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  • 8/17/2019 Dissatisfaction Create to Quit Job.docx

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    Top 10 Reasons Why Employees Quit

    /Leave Their Job:

    Image Source/ Image Source/ Getty Images

    Updated August 22, 2015.

    Employees quit their o! "or ma#y reaso#s. $hey "ollo% spouses across the cou#try, stay home

    %ith childre#, a#d go !ac& to school. $hose reaso#s are tough to address !y a# employer !ecause

    they i#'ol'e li"e e'e#ts i# the employee(s %orld outside o" %or&.

    )ut, the maority o" reaso#s %hy employees quit their o! are u#der the co#trol o" the employer.I# "act, a#y eleme#t o" your curre#t %or&place, your culture a#d e#'iro#me#t, the employee(s

     perceptio# o" his o! a#d opportu#ities are all "actors that the employer a""ects.

    $he !est %ay to retai# employees is to stay i# touch %ith %hat they(re thi#&i#g. Are they happy

    %ith their %or&* Are their #eeds "or challe#ge, !elo#gi#g, de'elopme#t, a#d mea#i#g"ul %or&met* +o they ha'e the commu#icatio#, pro!lem sol'i#g, "eed!ac&, a#d recog#itio# that they

    #eed "rom their !oss*

    I" you stay i# touch %ith your employees, you ca# head o"" pote#tial rete#tio# issues.

     

    )ut, you must thi#& a!out employee rete#tio# e'ery day. Are the systems, processes, a#drequireme#ts i# your compa#y supporti'e o" employees*

    +o they support the most importa#t #eeds o" your employees "or mea#i#g"ul %or&, mar&et

    compe#satio# a#d !e#e"its, a#d the a!ility to ha'e a# e""ect o# their %or& a#d %or&place* ost

    importa#tly, do they ma&e employees %a#t to stay*

    http://humanresources.about.com/od/organizationalculture/a/culture.htmhttp://humanresources.about.com/od/retention/a/turnover_tips.htmhttp://humanresources.about.com/od/retention/fl/when-to-start-employee-retention.htmhttp://humanresources.about.com/od/retention/fl/when-to-start-employee-retention.htmhttp://humanresources.about.com/od/retention/a/turnover_tips.htmhttp://humanresources.about.com/od/retention/fl/when-to-start-employee-retention.htmhttp://humanresources.about.com/od/organizationalculture/a/culture.htm

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    As& them. -old stay i#ter'ie%s to determi#e %hy employees stay %ith your orga#iatio#. $he#,

     pay atte#tio# to a#d e#ha#ce the "actors they ide#ti"y that &eep them comi#g !ac& e'ery day.

    Employees o! search "or a reaso#. i#d out %hat it is !e"ore the employee a##ou#ces herdeparture.

    Sure, a great opportu#ity drops i#to a# employee(s lap occasio#ally.

    )ut, this is #ot the #orm. ro'ide that great opportu#ity i# your compa#y a#d o% %hat that

    great opportu#ity is to retai# your !est employees.

    Here are ten critical reasons why employees quit their job. You can manage them.

    • Relationship with boss

    Employees do#(t #eed to !e "rie#ds %ith their !oss !ut they #eed to ha'e a relatio#ship.

    $he !oss is too much o" a# i#tegral part o" their daily li'es at %or& "or a# u#com"orta!le

    relatio#ship.

    $he !oss pro'ides directio# a#d "eed!ac&, spe#ds time i# o#etoo#e meeti#gs, a#d

    co##ects the employee to the larger orga#iatio#. $o ha'e a to3ic relatio#ship %ith the perso# a# employee reports to u#dermi#es the employee(s e#gageme#t, co#"ide#ce a#d

    commitme#t.

    A  !ad !oss is also the #um!er o#e reaso# %hy employees quit their o!. -ere4s ho% to get

    alo#g %ith your !oss.

