10 Reasons Employees Stay with an Organization
If you are experiencing angst over the upcoming “turnover tsunami”, then remind yourself that focusing on the basics is still best. While COVID-19 may come and go (we hope), the reasons that employees come and go do not change all that much. COVID-19 and remote work opportunities have simply underlined the need to address employee concerns and meet their life and career needs whenever you can.
If employee retention is a focus area for your organization, you may want to consider asking this question during the discussion phase when giving your next employee performance review:
“What would it take for you to leave?”
In fact, you may want to do it sooner. You might be very surprised at the responses you hear. Some employees may say “I would never leave!” This may be a reflection on your culture (do they feel they have permission to tell you their true feelings?) or it could also mean they are happy where they are, which says a lot about your organization.
However, hopefully other staff members will feel open enough to respond with the reasons they would consider leaving your company since this will provide valuable insight into how you can make improvements to retain your most valued employees.
Why wait until an exit interview to determine why an employee decided to leave? Engage your good performers when the opportunity presents itself and find out what might cause them to leave before they really do leave.
Beverly Kaye and Sharon Jordan-Evans surveyed more than 17,000 employees with various organizations for their book Love ‘em or Lose ‘em about reasons why employees stay with an organization. Below are the top 10 reasons from their survey:
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- Exciting work and challenge
- Career growth, learning and development
- Working with great people
- Fair pay
- Supportive management/good boss
- Being recognized, valued and respected
- Benefits
- Meaningful work and making a difference
- Pride in the organization, its mission and its products
- Great work environment and culture
Notice that in several of these cases (underlined) and maybe a few more, remote work can have an impact on job satisfaction. Are staff getting opportunities to develop and meet with leaders? Are they able to develop relationships with their team and their boss? Has the culture changed now that the company is remote, or wearing masks 24-7? What about recognition? Is everyone just too busy?
It’s often assumed that pay is the chief lure for an employee to jump ship. However, that is clearly not the case. Even if you’ve had to freeze salaries over the past couple of years, if you can provide your employees with challenging work, give them the opportunity to learn and grow, and have created a work environment of support and camaraderie, you have a very good chance of being able to retain your top performers.
But, of course, the best way to find out where you stand is by asking your employees directly. Take some time to find out from your employees why they stay with your organization and, more importantly, why they might leave. If you have questions regarding employee retention, please contact a member of Catapult’s HR Advice team at 919-878-9222 or 336-668-7746.
Frequently Asked Questions
What are the top reasons employees stay with an organization?
Research consistently identifies: career growth opportunities, a relationship with their direct manager, meaningful work, competitive compensation (especially equity), workplace flexibility, a supportive and inclusive culture, recognition and appreciation, strong relationships with colleagues, clear organizational mission and values alignment, and confidence in senior leadership. Note that most drivers are relational and cultural — not just financial.
How important is manager quality to employee retention?
Extremely important. Gallup research finds that managers account for 70% of variance in employee engagement scores, and engagement is one of the strongest predictors of retention. “People leave managers, not companies” is borne out in data — employees with managers who provide regular feedback, advocate for them, and invest in their development are significantly less likely to leave.
How does career development impact retention?
LinkedIn’s Workforce Learning Report found that 94% of employees would stay longer at a company that invested in their career development. This includes both formal (training, certifications, tuition assistance) and informal investment (stretch assignments, cross-functional projects, visibility with senior leaders). Employees who see a path forward are far less likely to look externally.
How can small businesses compete with large employers on retention?
Small businesses often can’t compete on salary or benefits breadth, but they can win on: direct access to leadership, autonomy and responsibility that large companies can’t offer junior staff, faster career advancement, mission clarity, flexibility, and a sense of individual impact. Identifying and communicating these differentiators is key to both recruiting and retention.
What is the role of recognition in employee retention?
Recognition — both monetary and non-monetary — is a top predictor of engagement and retention. Studies show that employees who feel their work is recognized are 45% less likely to leave in the next two years. Recognition should be timely, specific, and delivered in the manner the employee finds meaningful. Manager training on effective recognition is one of the highest-ROI investments an HR team can make.
