Why employees quit – and how to get them to stay
August 20, 2024
Recruitment can be expensive in terms of both time and money.
There are time costs in training and productivity of the team impacted by the person leaving, not to mention the impact a resignation has on the rest of the team’s workload if the recruitment process takes a while. There are also the monetary considerations - on average, for a mid-level to senior position, the cost of a resignation can easily reach $50,000 depending on the role.
Therefore, employee retention is critical to the success of any organisation. Let's look at the reasons employees are quitting according to our 2024 Employment and Salary Trends market report.
- Lack of career opportunities: In 2024, 56% of employees resigned due to a lack of career opportunities, in a huge increase since 2022. This is not surprising given that 71% of employees said they value career opportunities over anything else.
- Low pay: 32% of quitters moved jobs to chase a higher salary. This is also not surprising given the ongoing cost of living pressures.
- Lack of benefits: 16% of employees left a job in 2023 due to a lack of employee benefits. Gone are the days when a competitive salary and standard perks were enough to entice top talent. In today's tight employment market, employers are going the extra mile by offering enticing and surprising workplace benefits to prospective employees.
- Management and non-supportive culture: In the last 12months, 15% of employees who quit left due to management issues and feeling unsupported.
- Stressful working conditions: 15% of quitters left due to increased stress. In many cases this is due to inadequate staffing levels – if this is an issue in your business, reach out to the Edge Recruitment team.
- Failure to address work-life balance:The report shows that 68% of employees value work-life balance, 4% more than in 2023, so it comes as no surprise that 14% of resignations in 2023 were a result of poor work/life balance.
- Lack of flexibility: 13% of quitters left due to their employer not offering enough flexibility. Don’t confuse this with the point above – work/life balance and flexibility aren’t the same things. Flexible working is one of the ways to create a better balance between our work and our lives outside of work.
Now let’s look at the main reasons people chose to stay in their current role in 2023, and what can you do as an employer to reduce resignation levels and retain your talent.
- Increased pay: 59% of employees stayed in their jobs due to an increase in base or variable pay. 22% of current job seekers say their salary isn’t in line with market levels. Our 2024 Employment and Salary Trends report includes detailed medium salary guides by industry and city, so request a copy of the report to make sure your salaries are on par with expectation.
- Additional training and development: 51% stayed in their job because of additional training and development. Continuous learning is not just crucial for career growth, it’s essential for setting up your business up to survive – and thrive – in turbulent times. When times are tough economically for businesses, staff training is one of the first areas to be targeted. However, the opposite is necessary, so get creative and find ways to maximise and stretch your training budget.
- Stronger retention efforts on critical roles: 45% stayed due to stronger retention strategies. According to the report, employees are 4x more likely to stay for at least two years in a company if their manager provides clear work priorities. In fact, 90% of employees are more satisfied and engaged if their manager uses employee feedback to drive change within their team. Consider the level and quality of feedback you give as a manager - 31% of employees said their managers haven’t given them enough guidance during one-on-ones, even though it would improve their performance and productivity.
- Offering alternative work arrangements: This kept 38% of people in their jobs. Employers that are resistant to including flexibility in their workplace are missing out on a huge pool of talent that deem their job opportunities unsuitable and may even risk losing existing team members to competitors that do. Read some of the ways
employers can set up flexible work arrangements in their workplace.
- Increase in lateral promotions: 26% stayed in their roles due to promotion opportunities. 77% of employees would stay longer in their job if it was easier to change jobs internally and would rather make a lateral move if it offers better learning opportunities, so ensure an annual review of what promotional opportunities are being made available in your organisation.
- Review of employer value proposition: If it is a surprise to you that this kept 10% of employees in their roles last year, it might be time to review your EVP and ensure it is well-defined, attractive and geared towards your employees. This can give your people a reason to want to continue to work at your company, as well as helping to attract good new talent if you need it.
Employee retention is not just crucial because it can save money - it can also foster better relationships, lead to better employee performance, generate more revenue, and make your company a more enjoyable place to work overall (which in turn will attract good new talent faster if you need it). So make sure you consistently offer an environment that keeps your employees happy and engaged.
