4 Hard Truths About Why Your Key Team Members Quit

A while back we talked about the real reasons why you weren’t hiring new employees, and shared the hard truths behind why you might be hesitant to find and hire new talent despite a need for help. Today, I wanted to share a little more hard truth—this time surrounding the reasons why your employees quit. As a business owner, you may have an idea of why you have turnover , but it generally boils down to four main categories.

1. Lack of Recognition

One of the main reasons that employees look for another position has to do with lack of recognition from management. They think, “I have been busting my hump for these people for the last ten years and I haven’t had a raise in three and all they ever do is give praise to Julie and I have done twice as much as Julie…” Really taking the time to celebrate victories with your employees and recognize their hard work goes a long way to keeping them happy in their current position. And it’s important to think outside of the “employee of the month” box and really get to the heart of recognizing hard work and talent on your team.

Hiring Tip: If your job opening has growth opportunities, make sure to list that in the posting. A lot of job seekers are looking for this specifically, and it will help you stand out amongst the crowd.

2. Lack of Growth

Does the position have the opportunity for promotion? Employees that have no promotion opportunities, are already at the top of their pay grade, and have no coaching or mentorship options available are the most likely to leave. Depending on your company, you may not be able to offer a traditional promotion path, but mentoring or coaching your key team members can go a long way to keeping them engaged.

Hiring Tip: Instead of hiring for a project manager right out of the gate, consider hiring for a project manager level 1 or 2, allowing the candidate room to be promoted over time.

3. Lack of Management

We’ve all heard the phrase, “people don’t quit jobs, they quit managers.” This is very true. If employees aren’t getting recognition, training, or advancement opportunities, it’s usually a sign of management issues. Make sure your managers are equipped to lead, support, and grow their teams—it’s key to employee retention.

4. Money

Everyone has economic needs, and it’s important to pay your employees fairly. This should be a given. But when we talk about money and compensation, it really comes down to two questions:

  1. Are you being fair? Are you paying the person what they are worth to the company?
  2. Are you being respectful? Are you paying them what the market values their skill set at?

We can’t all compete to pay the highest wage, but you can ensure that you’re being fair and respectful of your employees’ economic realities.

Hiring Tip: Often, when an employee asks for a raise, they may actually be asking for more independence, autonomy, or growth. While a salary increase is one way to meet that need, other methods like more responsibility, professional development, or recognition can also go a long way.