    • Bored and unchallenged by the work itself 

     o o#e %a#ts to !e !ored a#d u#challe#ged !y their %or&. 6eally. I" you ha'e a#

    employee %ho acts as i" she is, you #eed to help her "i#d her passio#. Employees %a#t toe#oy their o!. $hey spe#d more tha# a third o" their days %or&i#g, getti#g ready "or

    %or&, a#d tra#sporti#g themsel'es to %or&.

    7or& closely %ith employees %ho report to you to e#sure that each employee is e#gaged,

    e3cited, a#d challe#ged to co#tri!ute, create, a#d per"orm. 8ther%ise, you %ill lose them

    to a# employer %ho %ill.

    • Relationships with coworkers

    7he# a# employee lea'es my compa#y, e'ery email that is se#t to the %hole compa#y, to

    say good!ye, i#cludes a comme#t a!out passio#ate co%or&ers %ho the employee cares

    a!out a#d %ill miss. Seco#d o#ly to a# employee(s ma#ager, the co%or&ers %ith %homhe sits, i#teracts, a#d ser'es %ith o# teams, are a critical compo#e#ts o" a# employee(s

    %or& e#'iro#me#t.

    6esearch "rom the Gallup orga#iatio# i#dicates that o#e o" the 12 "actors that illumi#ate%hether a# employee is happy o# their o! is ha'i#g a !est "rie#d at %or&. 6elatio#ships

    %ith co%or&ers retai# employees. otice a#d i#ter'e#e i" pro!lems e3ist.

    http://humanresources.about.com/od/employeeretentio1/a/what-is-a-stay-interview.htmhttp://humanresources.about.com/od/badmanagerboss/a/bad_boss.htmhttp://humanresources.about.com/od/badmanagerboss/a/bad_boss.htmhttp://humanresources.about.com/od/workrelationships/a/boss_relations.htmhttp://humanresources.about.com/od/workrelationships/a/boss_relations.htmhttp://humanresources.about.com/od/careersuccess/qt/passion_work.htmhttp://humanresources.about.com/od/Employee-Engagement/qt/Employee-Engagement.htmhttp://humanresources.about.com/od/glossarye/g/employer-of-choice.htmhttp://humanresources.about.com/od/employeeretentio1/a/what-is-a-stay-interview.htmhttp://humanresources.about.com/od/badmanagerboss/a/bad_boss.htmhttp://humanresources.about.com/od/workrelationships/a/boss_relations.htmhttp://humanresources.about.com/od/workrelationships/a/boss_relations.htmhttp://humanresources.about.com/od/careersuccess/qt/passion_work.htmhttp://humanresources.about.com/od/Employee-Engagement/qt/Employee-Engagement.htmhttp://humanresources.about.com/od/glossarye/g/employer-of-choice.htm

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    • Opportunities to use skills and abilities

    7he# employees use their sig#i"ica#t s&ills a#d a!ilities o# the o!, they "eel a se#se

     pride, accomplishme#t, a#d sel"co#"ide#ce. $hey are participati#g i# acti'ities that theyare good at a#d that stretch their s&ills a#d a!ilities e'e# "urther.

    Employees %a#t to de'elop a#d gro% their s&ills. I" they(re #ot a!le to do this i# your o!s, they(ll "i#d o#e %here they ca#. $his i#cludes opportu#ity. I" a# employee ca#(t see

    a path to co#ti#ued gro%th i# their curre#t orga#iatio#, they are li&ely to loo& else%here

    "or a career de'elopme#t or promotio# opportu#ity. a&e sure that you(re tal&i#g %iththem a#d that you o% their hopes a#d dreams.

    • Contribution of work to the organiation!s business goals

    a#agers #eed to sit %ith each reporti#g employee a#d discuss the rele'a#ce o" the

    employee(s o! a#d &ey co#tri!utio#s a#d deli'era!les to the o'erall strategy a#d

     !usi#ess pla# o" the orga#iatio#. Employees #eed to "eel co##ected a#d that they are parto" a# e""ort that is larger tha# ust their o!.

