“Why are People Leaving?” is the Wrong Question

Let’s cut to the chase. The short answer to the question of why people are leaving your organization is because they want to, need to, and can.

There are those who leave with no plan for what comes next. These people often feel the need to get away from an arrangement that is toxic or run toward an opportunity that fulfills a burning desire. People who must leave for family reasons also fall into this category.

Others fall into the “want to” category of exploring a new career or seeking a change.

The ultimate factor we must remember, however, is that people leave because they can. A perfect storm of need, desire, and opportunity have accelerated a shortage that researchers have predicted since at least 2004.

The better question

Knowing why people leave after they quit is like finding out why your spouse or partner is unhappy as they walk out the door with suitcase in hand. It might be useful information for the next relationship, but it does not help you save this one.

It is the same for your organization. Chances are that you are already feeling the stress of not enough people. Why wait until enough people leave to achieve an adequate sample size that provides accurate data?

Here is the question you should be working overtime to answer: Why are people looking?

While there are always exceptions, people look before they leave.

Why do people look?

Marcus Buckingham told us that “People leave managers, not companies” in 2016.

Since then, it has become the explanation de jour from the speakers, trainers, and coaches who look to the past to explain the present. Unfortunately, there is enough truth in the statement that it can’t be completely discounted.

Likewise, being a better manager is one thing every leader in the organization can control, and a great manager can make a few of the other reasons why people look more bearable.

The problem with accepting the “people leave bad bosses” mantra as an absolute is that it can mask the other reasons why individuals explore other options. For instance, people also look because of:

• Toxic corporate culture
• Lack of opportunity for growth and advancement
• Instability of the business
• Uncompetitive compensation and benefits
• Work-life balance concerns and the desire for flexibility and better schedules
• Company policies that do not align with individual values
• Desire to try a new profession or career
• Long commute times
• Stress and burnout of the job
• Family needs
• The physical work environment is challenging.

These examples do not mean that the published studies about why people leave are wrong. They provide valuable clues to increase retention. They just are not relevant to your specific situation.

Here are five anecdotal examples my clients have experienced in the last 120 days. In each case a senior leader called to express their confusion because their organization had worked so hard on growing better bosses:

1. An employee took a lateral move away from a company with a stellar reputation and culture to accept a job at the same pay. This happened less than 60 days after receiving a promotion. The reason was the new company was larger and had more opportunities for growth.
2. The President of a technology manufacturing company shared that he was losing people to fast food and landscaping jobs. The salary was basically the same, but the new jobs were paying significant bonuses to move.
3. A middle manager resigned from a job she enjoyed (and had been with less than 2 years) to reduce her commute and increase the time she could spend with her family.
4. A key contributor for a services firm started looking because he found the company’s culture to be toxic. He found a job that would pay him 60 percent more.
5. Hourly employees making a competitive wage for a company with a great culture were routinely leaving because the environment in which they were working was cold and wet. The solution was to buy them better jackets.

The take-away for action

We performed the first client study about why people look at other opportunities in 2004. The prevailing wisdom in those days was that employees would jump ship for even a slight increase in salary. We found that to be true for a small percentage. The vast majority told us that money was not as important as the CEO was led to believe.

Since that time, we have conducted similar studies for other clients. In each case we found that the reasons people explore other opportunities varies based on where they are in their career and life.

With that as context, the most important take-away you can pursue is to ask your team these questions:

• What frustrates you enough about working here that you would look to see what other opportunities are available?
• What would make this job so rewarding that you would consider staying here even if someone called to offer more money?
• If you would consider leaving here for more money, what percentage increase would it take to get your attention?
• What should we be doing more of, less of, or differently to make you feel valued for your contribution?

Segment the responses based on employee age, length of service, and position type (hourly, salaried non-management, supervisor, etc.)

Most important, share the results and your action plan with your team.

Remember: People look at available opportunities before they leave. You will be on your way to increased retention when you ask and answer the better question.

Randy Pennington helps leaders and organizations deliver positive results in a world of uncertainty and change. He is an award-winning author, speaker, and self-described organizational nerd. e. To learn more or to engage Randy for your organization, visit www.penningtongroup.com, email [email protected], or call 972-980-9857 (U.S.).