As a business owner, you know that turnover is expensive and stressful. Every employee is an investment for your business, and it can be difficult to see one go. Plus, the process of recruiting and hiring a replacement can take your attention away from running your business, resulting in lost productivity and revenue.

If you’re in an industry that’s known for turnover, the problem is even worse because it can lower the morale of the employees that stick around, increasing the likelihood of even more turnover. 

It’s no wonder that two big questions on every employer’s mind are:

1. Why do employees quit? 

2. How can I keep my employees around? 

At CareerPlug, employee retention is at the forefront of our minds too. Every year, we conduct research to learn from real job seekers and employees as part of our Candidate Experience Report. This research includes asking workers in various industries what makes them want to leave their current job to see what employers could be doing better. Below are the top reasons employees quit:

Let’s take a closer look at the data, so that you can be better equipped to retain the members of your team. 

Reasons employees quit 

Let’s start by highlighting the amount of people we surveyed that have recently considered leaving their job. Out of our 500 participants, 50% said they have thought about leaving their current job in the last twelve months. 

This is huge! And the trend can be seen across industries. For example, 55% of employees in the Personal Care industry said they’ve considered leaving their job in the last 12 months. The same amount of employees who work in Insurance & Financial Services said they have considered leaving their current job in the last year as well. 

So why is it that half of our survey participants have considered leaving their job?

Let’s break down each of the reasons they gave in further detail to understand what you can do as an employer to retain your current team. 

1. Dissatisfaction with current compensation 

It’s no surprise that not being satisfied with current salary or hourly pay is a big reason that employees would consider leaving their job. Inflation has had an impact on everyone in the last year. Plus, labor is in high demand, so many employees/job seekers have more leverage than ever before when it comes to demanding better pay. This shift in power has influenced many employees to quit in search of higher wages. 

This finding was echoed in our 2022 Compensation Expectations Report. Roughly one-third of employees reported being unsatisfied with their current compensation and 55% of all employees said they are looking for an opportunity to increase their pay – whether they are satisfied with their current compensation or not. 

2. Not enough flexibility 

19% of workers in our survey say the desire for a more flexible work schedule made them consider leaving their job in the last year. 

The pandemic caused many people to reevaluate their work/life balance, so it would seem that flexibility within the workplace is a desire that’s here to stay. One survey by FlexJobs found that 70% of millennials have left or considered leaving a job because it lacked flexible work options, and about half of older workers report the same. 

3. Lack of benefits 

17% of our respondents cited their employer not offering benefits as the reason they’ve considered leaving. Once again, with labor in such high demand, employees are seeking out jobs that offer them more. 

Health insurance, 401k, and other employee perks are becoming more commonplace, and employers that get more competitive or creative with employee benefits will likely have better luck both recruiting and retaining employees. 

4. The work environment 

A work environment that you like is obviously important for job satisfaction, and disliking the work environment seems to be an influence on why employees quit. 

In our Toxic Work Environment Report, we found that 72% of employees have left a job because of a negative work environment and 51% said they plan on leaving their current job for the same reason. 

It’s also worth pointing out that the importance of the work environment may have a bigger impact in certain industries. For example, 60% of job seekers in restaurant and food services said they left their last job because they disliked the work environment and 100% of job seekers in the fitness industry reported leaving their last job for the same reason. 

5. Conflicting responsibilities

Sometimes the reason an employee leaves has little to do with the actual job itself, rather outside circumstances play a big role. Caring for a sick family member, the addition of a new child, or other care responsibilities can also lead to employees quitting. 

A flexible work environment and culture that values work/life balance can help you retain employees who are considering leaving because of these personal reasons. 

6. COVID safety concerns 

Safety concerns over COVID-19 still plague many job seekers. These concerns have caused employees to consider leaving the workforce entirely or to look for a job in a different industry. Make sure your company has taken steps to keep employees safe and share protocols with the team often. 

Other factors to consider

Though our research gives us great insight into some of the main reasons employees quit, there are still plenty of other factors to consider. General job stress, burnout, and lack of mental health support may cause employees to take time away from a role. Changes at home, a move to a new city, or the desire for growth all may lead employees to seek out something new. 

Many times, there is not one simple reason for an employee quitting their job, rather many factors coming together that leads them to the decision to resign. As an employer, you can’t control everything, but you can take steps to mitigate the most common reasons that employees consider quitting. 

Keeping employees around 

Instead of focusing on the things that make employees leave, think in terms of what makes employees want to stay. Get to know the needs of your employees and act accordingly. 

Provide employees with truly competitive compensation and offer raises or bonuses when you can. Employee perks and benefits can go a long way in making employees feel appreciated and secure. Flexibility and autonomy are more desired than ever in today’s labor landscape. 

When all is said and done, what employees are asking employers for is actually pretty simple: Be a great place to work.