The Top 5 Reasons People Leave Their Jobs
The Top 5 Reasons People Leave Their Jobs
Good help is hard to find, never more so than right now. The Australian Bureau of Statistics released data in July this year that shows the unemployment rate has dropped to 3.4%. This is the lowest unemployment rate since 1974. With the unemployment rate at an all-time low businesses are scrambling to find employees in this tight labour market. That’s why employee retention is paramount for many business across Australia.
But holding on to your employees is about to get harder, according to a recent article by News Corp. The great resignation is set to hit Aussie workplaces over the next six to twelve months. An estimated 2 million employees are likely to quit their jobs.
The question for many Australian businesses is no longer just how to find decent candidates but how to keep their current workers.
Seek called on Australians to give their top reasons for leaving a job and the results are in, check out the top five reasons people are handing their resignations.
Mediocre Management
Topping the list for Australians who are ready to resign is poor management. Mediocre management leads to low employee engagement and low productivity.
Bad management comes in so many different shapes and forms, from micromanaging every little detail or leaving an employee with all the work and none of the context, to making impulsive decisions that are constantly changing their KPIs.
How can you fix it
The first step to fixing poor management is having an open dialogue with the employees. You can’t know what you need to fix if you don’t have the inside scope from the staff. Get regular anonymous feedback about management’s performance. This can give you indicators of where improvement is needed.
Keep in mind not every management style works for every employee. Try to foster an environment where your employees can communicate how they will best excel in their roles and what they need from their management team to do that.
It might be regular check in points or meetings to discuss projects or more autonomy to get their work done in peace. Try where possible to accommodate your employees.
No Advancement Opportunities
Coming in at number two on the list was a lack of growth opportunities in their company. Once you hit a ceiling in a workplace, it can be frustrating to stay. What’s the point of putting in the hard yards, when there’s no chance it will result in a promotion? If people feel their role is stagnating, they will want to move on to have the chance to continue growing in their career.
How can you fix it
First, you’ll need to be able to catch it. If someone has been in one position a long time or they are in the early or mid-stages of their career, chances are they will be looking to continue growing.
You can combat the chance that they might jump ship by checking in with employees regularly and making a plan with them for their career progression in the company. Offer them opportunities to study or complete professional development courses and engage them with the kind of work they want to do.
A Fresh Start
The third most common reason for people leaving their jobs was they wanted a fresh a start. Sometimes people are ready for change of career, they want to explore a different industry or just do something different from what they’ve been doing.
How can you fix it
While this can be a bit harder, there are sometimes still options to hang onto a staff member who wants to change careers. If the career change they are looking at is still within the scope of the company, offer them the chance to do with you. If they’re in finance and they want to be in marketing, get them into a course and give them a shot. You never know, you might just be finding yourself a star employee for the department without ever advertising.
A Bad Environment
Poor working conditions or a toxic work environment is a leading factor for many Aussie workers pulling the pin on their job. If there are bad working conditions, safety standards not being met or toxic workplace culture issues, the problem is bigger than one employee.
How can you fix it
To begin with, you should check that your company is meeting all health and safety requirements for your industry, and all fair work standards around pay, penalty rates and breaks. Showing that you care about doing the right thing by employees goes a long way to building employee morale.
If the issue is more around a toxic work culture, you’ll know from the high turnover rate, the low engagement rate and low productivity rate. Start by getting anonymous feedback. Make sure you also get exit interviews and surveys completed. You will need a few employees who are willing to be honest to pin point where the issues are stemming from. It could be to do with personality clashes or unreasonable workloads. Understanding what’s going wrong is half the battle.
I’m worth more
Coming in at number five on the list of reasons people are quitting their jobs is compensation. Unfortunately, it is an employee’s market right now and higher salaries are being offered to try and snag the right candidate.
How can you fix it
To start with you should work a yearly salary review into your strategic plan. A lot can change within a year and often employees will wind up taking on more responsibilities and tasks. Having a yearly salary review gives you a chance to keep up with a fair compensation rate for your employees.
Look into the market average for each of your roles and make sure you’re offering a fair rate. If they can get more somewhere else, they’re unlikely to stay. If upping your offers is not within the budget, consider how you can offer benefits that make it a more attractive package overall. Extra holiday pay, or rostered days off can help you hang onto the best talent in your company.
Final Thoughts
It’s not easy for businesses out there trying to keep their staff with the current worker shortage but utilising these tips can give your company an edge in the market.