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For many job seekers, having a job application rejected is just part of the process of job hunting. However, it may be your resume that is unknowingly turning off recruiters and employers. As a recruiter, your resume is our first impression of you, so your success in the job market relies heavily on getting this important document right. A well-structured and succinct CV should not only demonstrate your skills and experience clearly and succinctly, but also acts as a marketing tool, promoting your personal brand to prospective employers. Here are the most common resume mistakes we have seen by job seekers – so you can avoid making them too! Applying for roles you are not experienced or qualified for This is our number one reason for dismissing a job application. If this occurs, you have clearly not read the job description thoroughly. For example. your application will be turned away if you are a real estate receptionist with two years’ experience applying for a senior property management role requiring five plus years’ experience. Inconsistent or vague dates You may be surprised how often we see vague, missing or inconsistent dates of employment on resumes, which can look like you are trying to hide something. For example, ‘2012-2014’ could mean you have been in that role for as little as 12.5 months or a maximum of three years – a large disparity. So, when listing your previous jobs – especially if you have been in a role for less than 5 years – provide the year and the month for both start and completion dates. Missing dates Not explaining any absences or gaps in your employment timeline only leaves it up to the recruiter or employers’ imagination. Make sure you address gaps such as travel, study, parental leave, redundancy, surgery, or temp/freelance work, also providing the year and the month for the start and end of these periods. Misleading information Recruiters use several methods to authenticate the information given on resumes. So, providing false or misleading information will be detrimental to your chances of getting the job. For example, if your resume does not match the information provided on your LinkedIn profile, this is an immediate red flag for recruiters. Spelling & grammar errors It is amazing how many resumes we receive with typos and grammar mistakes in them. One typo could be forgiven if the rest of your application is great but resumes containing multiple spelling errors and poor grammar will be rejected. We recommend you read and re-read your resume and get a friend to check it and provide some feedback. Submitting a resume with errors is a waste of both your time and the recruiters, so do not rush it! Stretching the truth Alarm bells ring when we see candidates stretching the truth on their resume. It causes us to consider what other key details may have been embellished or left out. For example, when a candidate indicates they have three years of experience in property management on their resume and we find out in an interview that it is more like 18 months. So keep it truthful! Extra-long resumes Recruiters and employees see a lot of CVs, so resumes that are 10 pages long simply may not get read word for word and may reduce the effectiveness of your application. We estimate that only 50% of the resumes that we see hit the mark and concisely convey the information needed to progress in the application process. A concise resume of two to three pages is the ideal length, which clearly outlines your education, job history, skills and contact details in an easy-to-read format. No achievements, just skills Many people only list day-to-day duties they did in previous jobs, rather than describing their achievements in those roles. As much as you can, showcase the impact you had in previous roles rather than just tasks undertaken, with results/outcomes quantified with numbers, percentages, or specific outcomes. For example, instead of saying “managed a team,” say “managed a team of 10, increasing productivity by 20% within six months.” Too many buzzwords We see many ten-dollar words used when a five-dollar word will work perfectly. Write your resume in clear, understandable language. For example, don't feel the need to say "utilise" instead of "use" or load up your resume with buzzwords like "proactive" and "synergy" unless they're the only words that will express your thought. Recruiters and hiring managers need to skim your resume in a few seconds to find out what you do, not spend hours reading it like it was a detective novel, trying to piece together the clues. Remember - keep your resume brief, simple and easy to understand, and impress with your achievements, not with your fancy language. This is how you'll get the interview, and then your dream job.
These insider tips from Edge Recruitment’s experienced recruiters are worth their weight in gold to help you nail the job search process! Recruiters/employers may look at your social media profile Both recruiters and employers can view publicly accessible information to help decide if a candidate would make a good cultural fit for their organisation. Have you considered how your past online activity could be viewed by potential employers? Do you know what images, posts and comments are publicly available? Have you Googled yourself recently? Make sure the content and photos on your Facebook, LinkedIn or Instagram profiles are appropriate for future employers. Interview no-shows can affect your chances of getting future jobs Ghosting or having a poor excuse for not showing up to your interview with your recruiter can crush your chances of winning future roles. Whilst legitimate excuses are fine, not attending your interview – especially after you have confirmed your attendance - demonstrates a lack of reliability and indicates that you may not be relied upon to show up for future interviews, let alone be at work on time. We recommend thinking twice before not attending an interview without letting your recruiter know in advance. Not all jobs are advertised Up to 80% of our jobs at Edge Recruitment are filled via networking and database searches, even before we have ever advertised it. Therefore, it really pays to register with us as soon as you are ready to start your job hunt. If you are registered with us and we have a job that suits your skills and experience, you may get a call from our consultants without even applying for the role. Your resume IS make or break Certain elements on a resume can detract from your professional image or lower your chances of even being considered by a recruiter or hiring manager, so make sure you get it right from the outset. Firstly, carefully read a job description and ensure you meet the core requirements to prevent applying for jobs that you are unqualified for. Next, do some research to learn about the company’s values, culture, and mission to determine if it is a good fit for you. Next, customise your resume and cover letter for that job to highlight relevant skills and experiences that align with the job description. Lucky for you, Edge has you well covered in the resume department. Read these 10 resume hacks and avoid these 15 things , and you can’t go wrong. A job interview may be just around the corner Be prepared that you may need to attend an interview sooner than you think. Recruitment periods vary wildly from employer to employer, so smarten your wardrobe if it is needed and get a haircut if it’s looking neglected. Whilst most job searches take a while, sometimes job offers can result from the very first interview. Read Edge Recruitment’s comprehensive interview guide to ace every step of the interview process. Be prepared to answer questions about salary Whilst it is unlikely you will be asked about salary in a first interview with an employer, a first meet or phone call with a recruiter will include a discussion about salary expectations. So, it pays to be prepared. We highly recommend that you do some salary research and consider what your expectations are before applying for jobs. For more advice and support for your job search, reach out to the experienced Edge Recruitment team today who are ready to help you land your dream job.
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