10 Ways 7/8 Figure Business Owners Can Keep Their Best Employees from Quitting

why good employees quit

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Companies that achieve and maintain success know that employees are critical to any milestone they attain. Skilled workers are essential assets to any viable business, driving the capabilities of a company to fulfill its ultimate goals. This is why providing an environment that creates a happy workforce is necessary to attaining goals together.

However, despite the necessary value that employees hold in organizations, more and more good workers end up leaving their companies to find better opportunities. According to the Job Openings and Labor Turnover Survey (JOLTS), the number of workers quitting their jobs surged to a record-high of  4.5 million at the end of 2021. And with 11.5 million job openings in the US, workers now have plenty of options to consider when choosing to leave their current positions.

With this economic trend dubbed “The Great Resignation” looming over organizations, companies need to better understand why good employees quit in order to avoid the pitfalls of employee retention. Retaining quality skilled workers and keeping them happy is much better than having to face the challenges of finding suitable replacements and training them. Knowing the reasons why employees leave is vital to laying a better path to success and developing a strong team that can help push your business to achieve goals. 

10 Top Reasons Why Good Employees Quit and What You Can Do About It
why good employees quit

We’ve never had high turnover rates, which was evident in how our employees feel towards Super Scaling. High flyers are the best assets you can have in your company, so keep them with all your might. But if you feel like your organization is crumbling to pieces, you may be doing these things:

1. Lack of trust and respect

why good employees quit

One of the biggest reasons high performers quit is that they don’t feel the trust and respect in the workplace. Good employees earn their keep, and it can be frustrating when coworkers and bosses don’t value dedicated colleagues. This negativity can cause employees to decide to leave instead of expressing their sentiments. 

This lack of trust and respect can ripple down to affect performance and teamwork, with these behaviors significantly affecting the bottom line. This can boil down to a lack of leadership at work, with management neglecting to address these controllable concerns. Employees deserve to be respected and acknowledged for the good that they do for the company, with this acknowledgment also being a basis of motivation for your trusted workers. 

For example, employees who are micromanaged by supervisors tend to feel that their leaders lack trust in how they work, despite the authority they’ve been given towards their duties. This situation becomes an inadvertent restriction for employees, causing stress that may lead to setbacks and failure. In turn, this lack of encouragement to do great work autonomously may become a reason for employees to consider a more conducive work environment they might thrive in.

What you can do:

To avoid encountering this scenario, you must be able to foster a fun and inspiring workplace that can develop happier employees. As a leader of your organization, you need to build an honest and open relationship with your employees. You need to show them that you appreciate their work and trust in their capabilities by encouraging them regularly. 

Let your employees know that you’re all on the same boat, so allow them to ask questions and work with you in order for them to learn more and be better at what they’re doing. By nurturing their skills and abilities, you can encourage your employees to take on larger responsibilities, highlighting your trust and respect for their contributions to your company. 

In Super Scaling, we allow employees three things that give them fulfillment in their careers: Meaning, Autonomy, and Mastery. We encourage them to find the purpose in what they do, and showcase their competence. This way, they can be on top of everything without any hand-holding management from us.

2. For personal wellbeing and mental health

why good employees quit

When the workplace becomes a negative environment, the toxic culture can wear people out, which affects performance, confidence, and productivity. And when it seems like things aren’t going to change for the better, people start considering their other work options. This is a crucial reason why good employees quit to avoid a negative workplace for their personal well-being and avoid the stressors that affect mental health. 

The recent trend of individuals choosing to leave the workforce in droves has revealed that one in four people have quit a job for their mental health. Many companies still don’t provide enough of a support system to nurture an employee’s mental health, which is why mental health issues are still a difficult topic in the workplace. 

What you can do:

Companies need to provide a positive working environment that nurtures individuals into becoming happier and more engaged employees. As leaders, managers and business owners must be able to identify and eliminate toxic practices that are counter-productive to development. To keep your healthy and happy employees, companies must be able to provide the means to combat stress, prevent workplace burnout, and attain a balance for better mental health. 

