Why employees leave even if they are paid more to stay.

Studies and experience have always shown that money will never be the most important factor for job satisfaction.

There is no doubt that finding the right talent for a company can be a tricky task, but retaining them can be even more difficult. I have been a consultant to some of Dubai's (and the world's) biggest companies and spent a lot of time on Business Transformation focusing on Employee Engagement among other areas. I have learned that while companies stress a lot on maintaining an impressive customer retention rate, they seldom focus on maintaining an excellent employee retention rate, regardless of what they may state externally. No wonder there seems to be an exodus of talent at their doorstep every time a better opportunity comes up.

I have talked to, trained and mentored many professionals during my years as a boss and later as a coach. All this time, it has become evident to me that “money” is never the only factor that makes people leave their jobs. While many do depart because of being paid less, the majority leave their well-paying job for other reasons and the following are some of the top ones.

1.   Lack of Purpose

It has been said and written ad nauseam before, but it is not a cliché. It is true! Lack of PURPOSE is one of the reasons good talent depart. Purpose drives a person to perform his/her duties with equal enthusiasm every single day. But, everyone has a different purpose. For some it may be the money in order to provide a better life for the family, for others it may be the gathering of knowledge and experience, some, like me, like to contribute to something bigger than myself.

Wendy Ulrich, a psychologist, educator and co-author of the book "The Why of Work: How Great Leaders Build Abundant Organizations That Win," stated, "People find meaning when they see a clear connection between what they highly value and what they spend time doing."

2.   No Meaningful Work

Employees usually enjoy the work they’re assigned, and their expertise on the subject matter makes the job all the more enjoyable. But when they are made to work on projects that doesn’t suit their interest or skill set, challenges may arise. For example, if you frequently make a finance professional work on mundane admin tasks for no justifiable reason, the person may start feeling bored, unimportant or unfulfilled. This often leads to low self-esteem. Travis Furlow, an executive leader at a global corporation and the founder of Paperclip Thinking, said it well, "One of the easiest ways to lose people is to misalign them with their daily duties."

A key to retaining good employees is to always keep them occupied with work that gives them a sense of accomplishment when completed. It makes them feel valued, and they take pride in their work. This I found was most important for me. I always feel accomplished when my work was done and done well. When work is meaningful, employees put their best into it, and the results tend to be top-notch.  

3.  Lack of Recognition or Encouragement

Everyone wants to be appreciated. It's within our DNA to always look for validation. If good work is not acknowledged and praised regularly, employees will feel unappreciated, unaccepted, and discouraged.

A study by Achievers, an industry-leading provider of employee recognition and engagement solutions found that out of the people who were planning to leave their jobs, "44% cited a lack of recognition and engagement at their current employer."

As we spend a major portion of our lives working, it is very essential that this effort be recognized by the line managers and the company.

4.  No Sense of Belonging

While an ideal workplace is composed of helpful colleagues, healthy competition, frequent review and reward setting, a pleasant work environment, etc., this scenario may be far from reality in many organizations. When the employee is at the receiving end of workplace politics, gossip, and interpersonal conflicts, he or she may feel victimized, bullied, and unable to cope with work.

In his seminal 1974 book "The psychological sense of community: Prospects for a community psychology", psychologist Seymour B. Sarason proposed that psychological sense of community "is one of the major bases for self-definition." One of the pillars of human happiness is belonging to a community.

When an employee faces unruly behavior or is constantly targeted for petty workplace politics, you can rest assured that he or she will eventually leave the organization. Therefore, a healthy work environment with guidelines that promote harmony and ethical practices is critical.

5. Poor Line Management

It's well documented by many studies that employees leave their managers and not their companies. Research done by Hogan Assessments showed that 75% of employees considered their direct boss to be “the worst part of their job.” And in 2015, Gallup did a comprehensive study on “The State of the American Manager,” to find that 50% of Americans left their jobs to simply “get away from their manager at some point in their career.”

On the other hand, if one had a great relationship with his or her boss, it becomes very difficult to leave despite all the drawbacks. I am a great example myself. I have had the same boss for 14 years, and I found it very hard to leave because he treated me so well. In fact I still meet him regularly for lunch and coffee despite me leaving the company a long time ago. Positive workplace relationships with one's line manager matter a lot.

Can all this be changed?

Yes, of course! When talented employees leave, it not only affects those who stay in the form of increased workload, but it also affects the organization in terms of increased hiring and training costs, not to mention the loss of history and intellect. No matter how much money is being offered to deserving employees, they will always find it difficult to work if they are not supported at emotional levels or not satisfied with working conditions.

Positive 'Employee Engagement' is therefore critical to businesses’ sustainability regardless of the industry and line of work. The more the company looks after the employees’ happiness, the less they will need to worry about them leaving.

Do you agree or not? There are many other factors, and I look forward to ideas, comments, and suggestions from you, so please do comment below. ??

About the Author

Jeevan is an author, lecturer and success coach who has spoken and taught in over 14 countries in North America, South America, Europe, Africa, Asia and the Middle East. He sits on several organization boards and is the author and co-author of three internationally published books. His areas of focus are Business Transformation, Leadership, Employee Engagement, Customer Happiness and Community Management.