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What Are The Most Common Causes Of High Employee Turnover?

High employee turnover can be a costly and disruptive issue for any organization. Managers and HR departments seeking to improve employee retention and engagement are likely to wonder: what are the most common causes of high employee turnover? Understanding the causes of employee turnover is critical for employers looking to retain top talent and build a positive workplace culture.


Work Institute offers employee retention and engagement services to help organizations address related employee issues. Keep reading as we explore the most common causes of high employee turnover and how Work Institute can help.


Understanding the High Cost of Employee Turnover

High employee turnover can be a significant financial burden for organizations. When an employee leaves, the employer must spend time and money to recruit, hire, and train a replacement. These costs can quickly increase, especially for positions requiring specialized skills or knowledge.


Additionally, employee turnover can negatively impact morale and productivity, as remaining employees may feel overworked or undervalued. It can also damage the organization’s reputation with customers and potential employees. Organizations should focus on improving employee retention and engagement strategies to avoid these costs. Work Institute’s consulting services can help employers identify the root causes of high employee turnover and develop strategies to address them, ultimately saving the organization time, money, and resources.


What is Considered a “Good” Employee Retention Rate?

Determining a reasonable employee turnover rate can be challenging as it varies based on industry, job type, and organization size. However, a lower employee turnover rate is preferable as it indicates greater stability and continuity in the workforce. A healthy turnover rate typically falls within the 10-15% range, though this may differ depending on the industry and organization.


What Causes High Employee Turnover?

There are various factors that contribute to high employee turnover rates in organizations. This section will explore the most common causes of high employee turnover and how they can be addressed to improve employee retention. Keep reading to learn more.


No Apparent Professional Growth and Development Opportunities

According to Work Institute’s retention reports, more employees leave their jobs due to the lack of growth and development opportunities than the absence of specific advancement prospects; lack of career development has been the primary reason for employee turnover for 13 consecutive years. Employees want to feel like they’re growing and advancing in their careers, and when they don’t see growth opportunities, they may become disengaged and start looking for new opportunities elsewhere. This is especially true for younger generations who value professional development and career advancement highly. Employers that fail to offer opportunities for learning and development risk losing top talent to competitors who do.


Poor Management & Leadership Practices

Employees may leave an organization if they feel they need to be more supported, undervalued, or appreciated by their managers or leaders. Unethical and illegal behaviors in the workplace, such as discrimination or harassment, can also lead to turnover as employees feel unsafe or uncomfortable.


Management and leadership practices can also include favoritism, lack of communication, and lack of feedback or recognition. Employers must ensure that their managers and leaders are well-trained and equipped to create a positive work environment that supports and motivates employees. Work Institute’s services can help organizations develop and implement leadership and management training programs that promote ethical behavior, effective communication, and employee engagement.


Misunderstood Compensation or Benefits

Compensation and benefits may be factors in high employee turnover, but they are only sometimes the primary reasons why employees leave their jobs. While employees who feel they are not being fairly compensated or lack access to benefits may start to consider other job opportunities, simply offering higher pay does not always solve the problem in the long run. It is important for employers to provide fair compensation and benefits, but they should also focus on creating a positive work environment and culture that motivates employees to stay.


Deteriorating or Damaged Work-Life Balance

Employees who feel overworked and unable to maintain a healthy work-life balance may become burnt out, leading them to search for jobs that offer a better balance. This is especially true for employees with families or other outside commitments. Employers prioritizing a positive work-life balance by offering flexible schedules or remote work options can attract and retain employees who value a healthy balance between work and personal life.


Lacking Employee Recognition and Appreciation

Employees want to feel valued and recognized for their contributions to the organization, and when they receive recognition or appreciation, they may feel undervalued and appreciated. This can lead to disengagement and a lack of motivation, which may cause them to search for employment elsewhere. Employers that prioritize employee recognition and appreciation through programs such as employee awards or performance bonuses can improve employee morale and retention.


Poor Employee Engagement

Employees who are not engaged with their work or their organization may become disinterested and need more motivation to perform their job duties to the best of their abilities. This can result in decreased productivity, poor performance, and high turnover rates. Employers that prioritize employee engagement through measures such as employee feedback, regular check-ins with managers, and opportunities for professional development and growth can improve employee satisfaction and retention. Work Institute’s employee engagement services can help organizations implement engagement strategies that boost employee morale and reduce turnover rates.


Incomplete Employee Onboarding Process

Effective onboarding is crucial for setting new employees up for success and increasing their long-term retention. Poor onboarding processes can lead to confusion, lack of engagement, and high employee turnover rates. When employees leave within the first six months, examining the hiring and onboarding processes is important to identify potential issues. Additionally, a high rate of terminations may also indicate problems with the hiring process. By addressing these issues and improving onboarding processes, organizations can improve employee retention and reduce the costs associated with high turnover rates.


Leverage Professional Help to Improve Employee Retention

Work Institute’s employee retention and engagement services can help you improve your organization’s employee turnover rate. Here’s how we do it:

  • We gain insight into the reasons employees have decided to quit
  • We measure employee engagement and satisfaction on an ongoing basis
  • We pinpoint opportunities for improvement in onboarding and recruitment processes


Our “Voice of the Employee” approach gives you the data-driven tools you need to understand how employees feel and why. By asking the right questions at the right time, you can make measurable progress toward better outcomes for everyone.


Are You Ready to Build the Best Team for Your Organization?

High employee turnover is a significant challenge that can negatively impact any organization’s productivity and profitability. However, understanding the root causes of high turnover and implementing effective strategies to improve employee engagement and retention can be a game-changer for any organization. By addressing issues such as inadequate compensation, poor management, and a lack of career growth opportunities, organizations can create a more positive and productive work environment to help retain their employees.


At Work Institute, we are dedicated to helping organizations improve their employee retention and engagement through our innovative data-driven approach. Contact us today to learn more about our services and how we can help your organization achieve its goals.


Image Source: Andrii Yalanskyi / Shutterstock