3 Reasons Employees Quit and How to Fix It

It used to be that employees just wanted a good job with a steady paycheck. Many would sacrifice their passions and tolerate an average job. However, thanks to a strong employment run and the rapid advancement of the gig economy, the veil of scarcity job thinking has turned into abundant job thinking by many professionals.  

The power of employment is now in the hands of talented professionals, and the best companies recognize it. Whether you call it the “Great Resignation” or “Quit Quitting,” there is no doubt this is the time period of the professional. Research by McKinsey suggests that 40% of employees are considering quitting their jobs in the next 3 to 6 months. Most professionals who have left or are thinking about it aren’t walking away for a small pay raise. Instead, they are focused on moving towards something better. They move toward leaders and companies who care about them and intersect with their passions and purpose.  

Professionals are moving toward leaders who care about them and companies that intersect with their passions and purpose.  

Why People Quit

Employees quit jobs for many different reasons. Many people believe, that “people don’t leave companies, they leave managers.” While this isn’t always the case, one of the primary reasons people leave is because of a bad boss. I shared some insights in a recent video here

 McKinsey’s research of why people quit highlights what I call “The Big Three.”
  1. Lack of Career Development / Advancement
  2. Inadequate Compensation
  3. Uncaring / Uninspiring Leaders
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None of these by themselves are shocking or insightful. However, in my work coaching leaders and helping build organizational culture, people often leave when these three interact. You can think of it this way; people are much more likely to quit when they have an uncaring/uninspiring leader and are inadequately compensated. Or they lack career development/advancement and have an uncaring /uninspiring leader.  

Employees leave when two or more reasons they would quit interact with each other. 

How the Best Organizations and Leaders are Adapting

While no company or leader is perfect, the best organizations know employee retention is a great business practice. On average, employee turnover costs organizations between 1x-2x a year’s salary once they have been in the organization for over three years. A Google study found that the average employee that turns over within one year costs about $50,000. The cost of turnover is expensive, and retention is essential.  

However, in the current talent market, retaining high performers and great team players deserves a dedicated strategy corporately and implemented by each manager. Because the best leaders build systems as if their employees will stay forever, even though they know it isn’t true. 

Build retention strategies as if employees will stay forever.  

Adapt Retention Strategies Quickly

As a leadership coach and consultant, I have the privilege of sitting in the front row as companies bare the truth about their recruiting and retention techniques and strategies. More often than not, companies focus more on recruiting than retention. While recruiting talented people is an essential element of leadership, the best leaders focus more on retention than recruiting because fulfilled employees do a lot of recruiting because they are raving fans of the company.

The best leaders focus more on retention than recruiting.

The best retention strategies revolve around four key elements:

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  1. Purposeful Culture – Provide meaningful work and make people feel like they belong to something bigger than themselves.
  2. Training and Development – Invest in managers’ development so they can lead more effectively. Provide learning opportunities for all employees to create a learning culture. 
  3. Ample Compensation – Compensation that exceeds the average pay by industry average and exceeds personal needs. 
  4. Empowerment and Flexibility – Create an environment that allows employees to take ownership of their work, decision making, and schedule. 

Closing

The “how-to” strategies to improve retention around creating a purposeful culture, providing training and development opportunities, giving ample compensation, and sharing empowerment and flexibility are endless. If you want to know if you’re doing a good job, look for these as proof:

  • Leadership development programs
  • Best-in-class technology tools
  • Core values designed and discussed
  • Culture of coaching and mentoring

I hope that instead of blaming, complaining, and acting as if people are disposable, you will do your part to make a difference in people right where you are. Use the opportunities in front of you to “bloom where you are planted” because that’s exactly what the best leaders do. 

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About the Author John Eades is the CEO of LearnLoft, a leadership development company helping executives and managers to lead their best. He was named one of LinkedIn’s Top Voices in Management & Workplace. John is also the author of Building the Best: 8 Proven Leadership Principles to Elevate Others to Success. You can follow him on Instagram @johngeades

Caring Yet Demanding: How Great Leaders Succeed

The temptation for leaders to lower the bar has officially arrived. The combination of the “great resignation” and a two-year run of an employee-driven market has caused many leaders to have an easy-going mentality. While it’s essential to care profoundly and treat people with dignity and respect, lowering the standard required for success will hurt everyone involved.  