As more workplace wellness trends are making waves in companies worldwide, entrepreneurs should see to it that these trends are implemented for employee well-being. I think some of the emerging workplace wellness trends are personalized wellness, financial wellness, and more. I talk about it in this quick video on the “Top 5 Trends To Track In the Future of Workplace Wellness.”

3. Low pay

why good employees quit

Companies providing low wages are one of the prominent reasons why employees leave. According to a survey by Pew Research Center, 63 percent of workers who decided to quit their job in 2021 was because of low pay. Employees consider how a salary is fair compared to industry standards. When they feel like they’re not being paid well enough for the job they do, they start looking for higher-paying opportunities. 

Organizations may think that they gain by paying the legal minimum or even lower, but this manner could end up being more costly for businesses in the long run. It’s more expensive looking for replacements to those who decided to leave, training them, and having them start from the bottom instead of providing fair compensation to keep existing skilled employees happy. A U.C. Berkeley study claims that hiring a new employee costs $4,000 compared to training one, which will incur an average cost of $1,252.

What you can do:

To avoid the pains of having to replace your skilled workforce and end up spending more on the necessary steps to build them up, pay your employees what they deserve. When an employee asks for a raise, consider their performance and how long they’ve been working for you, and you’ll realize if they deserve the raise they’re asking for. Think carefully about how your employees are paid, and provide the means for financial progress within your organization, even without them asking for it, to have them keep working for you for the long term.

4. Poor company culture

why good employees quit

Company culture is a huge contributor to why your best employees quit. Employees desire a sense of purpose and need to connect with your business to keep them engaged. When an individual lacks the connection with a company or doesn’t share the enthusiasm towards achieving a significant milestone for the organization, then the employee has outgrown their sense of inclusion. 

This disassociation stems from poor company culture that fails to keep vital employees interested and engaged. Whether its a lack of transparency, or unclear company foundations, or even a company’s lack of tools for development, these issues can lead an employee to considering quitting their job.

What you can do:

The best way to provide a positive foundation is to develop a healthy company culture with a clear company mission, defined long-term plans, and an uplifting environment of support and encouragement for your employees. Providing a workplace that develops and lifts employees up through cooperation and learning is a far better environment for achieving business goals.

5. Lack of following through

why good employees quit

Empowered employees value productivity and progression, which should be nurtured by management and business leaders. However, when superiors don’t follow through with their commitments, team members and employees become disappointed. This disappointment can quickly build to become resentment for the lack of support employees may feel towards their superiors. 

When teams aren’t supported, the frustration and distrust can snowball negatively to affect overall productivity. This, in turn, can result in a wave of turnover that you wouldn’t wish to encounter. In this scenario, you don’t just lose productivity, you also end up losing your workforce as well.

What you can do:

As business leaders, managers must be able to track commitments given to teams and make sure that nothing is neglected. Putting up a system, such as a to-do list, is a great way to hold up accountability at the office. Although plans constantly change and you may find a different approach, being transparent with your employees is better than ignoring their concerns. Your employees need to feel confident in your commitment towards them, in the same way, that they’re committed to your company.

6. Lack of recognition and reward

why good employees quit

A significant reason why good employees quit is that they may feel underappreciated for their contributions to a company. Many employees feel overworked and dedicate plenty of time and effort to their given tasks. They’re given too many responsibilities, and despite the challenge, they work hard to get everything done. 

In spite of this dedication, many companies tend to overlook their hardworking employees’ efforts and fail to reward them fairly. A major reason why high performers quit is that they mostly feel unappreciated for their contributions, with 79 percent of employees expressing this discontent. Skilled and talented employees tend to become demoralized when their efforts go in vain, killing their enthusiasm for the job and eventually seeking opportunities elsewhere.

What you can do:

Providing incentives and rewards is an excellent tool for encouragement and is a great way to recognize an employee’s achievement. However, simply telling an employee that they are doing a great job can provide more meaningful motivation than your incentives. Also, ensure that employees aren’t overwhelmed when taking on numerous tasks so they can maintain efficiency and productivity and avoid additional stress.

