People Quit People, Not Jobs
July 8, 2005 – 18:19 pmA recent Gallup poll cites the three most common reasons why employees leave their jobs as follows:
1. Lack of faith in the leadership or vision of the company
2. Concern with the way management is treating people
3. Lack of management support in areas such as performance reviews and employee development
The single most important factor that impacts employee performance and commitment to staying with an organization is the relationship that an employee enjoys with his or her immediate manager. Employees leave their manager far more often than they leave the organization.
It is just good business to make employee retention a priority and part of your company’s overall strategic objectives. The cost of replacing an employee is estimated to be between 1.75 and 2.5 times his or her yearly salary.2
When people leave, they take their contacts with them which impacts the effectiveness of the organization. In addition to the normal costs associated with training and orienting new employees, when a top-performing employee leaves it can cause those left behind to question their own loyalty.
In a research report published in September 2003, Rainmaker Thinking, Inc., cited the importance of the supervisor in the workplace. According to Rainmaker Thinking, “The day-to-day communication between supervisor managers and direct reports has more impact than any other single factor on employee productivity, quality, morale, and retention.”
In a very comprehensive study of retention, researchers at the Family and Work Institute found that earnings and benefits have a 2% impact on job satisfaction, while job quality and workplace support have a combined 70% impact.