    $oo ma#y ma#agers assume that the employee %ill recei'e the commu#icatio# "rome3ecuti'e sta"" a#d ma&e this leap. $hey do#(t. $hey #eed your help to u#dersta#d a#d

    co##ect their o! to the !igger picture. I" they(re #ot part o" it, you(ll lose them.

    • "utonomy and independence

    8rga#iatio#s tal& a!out empo%erme#t, auto#omy, a#d i#depe#de#ce, !ut they are #otsomethi#g that you ca# do to people or gi'e them. $hey are traits a#d characteristics that

    a# employee #eeds to pursue a#d em!race.

    9ou are respo#si!le "or the %or& e#'iro#me#t that e#a!les them to do this. $hey are

    respo#si!le "or doi#g it.

    A colleague prese#ted a sessio# a!out the 8 ri#ciples at a rece#t compa#y e'e#t. -e poi#ted out that !y creati#g a culture o" accou#ta!ility, you create empo%erme#t as

    employees o%# a#d e3ecute their respo#si!ilities. 7ithout this, your !est employees %ill

    lea'e.

    • #mployees resign when their compensation package is below market

    $hey ca# get more mo#ey !y cha#gi#g o!s the last "igure I sa% %as a# a'erage 10:i#crease "or goi#g to a #e% employer. Especially "or hardto"ill positio#s, you #eed to

    stay o# top o" the competitio# or you4ll lose s&illed employees

    • Organiation!s financial stability

    i#a#cial i#sta!ility; a lac& o" sales, layo""s or reduced %or& hours, salary "reees,success"ul competitors highlighted i# the #e%s, !ad press, employee tur#o'er , mergers

    a#d acquiri#g compa#ies, all lead to a# employee(s "eeli#g o" i#sta!ility a#d a lac& o"

    trust.

    http://humanresources.about.com/od/careersuccess/qt/steps-to-create-a-career-development-plan.htmhttp://humanresources.about.com/od/glossarye/a/empowerment_def.htmhttp://humanresources.about.com/od/involvementteams/a/empowerment.htmhttp://humanresources.about.com/od/involvementteams/a/empowerment.htmhttp://humanresources.about.com/od/involvementteams/a/empowerment.htmhttp://humanresources.about.com/od/compensation-structure/tp/employee-benefits-package.htmhttp://humanresources.about.com/od/employeeretentio1/g/turnover.htmhttp://humanresources.about.com/od/glossaryt/g/trust.htmhttp://humanresources.about.com/od/careersuccess/qt/steps-to-create-a-career-development-plan.htmhttp://humanresources.about.com/od/glossarye/a/empowerment_def.htmhttp://humanresources.about.com/od/involvementteams/a/empowerment.htmhttp://humanresources.about.com/od/involvementteams/a/empowerment.htmhttp://humanresources.about.com/od/compensation-structure/tp/employee-benefits-package.htmhttp://humanresources.about.com/od/employeeretentio1/g/turnover.htmhttp://humanresources.about.com/od/glossaryt/g/trust.htm

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    Employees %ho are %orried te#d to lea'e. a&e e'ery cha#ge a#d pote#tial cha#ge

    tra#spare#t.

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    http://humanresources.about.com/od/resinin!"rom!your!

     #ob/a/top!10!reasons!employees!$uit!their!#ob.htm

     Jose Luis Pelaez/ Iconica/ Getty Images

    Updated October 07, 20!"

    )e"ore you ca# impro'e employee satis"actio# a#d employee e#gageme#t, you #eed to o%

    %hat to impro'e. $he a##ual Society "or -uma# 6esource a#ageme#t =S-6> 2011

    Employee ?o! Satis"actio# a#d E#gageme#t Sur'ey ide#ti"ies the "actors that are importa#t i#

    employee o! satis"actio# a#d employee e#gageme#t as percei'ed !y employees.