7. Poor leadership

why good employees quit

Employees require the right managers who can help them focus on their tasks and reliable leaders who can guide them in their journey while working for the company. These leaders will serve as influential mentors who inspire and motivate employees to be at their best. Aside from providing transparency, leaders must espouse the company’s values to instil these unto others. 

Leaders who lack the skill, or the capacity to lead, aren’t in the proper position to serve your company. Employees need to have faith in their superiors and be confident to know that their leaders are working hard, if not even harder than they are. When leadership is excellent, the performance of their teams highlights this through clear achievements and the development of a positive culture in the workplace.

What you can do:

The best way to avoid employees leaving your organization due to lousy leadership is by hiring competent leaders with the experience to manage your teams. In addition, you can invest in training to develop and support your management staff. Finally, a strong leadership team can be a reliable driving force that can push your employees to achieve your business goals for overall success.

8. Keeping bad employees

why good employees quit

Curating an effective team can often be challenging, and this is compressed even further when poorly performing employees are kept in the mix. When good employees are placed in teams with bad ones, it can slow progress and raise issues that can stifle team outputs. In turn, this may generate a toxic work environment that can affect your overall operations. 

Despite their poor behaviour and lacklustre performance, bad employees may sometimes go unnoticed by superiors and end up staying on the team. This leads to an adverse reaction from the rest, which lowers the bar for everyone.

What you can do:

When encountering such a scenario, consider doing what you can to turn a bad employee around, such as having one-on-one sessions to allow them to improve on themselves. However, when you realize that their inclusion in your team is a hampering case, you should consider firing them. While it may be more cost-effective to have someone improve their behaviour and performance, putting your faith in a bad apple may lead to losing the good ones instead. 

That said, you must also filter the good ones from the bad ones at the onset of hiring. That’s why we at Super Scaling ensure we hire a team of A-players. If a high performer develops their skills throughout their career, nurture the skills and provide them with the training and support they need.

9. Lack of work-life balance

why good employees quit

One of the most significant reasons why good employees quit is their lack of a decent work-life balance. The opportunities you provide through your company may seem mundane when their lives outside of work are diminished by their responsibilities. A company must respect and recognize that employees have meaningful lives when they clock out and leave the office. 

Expecting an employee to bring their work home with them, cancelling their leaves, or calling them in on their days off, can be off-putting instances where work becomes encroaching on their personal lives. While many choose to dedicate effort and extra time to work, you can’t expect everyone to be the same. This is why 72 percent of individuals applying for a job consider work-life balance as a significant factor.

What you can do:

Every company shouldn’t expect their employees to sacrifice aspects of their personal life for the job. Respecting your employees’ personal time is a must while also ensuring that the workload you give is realistic and doable within the workspace. Developing a work-life balance is crucial to attaining happiness for employees and should be a priority for companies that want their skilled workforce to remain for the long run. 

Entrepreneurs tend to work hard, not smart. But where’s the fun in that? We can be so caught up with many limiting beliefs that working hard is the key to success. However, it only drains us and creates bottlenecks in the company.

10. No opportunities for growth

why good employees quit

An employee’s growth opportunity is essential in understanding why good employees quit. Individuals who have been working at the same company, with the same job, for a long time will start to consider choosing an alternative livelihood option, especially when there’s no opportunity for growth and change. While providing career advancement to everyone may not be feasible in your company, you can initiate other means to encourage their growth. 

What you can do:

Many business organizations recognize the stagnancy of career advancement for many positions, which is why offering fringe benefits is a great resolve. You can offer free training and seminars for employees to gain added skills or education stipends that encourage employees to gain more knowledge. Every employee, especially long-term ones, wants to know that you’re also invested in their future, so value their contribution by working together to promote their overall growth. 

These benefits don’t have to be monetary. Some find work meaning beyond financial gains. This should be something personalized so that every employee feels that their mental, physical, emotional, social, and financial needs are being met.

