Employees resigning is a reality that every HR team faces, but when it becomes a trend it can indicate underlying problems for your organization. There are many valid reasons for leaving a job — both personal and professional — and turnover isn’t always a reflection of your ability to create a positive work environment.
A high attrition rate, however, can impact your company’s bottom line, morale, and overall culture. Plus, it could indicate issues with the employee experience that HR teams can address.
If you want to keep turnover low and create the type of work environment that employees don’t want to leave, you need to ask two questions: Why do people quit their jobs, and what can you do to make them want to stay?
10 top reasons for leaving a job
There’s rarely one reason for employees leaving a company. Once you start researching, you’ll find a combination of factors driving resignations. Understanding these factors can help your organization create a more supportive and engaging work environment — a company where workers are comfortable staying.
Here’s a breakdown of common reasons for employees quitting their jobs, in no particular order.
1. Lack of growth and development opportunities
Employees value clear paths for professional growth within their organization. If they feel stagnant or unable to develop new skills and advance their careers, they’re more likely to seek opportunities elsewhere.
2. Uncompetitive compensation
Compensation plays a significant role in employee retention. If an employee feels their pay doesn't reflect their skills and experience, or if their salary falls below industry standards, they’re more likely to take a new job offering higher pay.
3. Burnout and poor work-life balance
A healthy work-life balance is essential for retaining employees. If your employees consistently feel pressured to work long hours, don’t get adequate time off, or find it hard to balance their workload with their personal lives, they’ll experience burnout and start looking around for opportunities that offer better work-life balance and less stress
4. Feeling undervalued or unrecognized
Your people want to feel appreciated for the work they do. If their contributions go unnoticed or they feel undervalued by their managers and colleagues, they might become disengaged and consider other opportunities where they feel more valued.
5. Inadequate benefits
Salary matters, but so do benefits that meet employees’ needs and overall well-being. While standard offerings like comprehensive health insurance and retirement plans are important, today’s workers want more.
Financial wellness programs, flexible work arrangements, and parental leave policies are just a few examples of top benefits employees want. Providing perks that promote a good work-life balance and help employees feel cared for in every aspect of their lives encourage them to stick around.
6. Poor management and leadership
A bad boss or a lack of leadership will have a major impact on employee morale and job satisfaction. If your workers feel micromanaged, unsupported, or unable to trust in their leaders, they’ll eventually look for a workplace that feels more positive and empowering.
7. Limited flexibility
Rigid work schedules and a lack of flexibility are problems for many workers, especially those with families or other commitments outside of work. If employees lack flexibility, or if they’re forced to commute to the office when their duties could be performed remotely, they’ll seek opportunities that offer a more adaptable work arrangement.
8. Unclear company vision or values
Most employees want to feel like they're part of something meaningful — that their work contributes to a greater purpose. If your company's vision or values are unclear — or worse, they feel your values don't align with their own — they may be prompted to leave.
9. Lack of communication and transparency
Healthy work environments are built on open, honest communication. If your workers feel they’re not being kept in the loop, that their managers aren’t transparent, or that the company doesn’t factor employee feedback into important decisions, they may feel undervalued and distrustful of your organization.
10. Toxic work environment
Many of the factors we’ve outlined so far contribute to a less-than-perfect work environment. When you add bullying, harassment, discrimination, or disrespect to the mix, the environment can quickly become toxic — creating conditions that heighten employee turnover.
How to prevent turnover and retain talent
While you can’t address every individual’s personal or professional reasons for leaving a job, knowing why employees quit can help you reduce employee turnover. Let’s explore some actionable steps you can take to address the issues above and prevent employees from seeking opportunities elsewhere.
Invest in professional development
Creating clear career paths and providing professional development opportunities will help reduce stagnation and show workers you’re invested in their future. At minimum, your managers should encourage employees to take on new challenges and provide the support they need to develop new skills. If you want to go a step further, look into offering training programs, mentorship connections, tuition reimbursement, and opportunities for workers to attend industry conferences and workshops.
Offer financial wellness support
Employees are increasingly leaving for roles that offer better benefits, and financial wellness is quickly becoming a top priority. Financial stress is the
top cause of stress for 57% of employees. Offering financial wellness programs can set your company apart and show that you care about their overall well-being.
Partnering with a company like EarnIn is an easy, cost-free way for employers to enhance their benefits package and support employee financial wellness. EarnIn provides workers with access to valuable tools like
earned wage access (EWA),
credit monitoring, and
an FDIC-insured savings account, all designed to help them build healthier financial habits. With EWA, employees can access up to $150 per day, with a max of $750 between paydays
and get their pay the same day they work—starting at just $2.99 per transfer.