    $he sur'ey(s purpose is to assist employers to de'elop the right programs a#d practices %he#they see& to ha'e a# impact o# these t%o "actors that are critical to employee morale a#d

    moti'atio#.

    U#dersta#di#g employee pre"ere#ces pro'ides guida#ce "or the o%ledgea!le allocatio# o"

    resources.

    $he sur'ey e3plored @5 aspects o" employee o! satis"actio#, di'ided i#to "our topic areas

    career de'elopme#t, relatio#ship %ith ma#ageme#t, compe#satio# a#d !e#e"its, a#d %or&

    e#'iro#me#t. Added i# 2011, the sur'ey also e3plored employee e#gageme#t.

    #atis$action #ur%ey &esults

    Accordi#g to this study, BC@: o" U.S. employees reported o'erall satis"actio# %ith their curre#t

     o!, %ith D1: o" employees i#dicati#g they %ere 'ery satis"ied( a#d D2: some%hat satis"ied.(

    +espite this high perce#tage o" satis"ied employees, the le'el o" o'erall satis"actio# has !ee#

    tre#di#g do%#%ard si#ce 200F.

    http://humanresources.about.com/od/resigning-from-your-job/a/top-10-reasons-employees-quit-their-job.htmhttp://humanresources.about.com/od/resigning-from-your-job/a/top-10-reasons-employees-quit-their-job.htmhttp://humanresources.about.com/od/employeesurvey1/g/employee_satisfy.htmhttp://humanresources.about.com/od/glossarys/g/shrm.htmhttp://www.shrm.org/surveyshttp://www.shrm.org/surveyshttp://humanresources.about.com/od/employeesurvey1/g/employee_satisfy.htmhttp://humanresources.about.com/od/Employee-Engagement/qt/Employee-Engagement.htmhttp://humanresources.about.com/od/glossarye/g/employee-morale.htmhttp://humanresources.about.com/od/glossarye/g/employee-motivation.htmhttp://humanresources.about.com/od/resigning-from-your-job/a/top-10-reasons-employees-quit-their-job.htmhttp://humanresources.about.com/od/resigning-from-your-job/a/top-10-reasons-employees-quit-their-job.htmhttp://humanresources.about.com/od/employeesurvey1/g/employee_satisfy.htmhttp://humanresources.about.com/od/glossarys/g/shrm.htmhttp://www.shrm.org/surveyshttp://humanresources.about.com/od/employeesurvey1/g/employee_satisfy.htmhttp://humanresources.about.com/od/Employee-Engagement/qt/Employee-Engagement.htmhttp://humanresources.about.com/od/glossarye/g/employee-morale.htmhttp://humanresources.about.com/od/glossarye/g/employee-motivation.htm

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    Employees i# orga#iatio#s that had "e%er tha# 100 employees e3pressed satis"actio# more

    "reque#tly tha# employees i# larger orga#iatio#s %ith 2500 or more employees. S-6 "ou#d

    #o sig#i"ica#t di""ere#ces i# o'erall o! satis"actio# !y employee i#dustry, o! te#ure, race or

    ge#der.

    E#gageme#t, ho%e'er, is a di""ere#t story. $he U.S. has a pro!lem %ith employee e#gageme#t.

    I# this year(s S-6 sur'ey, employees %ere o#ly moderately e#gaged [email protected]> o# a scale o" 1 to 5,

    %here 5 is highly e#gaged. i#di#gs !y the Gallup orga#iatio# a!out dise#gaged employees 

    %ere highlighted i# the Wall Street Journal .

    Gallup "ou#d 1F: o" 1,000 people i#ter'ie%ed acti'ely dise#gaged at %or&.