Take Gabrielle, a sales manager, at a large technology company, as an example. She had been in leadership for 10+ years and her teams consistently performed at elite levels. However, due to higher than normal turnover and a fear she was demanding too much of team members, she lowered the bar on expectations. Specifically, she began tolerating lower activity levels, below average work, less than outstanding effort, and bad attitudes. 

It didn’t take but a few months for the results of her changes to show up on the scoreboard. Instead of being at the top of the sales team rankings, they had moved to the bottom. In Gabrielle’s attempt to appease her team, unfortunately, she demonstrated a key leadership principle from Building the Best:

The instant you lower the standard, the instant performance begins to erode.

You and I are just as susceptible to act or behave like Gabrielle. However, to be a great leader, demanding excellence while demonstrating the highest level of care is a part of the job. In my work studying, interviewing, and coaching leaders, it’s evident that people need help and assistance from others to perform at their best consistently. 

The best leaders demand excellence while demonstrating the highest level of care

Before we get off track, let’s get on the same page about what it means to be demanding yet intensely caring as a leader. Demanding is best defined as ‘to meet high standards.’ It comes from the Latin Word Demandare, which means to “hand over or entrust.” Being demanding with care isn’t a negative; it’s to help others meet high standards by entrusting them and encouraging them. However, most leaders demand excellence from others, but they forget an essential element. 

Relationships Always Matter in Leadership

At LearnLoft, we researched extensively how the best leaders elevated others by using high levels of love and discipline in their leadership style. If team members don’t feel cared for before a leader demands, it will have an inverse effect. The reason is simple:

Leaders must connect before they correct.

Or said differently, rules before relationships lead to rebellion. Not understanding or believing these two simple leadership principles cause many leaders to fail and are the reason research shows 65% of employees would give up a salary increase if they could fire their boss. 

I covered some specific strategies for quickly and effectively building relationships and connecting with others in a recent episode of the John Eades Podcast, titled, “Connection Isn’t Just Nice, It’s Necessary.”

Demand with Care vs. Demand with Neglect

Even using the word demanding as a leader is extreme in today’s work culture. With so many employees struggling with burnout, stress, and anxiety, how demanding a leader is at a given time is a critical decision to make. The mental and physical health of people must always outweigh any short-term achievement that comes because a leader is demanding.

The mental and physical health of people must always outweigh any short-term achievement that comes because a leader is demanding

Mental and physical health removed, all demanding seems a cause, not for joy but pain; later, when paired with care, it provides great fruit.  

Below is a visual example of those leaders who demand with care vs. demand with neglect

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How to Demand with Care

There is a fine line between confidence and complacency. No one is immune to being complacent or giving less than optimum effort. The best leaders recognize this in themselves and others which is why they demand with care. 

One of the best and often overlooked strategies is to pair communication with an expression of care. An example of this would be coaching a team member hard but giving a handshake or a pat on the back before they leave. Another example in a virtual environment would be pairing tough feedback with, “I am telling you this because I believe in you, and I know you can do it better.” 

The “5 Love Language” Advanced Care Strategy

An advanced leadership strategy I teach leaders is knowing a team member’s “love language” in a non-romantic way. This allows you to express your intense care for team members in alignment with how they most recognize it. If you’re unfamiliar with Gary Chapman’s five love languages here, they are: 

  • Words of Affirmation – Encourage, Affirm, or Appreciate
  • Physical Touch – Use Handshakes, Fist Bumps, or High Fives
  • Receiving Gifts – Thoughtful gifts or gestures
  • Quality Time – One-on-one time or uninterrupted attention
  • Acts of Service – Alleviate their workload or help complete a task

Closing

One of the most potent questions any leader can ask is, “how would others describe you?” While there is no correct or perfect answer to this question, if there isn’t a strong consideration for the words “caring” and “demanding,” there is some work to be done. 

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About the Author John Eades is the CEO of LearnLoft, a leadership development company helping executives and managers to lead their best. He was named one of LinkedIn’s Top Voices in Management & Workplace. John is also the author of Building the Best: 8 Proven Leadership Principles to Elevate Others to Success. You can follow him on Instagram @johngeades.