5 Unexpected Reasons Why Employees Quit
While other businesses are becoming increasingly stable, many companies experience constant employee turnover. This not only incurs costs but also affects the development of the entire system. So, what are the reasons for continuous employee resignations? Let’s explore the information in the article below.
Employee resignations cause significant losses for businesses
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Explaining why employees resign
Resignation due to KPIs (accounts for 34%)
KPIs are always associated with numbers because their main purpose is to quantify and measure job performance. However, quantification and digitalization are just the first steps in the KPI process, and employees often fall into one of the following two scenarios:
- When KPIs are not met: Employees will immediately have their salaries reduced, bonuses cut, and be reprimanded by their superiors.
- When KPIs exceed targets: This stems from the boss thinking that the previously set KPIs are outdated and that achieving them is too easy for the employee.
Therefore, many people find themselves in a state of frustration, and some even resign frequently due to an “allergy” to the three letters “KPI”. Consequently, managers and employees need to understand the true meaning behind the numbers in KPIs to set reasonable requirements for the development of both the employees and the company.
Read more: What is an SLA? Understand SLAs and KPIs to guide development
Salary and Compensation (accounts for 29%)
One of the main reasons for resignation is salary and compensation policies. Businesses should remember the immutable principle of equal pay for equal work.
A good compensation policy is the secret to retaining talent for many businesses
When salaries are fair and commensurate with the effort employees put in, they will be motivated to perform to their full potential. At the same time, the business will be able to retain talented individuals for the long term.
In addition to salary, bonuses are a tool for business managers to stimulate enthusiasm, positivity, commitment, a sense of responsibility, and maximize employee work efficiency. Furthermore, appropriate salary and bonus levels will increase employee productivity and create a “lever” for the company’s strong future growth.
Reference article: Human Resource Management Strategies for Each Stage of Business Development
Many managers, when delegating tasks to employees, provide sufficient human, material, and financial resources but forget to grant authority. In reality, many employees resign because of their boss, as they are not trusted or allowed to take initiative in their own work.
The advice is to let employees be proactive and have full decision-making power in their work. Everyone wants to work long-term for a company where they can realize their potential. If business owners maintain this perspective, employees will never consider leaving to find a better work environment.
Limited authority in work is also a reason why employees resign
Internal conflicts (accounts for 8%)
In many cases, internal conflict is the main reason for resignation for many employees. First and foremost, a work environment with many conflicts will be stressful and burdensome. When these negative emotions are brought into work, they will reduce work efficiency and can even lead to failures because staff cannot agree on work methods.
Regarding disagreements and conflicts within the company, managers should not intentionally ignore them. Instead, you should use your leadership skills to resolve everything as smoothly as possible.
Other reasons (accounts for 16%)
There are countless other reasons that cause employee dissatisfaction, such as: strict and rigid rules and regulations; no opportunities for personal development; being too bored with the job; efforts not being recognized, etc.
Solving the problem of employee resignations is not easy, but finding a solution will bring great benefits to the sustainable development of the business.
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