5 Companies with Attractive Employee Benefits
why good employees quit

To ensure employee retention and keep your workforce happy, focus on developing employee satisfaction within your organization. Businesses that strive for a positive company culture enjoy high levels of productivity and performance from their teams. In addition, many companies provide unique incentives and job perks to boost morale and reduce turnover that you can learn from. Here are five examples of real companies with enticing employee benefits:

why good employees quit

Among the many businesses known for their company culture, Google is a stand-out due to the company’s unique employee benefits and perks. Google has topped numerous lists of being the best place to work in the US, with the innovative tech giant known for its endless creative ways to keep employees engaged. The working environment at Google campuses is fun and fast-paced, providing Googlers with a not-so-typical workplace. 

The office spaces themselves are pretty unconventional, with arcade games and bowling alleys within their beautiful buildings and numerous outdoor workspaces. Google prides itself in its culture of openness, allowing employees to challenge and learn from each other to find inspiration and create things that matter. Here are some notable perks that Google employees enjoy for free while working for the company:

  • Fully equipped gyms and swim-in-place pools
  • On-site medical staff
  • Laundry and dry cleaning facilities
  • Gamerooms with arcades, tables for ping pong, billiards, and foosball
  • On-site haircuts
  • Free breakfast, lunch, and dinner
why good employees quit

Ben & Jerry’s is an ice cream company known for its fun approach and variety of flavors. The company is also known for the progressive benefits package that it offers to its employees. Ben & Jerry’s centers itself on its company values and mission, which drives its business intending to create positive change in the world. They instill these values onto their employees to provide a piece of happiness to every customer they encounter. Some of their perks include taking home pints of super-premium ice cream and frozen yogurt every day! Here are some unique perks that Ben & Jerry’s offers to their employees:

  • Paid family leave
  • Health club memberships
  • Pets in the office
  • Three pints of Ben & Jerry’s super-premium ice cream and frozen yogurt (Every day!)
  • Employees have the chance to join the infamous flavor naming, which will be used for special flavors
why good employees quit

GoDaddy is a known web hosting company with over 9,000 employees worldwide. Aside from domains and hosting, the company is also known as a fun place to work at. Its employee perks provide a focus on fun, health, and developing relationships outside of the workplace with programs that include:

  • Healthy lunch & vending machine options
  • Healthy living coaching programs
  • Health services which include health fairs, biometric screening, and flu shots
  • Tuition reimbursement
  • Adoption assistance
  • Community Service
  • Team building retreats, picnics, and holiday parties
why good employees quit

A company that focuses on advancing the health coaching profession, the Institute for Integrative Nutrition is renowned for its online Health Coach Training Program that promotes health and wellness. IIN employees are developed to become examples of self-development and growth while embracing individuality through learning new ways of doing things. It provides its employees with the following:

  • An office environment and company culture that’s designed to support employees’ mental and emotional well-being
  • Healthy food options
  • Weekly massages 
  • Yoga classes during work hours
why good employees quit

Online retail company Zappos attracts and retains employees with its solid company culture that focuses on providing the best customer service. The company believes that success can only be achieved when employees have fun and are happy at work. Here are some benefits that Zappos provides:

  • On-site wellness service
  • Pet insurance
  • Pre-paid legal services
  • Above-average medical, dental, and vision insurance coverage
  • Monthly team outings
  • Free breakfast, lunch, snacks, and breaks
  • Nap rooms
Conclusion

To understand why good employees quit, you’ll need to gauge how content your employees are. When you focus on providing happiness and fulfillment to your employees, they will reciprocate that with hard work and perseverance. These traits are required to attain high-productivity goals. 

Companies and business owners need to avoid the pitfalls identified in this list to realign their methods when these markers start showing up. When you’re proactive against the things that employees find undesirable, you’ll save yourself from the troubles of occasional turnovers and the costs of training new people. In addition, by keeping your employees happy and fulfilled, you gain the edge of experience and improve your overall performance as you achieve success. 

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