A total of 3.1 million Americans quit their jobs in December 2015, the highest number since December 2006. That pushed the quits rate, which the Fed looks at as a measure of confidence in the jobs market, to 2.1%—the highest level since April 2008.
Why are so many willing to quit their jobs?
It is worth your time to find out as some studies predict that every time a business replaces a salaried employee, it costs 6 to 9 months’ salary on average.
A Gallup poll of more than 1 million employed U.S. workers found that the top reason employees quit their jobs is because of a bad boss or immediate supervisor. To have a toxic relationship with the person an employee reports to undermines the employee’s engagement, confidence and commitment, explains Susan Healthfield, an HR expert.
Once employees are bored with their jobs then trouble begins. A survey by Alpin finds that 50% of employees say once they start thinking about leaving, they put in less effort.Gallup estimates that actively disengaged employees cost the U.S. $450 billion to $550 billion in lost productivity per year.
When employees use their skills and abilities on the job they feel a sense pride, accomplishment, and self-confidence. If an employee can’t see a path to continued growth in their current organization, they are likely to look elsewhere for a career development or promotion opportunity.
Workers who believe they are free to make choices in the workplace — and be accountable for their decisions — are happier and more productive.
This aspect of job satisfaction is especially important to Millenials. A study by the iOpener Institute found this group's belief in the firm’s economic or social purpose, and pride in the organization and its work, had a strong correlation with job retention.
Financial instability -- a lack of sales, layoffs, salary freezes-- all lead to an employee’s lack of trust, saysHealthfield. However if they they respect the company's judgment, direction, and decision making, they will stay, she says.
The Aon Hewitt survey found recognition was the fourth-most important driver of engagement globally in 2012, behind issues such as career opportunities and pay. And it’s particularly important for millennials, ranking third globally.
Does your organization appreciate employees, treat them with respect, and provide compensation, benefits, and perks that demonstrate respect and caring? Your overall culture keeps employees – or turns them away.