By offering the financial benefits employees want and need, you’ll not only support their long-term financial journey but also help strengthen retention, engagement, and overall satisfaction across your workforce.
Implement flexible work options
If your competitors offer hybrid or remote work arrangements, attracting and retaining top talent may require that you do the same. Help employees better manage their work-life balance by offering things like flexible work schedules, compressed workweeks, generous paid time off policies, and the option to work remotely. Providing this level of flexibility demonstrates your trust in employees to manage their own time and productivity.
Create a culture of recognition
Feeling undervalued is one of the biggest reasons employees leave. To foster a more positive and appreciative work environment, create a culture of recognition where workers feel appreciated for their contributions through initiatives like employee-of-the-month programs, advancement opportunities, and company-wide celebrations of team accomplishments. Encourage peer-to-peer recognition, and be sure you’re providing managers with the training and resources they need to offer regular positive feedback.
Conduct exit interviews and surveys
While you should always aim to keep employee turnover low, very few of today’s workers will keep one job for their entire career. When people do leave, make sure to conduct exit interviews so you can gather feedback on what your organization could improve. You should also conduct regular employee surveys to gauge satisfaction, identify potential issues, and gain insights into what your workforce values most.
What employer practices create a positive company culture?
A positive work culture starts with open communication and a strong sense of community, which you can achieve with a few key practices:
Encourage transparency between management and employees, providing channels for feedback and fostering a sense of belonging through team-building activities.
Prioritize work-life balance by encouraging breaks, vacation time, and flexible work arrangements to prevent burnout.
Recognize and reward employees with praise, bonuses, and opportunities for growth.
Offer training, mentorship, and clear career paths to support development and advancement.
Cultivate an inclusive environment that makes everyone feel respected and valued.
Support employee well-being with access to wellness programs and mental health resources.
The most important practice of all is to lead by example: Your managers should model the desired behavior, demonstrating respect, integrity, and a commitment to a positive workplace. These practices create a supportive culture that attracts and retains top talent, fosters engagement, and drives success.
How EarnIn supports employee retention
One of the biggest challenges in retaining employees is addressing the financial stress many of them face. When workers feel financially secure, they’re more engaged, productive, and likely to stay with their employers. That’s where EarnIn comes in.
With EarnIn, employers can offer meaningful financial support that meets employees where they are. On-demand pay gives workers access to up to $150 per day, with a maximum of $750 between paydays, helping them cover everyday expenses or unplanned bills. Employees can access their earnings the same day they work—starting at just $2.99 per transfer—giving them more flexibility and peace of mind. Tools like Credit Monitoring helps employees stay informed about their credit health, while Tip Yourself encourages better saving habits. And because EarnIn is no cost for employers and requires no integration, it’s an easy, high-impact way to enhance your benefits and support employee well-being.
Request a demo today to see how EarnIn can help you reduce turnover and increase retention.
Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services
EarnIn is a financial technology company not a bank. Banking Services are provided by Evolve Bank & Trust, Member FDIC. The FDIC provides deposit insurance to protect your money in the event of a bank failure. More details about deposit insurance
here.
Your VantageScore 3.0 from Experian® indicates your credit risk level and is not used by all lenders, so don't be surprised if your lender uses a score that's different from your VantageScore 3.0.
Learn more.
Tip Yourself Account funds and Tip Jars are held with Evolve Bank & Trust, member FDIC and FDIC insured up to $250,000. Tip Yourself is a 0% Annual Percentage Yield and $0 monthly fee service deposit account. For more information/details visit
Evolve Bank & Trust Customer Account Terms. The FDIC provides deposit insurance to protect your money in the event of a bank failure. More details about deposit insurance
here.
A pay period is the time between your paychecks, such as weekly, biweekly, or monthly. EarnIn determines your daily and pay period limits (“Daily Max” and “Pay Period Max”) based on your income and financial risk factors as outlined in the
Cash Out Maxes section of our
Cash Out User Agreement. EarnIn reserves the right to adjust the Daily Max and Pay Period Max at its discretion. Your actual Daily Max will be displayed in your EarnIn account before each Cash Out.
EarnIn does not charge interest on Cash Outs or mandatory fees for standard transfers, which usually take 1–2 business days. For faster transfers, you can choose the Lightning Speed option and pay a fee to receive funds within 30 minutes. Lightning Speed is not available in all states. Restrictions and terms apply; see the
Lightning Speed Fee Table and
Cash Out User Agreement for details and eligibility requirements. Tips are optional and do not affect the quality or availability of services.
Lightning Speed is an optional service that allows you to expedite the transfer of funds for a fee. Depending on the product, the fee may be charged by EarnIn or its banking partner. Lightning Speed is not available in all states. Restrictions and terms apply. See the
Lightning Speed Fee Table for details.
