Workers Parting Ways: 5 Hidden Causes of High Employee Turnover

Poor management, limited benefits, and inadequate compensation. These are the most popular reasons workers vacate their positions. 

They contribute to high employee turnover, meaning the rate at which people leave (for any reason) and are replaced by new hires. While high turnover can be the norm in some industries, it’s expensive, which is why employee retention strategies pay off. It also damages a company’s reputation, productivity, and morale.

It’s the company's job to figure out why its rates sit where they do. Exit interviews don’t always tell the whole story. Whether an employee claims they found better pay elsewhere or was let go after a particularly unproductive period of quiet quitting, something else is usually lurking beneath the surface.

🚩 5 specific reasons for a high employee turnover rate

Few people would describe their jobs as perfect, even if they really adore their work and the company they’re with. Many would love more pay, better benefits, or stronger relationships with management. That doesn’t mean they’re thinking of leaving.

The following five factors push people past the tipping point and out the door, leaving an empty seat for their replacement.

1. Zero development opportunities

The term “dead-end job” has been in wide use for over a century. Companies that offer no career development or growth opportunities usually blame budgets or fear workers will take their new skills elsewhere. 

Cost-friendly strategies like lateral moves, stretch projects, and mentorship can do the opposite. They’re an investment in the employee that makes them feel valued. Is the company fearing they’ll leave once they gain new skills? They first need to face the fact that employees are already leaving because they’re not being given any.

2. Inflexibility

Priorities are shifting, and workers frequently cite work-life balance as a primary goal. Flexible work arrangements haven't been shown to reduce productivity. However, they do reduce burnout and enhance morale. That’s why denying flexibility can feel hostile.

Employees are typically aware when they’re in professions that don’t lend themselves to flexibility. If they know hybrid, remote work, or flexible scheduling is possible but aren't sure why they can’t have it, it sends a message. Their employer doesn’t respect their needs, priorities, and preferences. 

3. Poor training or insufficient resources

People don’t want to “get away with” being bad at their jobs. Everyone wants to feel confident and prepared to meet the requirements of their role. When they don’t, it can feel like they don’t belong and are struggling with purpose, major red flags for employee engagement. 

Sometimes, it’s just not a good fit. But many others feel they didn’t get the full benefit of training, whether the material was rushed or incomplete. They may also know they lack the resources to do their work as efficiently as possible. If the reason for that is unclear, it can feel like sabotage.

4. Workplace toxicity

When does low morale become straight-up toxic? As the focus on a supportive company culture grows, the following traits stick out like a sore thumb, sending employees packing:

• Poor communication with frequent misunderstandings
• Feeling disrespected and excluded
• Unrelenting stress levels with increasing workloads
• Tense office politics with incessant gossip
• Lack of transparency with favoritism

5. Lack of recognition and appreciation

In many instances, the previous four causes add up to this one. More than half of surveyed employees cite lack of recognition as a reason they quit.

Recognition for your efforts at work is highly motivating and boosts performance. It gives people the confidence to find creative solutions on their own or go above and beyond. Plus, it creates a sense of belonging, strengthens collaboration, and gives people hope for their careers.

The benefits are almost endless. So why do so many people struggle to get a simple thank you? Lack of management support, poorly constructed (or nonexistent) programs, and inauthentic, “forced” recognition make it ineffective.

🤝 How to reduce employee turnover

Now that we know what many employees aren’t saying out loud, here’s how to fix it. 

Creating a better recognition program for employees

An employee recognition program should have structure, multiple recognition methods, and leadership buy-in. 

More importantly, everyone should know what genuine recognition looks like and why it's so effective. When we laud someone’s behavior or performance, it should be specific, timely, and tailored to their preferences. We also shouldn’t neglect milestones like work anniversaries–letting people know we’re grateful to have them.

Read more about what it takes to start a successful recognition program.

Bust up toxicity with peer recognition

One of the best ways to use recognition to improve retention (and reduce turnover) is to include more than one type. Peer-to-peer recognition brings coworkers together by increasing their positive interactions. 

Detoxing the environment works wonders for everyday morale. Over time, employees grow accustomed to calling out their colleagues’ strengths and good deeds. They’re increasing their exposure to exceptional team qualities like trust and respect.

Start rewarding workers meaningfully

Employee gifts are great! But many workers would rather be rewarded with what they feel they’re lacking, like flexibility and career development. 

In some scenarios, offering these non-monetary rewards can be even more meaningful as a trade for an awesome attitude, persistence in problem-solving, or great performance. The employee knows they’re worthy and they’ve earned it. To cap it all off, they’re at a place that recognizes that.

Start incorporating even more meaningful rewards for teams and individuals.

🌮 Peer recognition, milestone celebrations, and meaningful rewards in one fun, lightweight tool

If you’ve read all this and are interested in a solution that’ll put you on the fast track to reduced employee turnover, consider HeyTaco! We’re the #1, award-winning peer recognition app for a whole bunch of reasons, including:

• Gamification that makes recognition fun (and a little competitive, in a good way)
• Integration with Slack, Google, and Microsoft that works like a charm
• Helpful analytics that let you measure your progress
• Tailored rewards that strike just the right chord in employees’ hearts

And so much more! Let us prove it to you with a free month.

Employee turnover FAQ

How to calculate employee turnover?

Glad you asked–try HeyTaco’s turnover calculator. It’s free to use.

What is the average employee turnover rate?

The average employee turnover rate in the United States is around 18-20%. This varies by industry, where high turnover is more common. Industries not typically at risk of high turnover should aim for around 10%, though 15% is still pretty good.

What job has the highest turnover rate?

Food service jobs and many other hospitality roles have some of the highest turnover rates. Childcare, retail, and customer service/tech support also have elevated turnover rates.