Why good employees leave small businesses
It’s inevitable that employees will leave your business at some point. It’s very rare for people to spend their entire career within the same business/with the same employer, but there are a variety of reasons why people do leave, from career progression or relocation to changes in personal circumstances.
However, when someone leaves who you believe was happy in their position or your top performers suddenly want to depart, you can be left wondering why.
We’ve put together some of the top reasons why your employees might leave and what you can do to help improve retention and create a workplace that people want to stay in.
No or little opportunities for growth - the majority of people want to develop professionally. They want to be able to add new skills to their CV and rise through the ranks, so if this is not possible, then they might seek employment elsewhere. We’d highly recommend considering development opportunities for your employees in order to improve retention.
In our experience, your job as the line manager is to develop that person to their full potential. That does not mean to say they will take over your job, and they may very well fly the nest if there are no progression vacancies for them. However, succession planning is key to ensuring your organisational continuity.
None of us know what is around the corner – people leave due to retirement, resignation or unforeseen circumstances, so focusing on your current employees to fill those roles at those times makes good business sense.
They feel underpaid - money makes the world go round and to say money is not an important part of why people stay at a company, would be a lie. Employees want to feel like their time and effort is appreciated and they are fairly paid for it.
This is a FAQ by our clients - we can’t afford to pay them more so what can we do? Other options could be some sort of bonus scheme, health cash plans, more flexibility in their roles etc.
They feel underappreciated/overworked - employees who consistently do a good job or even go above and beyond without recognition will ultimately become less motivated as well as burnt out. Simple gestures such as saying thank you, celebrating achievements, recognising milestones and ensuring workloads are manageable can go a long way in making employees feel valued and encouraging them to stay.
Lack of work/life balance or flexibility - in the modern working world, employees value a good work/life balance and flexibility in their roles, so if workloads are consistently high and expectations regularly go beyond those of working hours, employees may begin looking elsewhere for employment.
Recent research has revealed that 28% of employees now rank their work/life balance as the top priority, even beating compensation (27%). Over recent years people have started realising the importance of prioritising flexibility, wellbeing and a sustainable workload just as much as their salary. You can read our helpful blog post on encouraging a healthy work/life balance here.
Management/communication is poor - it’s often said that people don’t just leave jobs, they leave managers. Employees want to feel supported and heard and want to be kept informed about what’s going on in the business, so a lack of communication or feedback from management can quickly lead to disengagement. Holding regular one to one meetings, encouraging open conversations and acting on employee feedback can make a significant difference.
It’s impossible to prevent every resignation, but understanding why employees might leave your business can help you identify areas for improvement and build a stronger, more engaged team. Carrying out exit interviews and collating leavers information is therefore key.
As HR consultants in the south west, we can work closely with you to create a workplace that not only attracts great people, but keeps hold of them too. Get in touch with us to find out how we can help you build a business where people want to stay.