Why people leave jobs and how you can optimise talent retention

In 2022, an estimated 2.5 million Australians changed jobs. 

This equates to about 19% of the Australian workforce. In the professional sector, turnover is slightly higher at around 22%.

Talent retention is becoming a growing challenge for leaders across the country and around the world. If talent worries are keeping you up at night, you’re not alone. 

Between post-pandemic changes and economic drivers, constant change in the job market is something we can expect as part of the new ‘norm’.

For leaders, it’s an always-on, evolving challenge. The key is understanding why people leave, appreciating that not all turnover is bad, and identifying actionable steps to retain top talent.

Common reasons for leaving

There are many reasons people choose to change jobs. Some drivers occur more frequently than others. 

Seeking flexibility

An incredible 95% of employees want flexible hours, while 78% are seeking location flexibility. In a world where lockdowns gave employees a taste of remote work and professional autonomy, balance remains a key priority. 

Many employees are willing to leave a role if it means improving work-life balance and adopting a wellness-driven approach to work. 

Pursuing growth

Growth matters! In fact, 87% of millennials say career growth is an important consideration in choosing (and staying in) a job. Increasingly, employees are leaving their roles in pursuit of new opportunities that allow for professional development and career progression.

Many people will quit the 9-to-5 so they can launch their own business venture!

Better pay

Money isn’t everything, but with the cost of living on the rise, it’s still an important consideration. Often, employees leave their roles in favour of new opportunities where they can be paid more for the same or similar work. 

Many people also chase competitive benefits packages, including generous paid leave allowances. 

Navigating personal life

Sometimes, the decision to leave a role is personal, and that can mean it’s nothing at all to do with the employer. Changes in family responsibilities and dynamics, health issues, moving house, a new stage of life and many other ‘personal’ factors can come into play when making decisions about work.

As the saying goes, we should work to live, not live to work. Sometimes, leaving a job is a ‘life’ decision.

Chasing a better experience

Studies show that 65% of employees are disengaged at work. People may leave a role that offers a poor employee experience so that they can chase a better environment. 

Many employees are searching for better, more positive workplaces with great engagement and an inclusive, value-driven culture.

Not all turnover is bad

Attracting the right talent to your organisation isn’t easy, which means that you want to retain the best people when you can. As a leader, you might worry about what employee turnover means for your team and your talent strategy.

The good news is that people leaving doesn’t have to be the worst-case scenario. It could actually be the best outcome for all parties involved!

If your employees are unhappy or dissatisfied at work, they could become resentful, and their productivity and work quality could suffer. A negative attitude from one person could bring down the morale for the rest of your team. 

By enabling people who no longer align with your organisation and its mission to move on, you can open yourself up to new talent attraction opportunities that help you find the right people. This is the best possible outcome for your organisation and the team that drives its success.

Even better, if you manage your employee exit process well, your exiting team member could remain a brand ambassador for your organisation. They might even refer business to you or become a client in the future! 

How to retain your talent

Here are some tips on how to drive retention in your team.

Offer personalisation

Employees are consumers of your employer brand, and as consumers, they want to benefit from personalised, authentic interactions. Creating a productive environment for your team is never a one-size-fits-all approach. You need to find out what matters to your people as individuals, then personalise your offer to suit. 

Provide flexibility

Flexibility remains a powerful tool for talent attraction and retention alike! There are many ways you can incorporate flexibility at your workplace. You might offer employees the chance to work a 4-day week. You could allow for hybrid or remote work arrangements. Flexibility could just mean offering your employees the ability to control their own workflow.

Deliver on promises

When you offer someone a job, you are making a promise. As a leader, you need to ensure that you deliver on the promise of a positive employee experience, whatever this entails. Understand what you’re offering your team. Be honest and upfront when you need to make changes. Give your people the respect they deserve. 

Curate your culture

Workplace culture is an important consideration for 46% of job seekers. You need to curate your culture so that you can continue offering a positive environment for your team. Create a space where employees feel supported and valued. Offer people the chance to build relationships and engage in meaningful work.

Talk to your team

Finally, lead with listening! Your people are the experts when it comes to understanding the impact of your leadership and the employee experience your organisation offers. Seek feedback regularly, and take note of dissatisfaction so that you can take steps to resolve issues and keep your best people on board.

Keep learning with Heart

Want to learn more about the talent market and how you can improve talent engagement, retention and attraction at your organisation? Visit the Heart Talent blog for further insights.