If you feel like your company is in a never-ending cycle of hiring new employees only to see them leave shortly after, you are not alone. Employee retention remains a major challenge for many businesses, and understanding the root causes can help you make meaningful changes. Although there may be areas of improvement within internal operations that could improve employee retention, there are also many factors out of your control.
But let us explore five key reasons why employees leave– and how you can address them.
5 Reasons Why Employees Leave Their Jobs
1. Better Pay and Benefits
Compensation continues to be one of the biggest motivators for employees, and rightfully so. When annual increases are consistently lower than cost-of-living increases, employees can find themselves financially burdened.
If employees struggle to meet their financial needs, they’re more likely to leave for better-paying opportunities– even if they like your company.
Potential Solutions:
- Regularly benchmark salaries against industry standards.
- Offer competitive benefits, including healthcare, retirement plans, and wellness programs.
- Implement performance-based incentives to reward employee contributions.
2. Skills Mismatch
An employee might appreciate your company but dislike their specific job responsibilities. If their role is too structured, too routine, or outside their comfort zone, they may disengage and leave.
Potential Solutions:
- Make sure you have a well-structured hiring process that assesses both skills and cultural fit.
- Provide clear job descriptions and realistic job previews.
- Offer internal mobility opportunities for employees to transition into roles better suited to their strengths.
3. Poor Work Team Dynamics
A toxic workplace culture can quickly drive employees away. If teams reject new hires over small mistakes or if negative behaviors go unchecked, morale and retention suffer.
Potential Solutions:
- Promote a positive and inclusive workplace culture.
- Address toxic behaviors early through clear policies and conflict resolution strategies.
- Foster strong team-building activities and mentorship programs.
- Create an open and supportive environment for everyone.
4. Lack of Professional Training and Development
Employees need the right resources to succeed. If they feel unsupported, criticized or unable to grow in their roles, they will probably look for opportunities elsewhere.
Potential Solutions:
- Invest in structure training and onboarding programs.
- Provide mentorship and continuous learning opportunities.
- Offer career development plans to show employees a path for growth.
5. Poor Workplace Management
The saying, “People don’t leave companies, they leave managers,” remains true. Employees who experience poor communication, micromanagement, or lack of leadership support are far more likely to disengage and leave.
Potential Solutions:
- Train managers in leadership and communication skills.
- Encourage open and transparent communication between leadership and employees.
- Conduct regular employee feedback sessions to address concerns early.
Quiet Quitting and Disengagement Trends
Beyond traditional turnover, businesses are still facing the challenge of “quiet quitting”– when employees disengage and do only the bare minimum to stay employed. While the term is no longer new, the issue continues to evolve.
The Glassdoor Worklife Trends 2025 Report found that 65% of employees are feeling trapped in their current roles, and employee satisfaction with career opportunities has dropped over the past two years across 10 industries. Employees who feel undervalued, overworked, or unchallenged often disengage, leading to reduced productivity and morale issues.
How to Spot Quiet Quitting
- Employees withdrawing from meetings and workplace interactions.
- Consistently low effort or barely meeting performance expectations.
- Increased use of PTO or taking longer to complete routine tasks.
How to Prevent It
- Conduct Employee Surveys: Regularly check in with employees and identify potential concerns or issues before they escalate.
- Support Manager Training: Equip leaders with the skills to recognize disengagement and take proactive steps to support managers.
- Offer Competitive Compensation: Ensure wages and benefits are aligned with market standards.
- Create Clear Career Paths: Employees need to see growth opportunities to stay engaged and motivated.
- Recognize & Reward Contributions: Employees who feel valued are more likely to remain engaged.
Read our blog, How To Increase Productivity in the Workplace, to learn more strategies for employee engagement.
Addressing Quiet Quitting Before It Leads to Turnover
Quiet quitting is a symptom of bigger issues within an organization– more times than not. Addressing core reasons why employees disengage, whether through better management, clearer communication, or competitive pay, can help prevent it from turning into full-blown resignation.
Gen Z Hiring and Quitting Trends
As Gen Z continues to enter the workforce in large numbers, they are reshaping workplace expectations. Unlike previous generations, Gen Z values flexibility, purpose, and a strong work-life balance over traditional job security. Their values and approach to work are changing hiring and retention strategies for businesses across industries. Additionally, Gen Z is leading the way for a new phenomenon called “revenge quitting”.
What is Revenge Quitting?
Revenge quitting is a growing trend where employees who feel undervalued resign in a way that maximizes disruption to their employer. Rather than providing notice or being straightforward, they quit abruptly– often at the most inconvenient time for the business.
For example, in retail, an employee might walk out during the busy holiday season when stores are overwhelmed with customers. Others might quit at the start of their shift when staffing is already stretched thin.
Like many modern workplace trends, revenge quitting is largely driven by Gen Z. By 2030, Gen Z is expected to make up 30% of the workforce, according to Forbes. While some critics see their approach as entitled, others recognize their willingness to challenge outdated workplace norms.
What Gen Z Wants in a Job
- Flexibility: Remote and hybrid options remain highly desirable, which doesn’t always align with certain industry requirements (manufacturing, manual labor, warehousing, etc.). Furthermore, 65% of Gen Z employees find workplace flexibility in the remote or hybrid model to be the most important when looking for a job.
- Work-Life Balance & Positive Culture: Gen Z particularly prioritizes their mental health and personal well-being more than previous generations.
- Career Growth: Opportunities for advancement and skill development matter more than tenure.
- Diversity & Inclusion: Gen Z leads the way for workplace expectations that actively promote equity and inclusion– in fact, about 75% consider diversity and inclusion when deciding which company to work for.
- Technology Integration: They prefer digital-first work environments with modern tools.
Read our blog, Diversity & Inclusion: The Key to Driving Workplace Success, to learn more about DEI initiatives.
Why Gen Z Employees Quit
- Lack of Purpose: If Gen Z does not see meaning in their work, they are more likely to move on.
- Rigid Work Structures: Traditional 9-to-5 jobs without flexibility may push them away.
- Poor Communication: They value transparency and frequent feedback.
- Slow Career Progression: They expect steady growth opportunities within their jobs, or they may seek them elsewhere.
How Employers Can Adapt to Retention Shifts
- Offer Flexible Work Models: Consider hybrid or remote options to attract and retain Gen Z talent.
- Focus on Purpose-Driven Work: Showcase how roles contribute to a larger goal or operation.
- Implement Continuous Learning: Provide upskilling programs and mentorship opportunities. If you can not provide this internally, there are many resources for online programs or courses and even mentoring programs on platforms like LinkedIn Learning and Coursera.
- Prioritize Mental Health Initiatives: Consider offering wellness benefits, personal health days and encourage a supportive work culture.
- Encourage Open Communication: Foster a workplace that values feedback and collaboration.
Helping Build a Better Workplace
Employee retention isn’t just about offering the highest salary; it’s about fostering a work environment where employees feel valued, supported, and engaged. By understanding and addressing these key challenges— including the unique expectations of Gen Z— you can improve retention, reduce turnover, and build a team that thrives long-term.
If your business is struggling to navigate the challenges of a changing workforce, Staffing Support Specialists can help. Our team connects you with pre-vetted, skilled talent who align with your company’s needs and culture.
Contact us today to learn how we can help you build a more engaged workforce.