    $hese %or&ers complai# that they do#4t ha'e the tools they #eed to do their o!s. $hey do#4t

    o% %hat is e3pected o" them. $heir !osses do#4t liste# to them.

     'op 0 &etention strategic plans

    Employees ide#ti"ied these "actors as their top 10 most importa#t co#tri!utors to their o!

    satis"actio#.

    •  Job security( )*+, $or te $ourt consecuti%e year, as te top most importantdeterminant o$ -ob satis$action" .)7+ o$ employees are %ery satised orsatised it teir -ob security"1

    • Opportunities to Use #ills and 3bilities( )2+" .74+ are satised or %ery

    satised in teir orplace"1

    • Organization5s 6inancial #tability( !!+" .)*+ are satised or %ery satised"1

    • &elationsip it Immediate #uper%isor( !!+" .7*+ are satised or %erysatised"1

    • ompensation( !4+" .)+ are satised or %ery satised"1

    • 8enets( !*+" .)!+ are satised or %ery satised"1

    ommunication beteen 9mployees and #enior :anagement( !*+ .!4+ aresatised or %ery satised"1

    •  'e ;or Itsel$( !*+" .7)+ are satised or %ery satised"1

    • 3utonomy and independence( !2+" .)

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    • :anagement5s &ecognition o$ 9mployee Per$ormance( 4ibility $or ;or?Li$e 8alance( *=+" .)!+ are satised or %ery satised"1

    • &elationsips it oorers( *=+" .7)+ are satised or %ery satised"1

    S-6 6eports that )e#e"its %hich had !ee# i# the top t%o co#tri!utors to o! satis"actio# si#ce

    2002 slipped to "i"th place. 6elatio#ship %ith their immediate super'isor is #e% this year to the

    list o" top "i'e most importa#t o! satis"actio# co#tri!utors. Amo#g S-6(s other results;

    Jha#ce "or career ad'a#ceme#t =@H:> has !ee# decli#i#g si#ce 2002. Joachi#g, me#tori#g, a#d

    successio# pla##i#g are less importa#t i# compa#ies %ith less tha# 100 employees.

    = 9mployee 9ngagement onditions

    Employee e#gageme#t, accordi#g to the S-6 report, is more li&ely to occur %he# certai#

    co#ditio#s e3ist. Employers ca# ma3imie employee e#gageme#t 'ia impro'i#g these "actors.

    $he perce#tages i#dicate the o'erall satis"actio# o" employees %ith the listed co#ditio# o"

    e#gageme#t. $he items are listed i# order "rom the employee sur'ey results; most satis"ied to

    least satis"ied %ith the co#ditio# i# their orga#iatio#.

    •  'e or itsel$( 7)+

    • &elationsips it co?orers( 7)+

    • Opportunities to use sills and abilities( 74+

    • &elationsip it immediate super%isor( 7*+

    • ontribution o$ or to organization5s business goals( 7+

    • 3utonomy and independence( )

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    •  Job?specic training( !!+

    • ommunication beteen employees and senior management( !4+

    • Organization5s commitment to pro$essional de%elopment( !4+

    • Aetoring( 4

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    importa#t compo#e#ts o" their li'es, stress a#d u#happi#ess result. 7or&li"e !ala#ce e#a!les

    employees to "eel as i" they are payi#g atte#tio# to all the importa#t aspects o" their li'es.

     

    )ecause ma#y employees e3perie#ce a perso#al, pro"essio#al, a#d mo#etary #eed to achie'e,%or&li"e !ala#ce is challe#gi#g. Employers ca# assist employees to e3perie#ce %or&li"e

     !ala#ce !y o""eri#g such opportu#ities as "le3i!le %or& schedules,  paid time o"" =$8> policies,

    respo#si!le time a#d commu#icatio# e3pectatio#s, a#d compa#yspo#sored "amily e'e#ts a#d

    acti'ities.

    a#agers are importa#t to employees see&i#g %or&li"e !ala#ce. a#agers %ho pursue %or&li"e

     !ala#ce i# their o%# li'es model appropriate !eha'ior a#d support employees i# their pursuit o"

    %or&li"e !ala#ce. $hey create a %or& e#'iro#me#t i# %hich %or&li"e !ala#ce is e3pected,

    e#a!led, a#d supported. $hey retai# outsta#di#g employees to %hom %or&li"e !ala#ce is

    importa#t.

