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My Blog


The #1 Reason Someone Leaves Their Company Is....

Posted on April 24, 2014 at 10:22 AM
I firmly believe that any leader should first look at what they have brought to any conflict or situation in the business setting. And after any reader here nods, are you ready for the next comment:
“The number one Reason an Employee leave a company is due to conflict with their Immediate Supervisor”.  
“What? Hogwash!! The employee decided to leave, not me. It was Money. They were never happy. It was their fault.” In some cases, that may be the reason. But at some point, leaders of small to medium sized companies are going to have to “self-evaluate first” and agree or not agree that how employees are being managed is the number one reason why employees leave. So, if this is really true, why do so many small to medium sized company leaders (not for profit or for profit) disregard this information and not train themselves or their frontline leaders?
Because they want to save money to lose money. What??
Many small to medium sized companies who have employees do not want to invest $5K-$10K a year developing the leadership skills of their managers, but unknowingly are content to spend $3K-$5K PER EACH EMPLOYEE who has left the company to onboard a new employee. “That seems high!!” Really?
Check out these sites:
Excerpt: “Turnover costs include productivity losses during training, recruiting and lost work while a position is vacant. For all jobs earning less than $50,000 per year, or more than 40 percent of U.S. jobs, the average cost of replacing an employee amounts to fully 20 percent of the person's annual salary”
Excerpt: “Turnover seems to vary by wage and role of employee. For example, a CAP study found average costs to replace an employee are:
16% of annual salary for high-turnover, low-paying jobs (earning under $30,000 a year). For example,
  • the cost to replace a $10/hour retail employee would be $3,328.
  • 20% of annual salary for mid-range positions (earning $30,000 to $50,000 a year). For example, the cost to replace a $40k manager would be $8,000.”
So, small to medium sized company leaders: Multiply the number of employees who left last year times $5K.
If you still believe my blogs are not inteneded first to be informational, but only self serving or sales oriented, then maybe you will believe these other sources:
Excerpt: “Top talent leave an organization when they’re badly managed and the organization is confusing and uninspiring.”
Excerpt:  “A bad boss is also the number one reason why employees quit their job.”
I am here when you are ready to talk. I have my MA in Clinical Psychology if you need a shoulder to cry on, but also my MBA when you are ready to implement a cost effective Leadership Development program approach to reduce staff turnover.
Someone just thought, “I knew it!! There is the sales pitch”. True, but whether you contact me, some other well known company, or not, the information above still stands true on their own.

Categories: Leadership Development

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