Top Five Reasons for Employee Turnover and How to Reduce Them

Employee turnover continues to pose a significant challenge to businesses. Not only does the cost of losing talent involve training and recruitment expenses, but it can also impact team productivity and morale. For a business to have long-term success, it is crucial for them to retain their top talent, especially in a competitive job market. However, many companies still lack the understanding of what causes high employee turnover and how to avoid these pitfalls.

Keep reading to understand the top five reasons for staff turnover and for our practical strategies to help your business navigate these to keep your top employees happy and motivated.

1. Lack of career advancement opportunities

One of the main reasons why employees leave their current role is a lack of career growth. Career progression is one of the top priorities for employees when seeking a job, and organisations that fail to provide this can often experience high turnover. According to our 2024 Global Workforce of the Future Report, 27% of employees believe that their career is not progressing in their current role. It is typical that it is when an employee feels that there are no opportunities for advancement or development, this is when they begin searching for a new job.

Businesses can look to offer internal or external training and development programmes to combat this. Implementing processes like regular performance reviews, having clear career progression frameworks as well as mentorship opportunities will allow employees to feel supported in developing their career. 23% of employees would like to move to a job that gives them skills to make them more employable in the future (GWoF), demonstrating the opportunity employers have to keep talent by prioritising their development. Making sure to encourage your employees to continuously learn and upskill shows that your organisation values its employees and is equally invested in their success.

2. Poor management practices

Employees who feel unsupported, micromanaged, and undervalued by their managers are more likely to seek opportunities elsewhere. The relationship between employees and their managers can play a crucial role in job satisfaction. Lack of communication, not recognising achievements as well as unclear expectations can lead to a negative work environment that leads to employees finding better leadership elsewhere.

To improve this, companies should invest in leadership development programmes. Among employees considering leaving their jobs, only 46% of employees (GWoF), showing how much room for improvement there is. Learning how to provide constructive feedback, create inclusive supportive environments and active listening should be some of the key training aspects managers should be offered. Managers should also consider regular one-to-one meetings in order to build stronger relationships between themselves and their employees, which can then lead to greater engagement and motivation.

These interventions are important to consider at all levels of management. Often, middle managers can be left to support a large pool of employees, with little support or oversight offered to them. It is important to consider their training and what assistance they are given by their managers as well. Organisations can significantly struggle when people leave middle management roles, as the support network for the employees they manage can be left unseen to and can have a detrimental knock-on effect.

3. Work-life imbalance

For many workers today, work-life balance is of extreme importance, and it is crucial for them to maintain a healthy work-life balance to be satisfied with their role. Employees who experience constant stress and who feel overworked often struggle to positively manage their personal and professional responsibilities. A work-life imbalance can play a significant factor in employee turnover, especially in today’s workplace where flexibility in working arrangements has become more common.

Offering flexible working options such as flexible hours, hybrid or remote working as well as generous paid time off where possible are all strategies businesses can consider to help support their employees. It is important to encourage your employees to utilise their annual leave and avoid working overtime, which helps creates a healthier work-life balance. It is equally important that people in leadership positions demonstrate a healthy approach to work, by maintaining regular business hours and proactively coping with stress, as this sets a precedent that employees should do the same.

4. Excessive workloads

A major contributor to employee burnout is excessive workloads, which then lead to high turnover rates. Employees who feel they are consistently asked to take on more work than they can handle can quickly become stressed and fatigued. Our GWoF report states that 20% of employees worry about burnout or working too much. As a result of this, employees are more likely to seek a more manageable work environment elsewhere.

Consider if the number of employees within your organisation has reduced over the past year, and what this meant for the remaining employees. Often, when staff reductions are made, this causes a spike in stress and workloads for those team members who are left to pick up the work. It is crucial that employers ensure that workloads are managed fairly and evenly distributed. Encouraging collaboration and providing tools and technology such as communication platforms such as Microsoft Teams, employee wellbeing platforms that allow employees to learn things like how to manage their stress, and automation to streamline repetitive tasks allows employees to work efficiently and can also help prevent burnout that can subsequently lead to turnover. Collaboration and resourcing tools improve workload visibility which can also help employees feel comfortable speaking up when they are feeling overwhelmed, ensuring that preventative measures can be put in place before burnout sets in.

5. Cultural misalignment

When an employee’s personal values don’t align with that of their employer’s, it is more likely for that employee to seek opportunity elsewhere. Disengagement, dissatisfaction as well as frustration are common symptoms when an employee doesn’t feel like they align with their company’s objectives. This can include leadership approaches, core values or even communication styles.

During the hiring process it is important organisations focus on the cultural fit of the candidate. Being transparent about the company’s values and expectations can help ensure alignment from the start. Including an introduction to the company and its values on your website and job descriptions can be a useful way to offer visibility to potential new hires.

Furthermore, employers should always foster a positive and inclusive workplace culture where employees feel respected and valued, which can significantly improve employee morale and lead to a decrease in turnover. This can be done by offering team-building activities within the workday as well as frequent social activities to strengthen team bonds.

Self-Reflection: Actionable Questions for Management

To discover the root causes of employee turnover with your business, it is essential for management to regularly reflect on company practices and leadership styles. To do so, here are some key questions to ask when evaluating your team’s policies and what could be done to improve staff retention and engagement:

1. Are we providing a clear career growth path for our employees?
2. Do our managers and leadership team have the skills required to lead their teams effectively?
3. Do our employees have a healthy work-life balance? Can we do anything to improve this?
4. Is there strong cultural alignment between our values and that of our employees?

Prioritising proactive retention strategies

High employee turnover is costly, so it is important employers understand the cause of turnover to prevent it, as it is not inevitable. By addressing the top five reasons for turnover mentioned above, companies can foster a more positive work culture that will help encourage employee loyalty and engagement. It is also crucial for leaders to engage in continuous self-reflection and have open communication lines with their employees to ensure that staff needs are being met.

If you’re looking to refine your retention strategies or need expert guidance on managing your workforce, Adecco can help. We work with job seekers and employers every day to understand what motivates them and what can be done to help foster employee satisfaction and business growth. Speak with our team today to gain expert insights and receive support in creating a recruitment strategy which will help you find employees aligned to your business goals and values.