The Top 5 Reasons Why Employees Leave a Company

In this blog post, we look at the key reasons why employees leave companies, how to avoid these situations, and how to keep employees motivated and loyal.

It’s a concept management and HR teams continue to puzzle over, no matter how many years of experience they have in their field. Some companies have a high employee turnover rate, and it can be difficult to figure out why. The reasons are often not what you’d expect and can be easily rectified with a little awareness from management. For example, HR teams often mistakenly believe that people leave their jobs because of monetary reasons. However a 2017 study by Office Vibe revealed that salary is in fact just 12% of the reason why employees leave a company.

So here’s how your company can avoid brain drain and retain top talent in a happy, cohesive work environment.

1. Inflexible work arrangements

Even before the pandemic, office workers were expecting a more flexible schedule with the option to work from home at least once a week and perhaps work remotely for extended periods of time. Our increasingly digitized work environment means that there’s often no reason why employees shouldn’t be able to work remotely, except for a lack of trust from management. 

When management denies their employees the freedom to work flexibly, they’re creating an environment of resentment, especially when more and more companies are allowing remote working. In their study, Office Vibe found that 37% of employees would quit their current position for a role that offers more flexibility, and 82% said that a more flexible work schedule would increase their loyalty to their current company. 

2. Feeling undervalued

    In a 2017 study by Forbes, 66% of employees said they would quit their job if they felt under-appreciated, and this jumps to 76% among millennials. These numbers are staggering, especially seeing as this issue is something that could easily be rectified by management. 

    To make sure your employees feel valued, you can hold Friday weekly meetings that champion the good work done that week. People can nominate their ‘employee of the week’ and read out the reason why they’ve been so impressed. It’s a great way to bring your team together and will make everyone feel good. You’ll soon find that a simple “thank you” or “well done” goes a very long way!

    3. No opportunity to progress

      Progression within a role comes in different forms to different people. Some may feel that to progress they need a promotion or a salary increase and others may feel that progression is learning new skills. During these COVID-times, many companies have been forced to tighten their purse-strings and promotions and pay increases have been put on hold.

      That’s why there’s never been a better time to invest in the educational development of your employees. Offering digital language learning as a corporate benefit, for example, would empower employees to work in overseas offices or work with new international customers or clients. The Babbel for Business package can be applied to the entire company at a flat rate, which means that every single employee will feel valued and appreciated. 

      4. A lack of trust and autonomy

      Trust and communication are crucial for a positive employee-manager relationship. This can fall apart for all sorts of reasons — because of workload for example, or team size. However, ensuring management has a strong, trustful relationship with employees will help your team thrive in their work environment.

      What does this mean? Management can be seen not to trust their employees when they micro-manage their workload and when they don’t let them manage their own time. If managers don’t give their employees the autonomy to take charge of their own role, then the employee is likely to feel demotivated, mis-trusted and will soon find work elsewhere. 

      To ensure this doesn’t happen, make sure you guide your employees through their role rather than tell them what to do. Learn to trust your team and provide support as and when they need it.

      5. Bad company culture

      Company culture starts from the top and is one of the most crucial aspects of retaining staff and keeping them happy. Every company has a different culture and when working at its best should make people feel like they belong in their workplace. 

      So if a company culture is unwelcoming or there’s a culture of bullying or if new people aren’t made to feel welcome, there’s a high chance that staff members will leave. In fact, a study conducted by Hays in 2017 shows that 47% of people who are actively looking for new positions are doing so because of a bad company culture. 

      So how can your management team champion a positive company culture? A strong corporate benefit package, such as offering fitness benefits and learning opportunities, will help foster a culture of growth and well-being. Weekly meetings and social events will help your team get to know each other and encourage inter-departmental bonding, and a communicative, open, and approachable management team will ensure employees feel comfortable, relaxed, and valued in the workplace.

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