    What %s Employee Turnover&In human resource terms, employee turnover is a measurement of how long your employees stay

    with your company and how often you have to replace them. Any time an employee leaves your

    company, for any reason, they are called a turnover or separation.

    'alculatin Employee Turnover

    Employee turnover is calculated by dividing separations by the total sta: employee turnover =

    number of separations / average number of employees.

    enerally, it is stated as an annual percentage. If you lost three staers in the past year out of your

    sta of !", your annual turnover would be: employee turnover = # separations / !" employees = .

    $"%& = ".%&' annual turnover.

    If instead you had three staers (uit last month, and your total team is !" employees, your turnover

    rate would be: employee turnover = # separations in a month / !" employees = .$"%& = ".%&'

    monthly. )ou would multiply this by *& to calculate an annual rate, which assumes this same

    turnover rate will continue for the entire year: ".%&' monthly + *& months = -.&!' annually, for a

    loss of three staers each month.

    As a double chec if this turnover continued, we would lose three staers per month + *& months =

    #" for the year. And if we divide the #" turnovers by our total sta of !", we would get -.&"' 0the

    very slight dierence is due to rounding1.

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    2hat does this mean to you as a manager3 2ell, A -' turnover rate in a team of !" people means

    that you will have to hire and train #" new people a year. 4hat is a lot of time you could be using

    otherwise to manage your department and improve your own sills5

    'auses o" Employee Turnover

    4here are two main categories of turnover: voluntary and involuntary. Each of them has dierentcauses.

    Voluntary turnover is when an employee (uits. 4his can be due to 6nding a better position at

    another company, a con7ict with a supervisor or a personal reason, such as needing to stay home

    with a family member.

    Involuntary turnover is when an employee is laid o or 6red, generally due to reducing sta

    because of a business downturn or change in business focus or because of an employee taing

    some action that is cause for termination, such as theft.

    ( Reasonable Level o" Turnover

    4here will be times where employees leave the company, and so a goal of 8ero percent turnover is a

    recipe for disappointment. 4o come up with a level that is reasonable, companies often loo to

    industry averages. A goal might be to eep turnover to a level no higher than the average for the

    industry.

    4hey might also come up with some additional metrics based on level of responsibility so, for

    e9ample, the turnover for audit sta in an accounting 6rm might be evaluated separately from that

    of audit partners.

    %mpact o" a Turnover on a 'ompany

    4he speci6c impact of replacing an employee varies based on many factors, including the diculty

    of 6lling the position, the amount of training re(uired for a new employees and speci6c costs, such

    as recruiter fees or advertisements.

    In the fast food industry, it may be necessary to 6ll some positions every few months or even more

    fre(uently. 2orers in this industry tend to be unsilled and may change positions often since there

    are many similar options available. In terms of costs, these positions generally re(uire limited

    training to reach full productivity, so replacing personnel will not tend to have much impact on the

    business.

    ;n the other hand, company presidents have often been with the same company for much of their

    career and tend to be in the position for years, leading to very low turnover in that position. 2hen a

    company president leaves a tremendous amount of sill and nowledge will leave, which can impact

    the business for years to come.

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    The 'ost o" Turnover

    Turnover costs can be both direct and indirect.

    ?A insurance for

    employees who no longer wor for the company.

    Indirect costs can be harder to (uantify and include things lie lost sales or customers due to

    ine9perienced sta or being shortstaed, lost nowledge of company operations that has to be re

    created later and the impact on morale of people leaving the company.