource and process adjustments
Recognize and reward staff publicly for contributions on a regular basis
A healthcare staffing firm called Staffflex implemented the above strategies successfully to curtail voluntary turnover that was initially costing the company over $500,000 per year according to HR records. In particular, the company focused on empowering managers through coaching to strengthen people leadership skills. They also revamped performance review and goal setting practices to emphasize growth through new experiences. As a result, voluntary attrition dropped by 30% and employee satisfaction climbed, minimizing replacement expenses substantially.
Conclusion
Employees quitting jobs they've held for years signals unresolved issues with the work environment or how staff are being managed. By gaining insights into the psychological push factors proven to drive resignations, leaders can shift focus from superficial turnover "problems" to addressing deeper organizational causes through targeted solutions. Using the retention-building best practices outlined provides a framework for any leader aiming to foster cultures where employees choose to stay long-term. Building satisfied, engaged workforces through proactive people leadership not only saves money but also bolsters company performance as top talent retention becomes a competitive strength for sustainable organizational success.
References
Cooper, C., & Mitchell, D. (2019, October 24). The hidden costs of employee turnover. Gallup. https://www.gallup.com/workplace/236430/hidden-costs-employee-turnover.aspx
Gallup. (2017, March 29). State of the American workplace. https://www.gallup.com/workplace/238085/state-american-workplace-report-2017.aspx
Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of work: Test of a theory. Organizational Behavior and Human Performance, 16(2), 250–279. https://doi.org/10.1016/0030-5073(76)90016-7
Herzberg, F. (1959). The motivation to work (2nd ed.). John Wiley & Sons.
McManus, M. C., & Mosca, J. (2015, March). Strategies to build a resilient workforce. Institute for Corporate Productivity. https://www.i4cp.com/productivity-blog/2015/03/09/strategies-to-build-a-resilient-workforce
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. (2024). Why Employees Really Quit and What Leaders Can Do. Human Capital Leadership Review, 11(2). doi.org/10.70175/hclreview.2020.11.2.12
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