10 reasons employees resign

Employee turnover is expensive. Estimates show that, on average, it costs 33% of an employee's salary to replace them. Aside from the financial cost of replacing a team member, an employee's departure can negatively impact the morale of their fellow colleagues, lowering productivity. 

Given the high cost of attracting, hiring, and training employees, it pays to keep employee retention strategies top of mind. Are you struggling to keep your best employees? Here are 10 common reasons why people leave jobs, with tips on how to reduce turnover. 

Top reasons why people leave their jobs 

1. Employees feel underappreciated and undervalued

Employees want to know their contributions are valued. Appreciation doesn't have to come in the form of awards or financial incentives; it can be as simple as communicating in your employees' workplace love languages, whether that's  verbal recognition or providing positive feedback.

2. Lack of communication around compensation 

Fair compensation is a key factor in reducing turnover, but it's equally important to be transparent about salary raises, and to provide a rationale if a salary increase is denied. If employees are provided with clear communication and transparency around compensation, they'll be less inclined to jump ship. 

3. A desire for more flexibility 

After months - or years - of working remotely during the pandemic, many employees want the flexibility of a hybrid schedule. That's at odds with the corporate desire to bring workers back into the office. 

Instead of strictly mandating a return to the office, create rewards and opportunities for in-office time. (Think: Mentoring, recognition for voluntary participation in social activities, and giving managers greater discretion in advancement or compensation.)  

4. Middle management burnout

Middle managers are stuck enforcing policies dictated by leadership while demanding more from thinly stretched teams. It's an often thankless position.  When work-life balance erodes for middle managers, they're more likely to consider a switch to individual contributor roles. Leaders need to show these managers appreciation to keep them engaged and on board.

5. Decreased confidence in the wake of layoffs 

Employers see sharp drops in their employee satisfaction Glassdoor ratings after layoffs. Those effects lingered up to 180 days following layoffs in 2022 and 2023. 

To minimize the impact of layoffs on company culture, leaders should allow for open dialogue around why downsizing was necessary, and think carefully about how expenditures could be perceived. For example, rank-and-file workers are not going to look kindly on a senior leadership retreat at a pricey resort in the wake of a headcount reduction.

6. Unrealistic goals and performance objectives

Performance objectives should be realistic and planned well in advance. Celebrating employees when they hit their targets will help with employee retention because they'll feel appreciated within the organization. Individual success contributes to the overall success of the company.

7. Lack of a path for career advancement 

Workers want a clear idea of what an internal promotion looks like for their position, and a plan to get there. Companies can motivate team members and reduce turnover by communicating paths for employees to move up the ranks internally and highlighting employees who have grown with the organization. Managers can also support employees with opportunities to learn and develop new skills. 

8. Poor management

As the old saying goes: "People leave managers, not jobs". One of the biggest factors that contributes to employee turnover is bad management. In the first quarter of 2024, 62% of "management" references on Glassdoor were in negative reviews. 

Don't underestimate the role of emotional intelligence. If your company has a staff retention problem, invest in training your managers on how to ask for feedback, admit mistakes, and adapt their management style to the employee, as opposed to a "one size fits all" approach. 

9. The company's mission and direction are unclear

Employees care about their company's values and reputation. Simply put, company branding is how your company is perceived by the public, and what employees can expect if they choose to work for you. Branding may include being vocal about social issues,  supporting working parents in the organization, and honoring commitments to staff and clients. Senior leaders earn points when they say what they mean, mean what they say, and act in line with the company's mission and values. Note: If neutrality is a company value, management must be consistent in applying it. 

10. Uninspiring culture

Compensation will always be important, but - for many long-term employees - it's not enough to overcome burnout and a toxic work environment. Culture creates loyalty.

Reviews for Glassdoor's Best-Led Companies show that employees appreciate when leaders exemplify the company culture, and 63% of Glassdoor reviews that referenced culture this year indicated that it was a positive attribute of the company. 
Companies spend considerable resources to attract and hire the right people, so it pays to prioritize employee retention. Learn how top companies are leveraging Glassdoor to understand their workforce and retain top talent.