Why Are Employees Leaving? Let's Discuss the Real Reasons Behind Attrition

Dear HR Fraternity,

Even though we have discussed the attrition rate earlier, let us consolidate the reasons so that it will be useful for the new members and students involved in the studies. I am listing the following reasons from my side:

1. Less payment/wages, which may prompt workers to leave the company in search of better opportunities offering higher wages.
2. Family reasons.
3. Health reasons (e.g., due to occupational hazards like chemical exposure, dust, and gaseous impacts).
4. Lack of knowledge (inability to comprehend the benefits of long-term service for future developments).

Let our knowledgeable members continue this discussion, making it beneficial for all our members.

Regards

"So much of what we call management consists in making it difficult for people to work." ~ Peter Drucker

I don't know whether I am right or not, but management is also responsible for attrition.

In some companies that are not following the rules and regulations, they are facing a high attrition rate, and the workforce turnover will be higher. You can explain it as "The welfare of the employees needs to be taken care of." Otherwise, the company cannot control the outflow of the workforce. Hope you are intending to convey the same. If you have a different view, please do not hesitate to share your perspective.

Non-Monetary Welfare Activities

Even though companies focus on the financial satisfaction of employees, there is another aspect that needs attention. That is non-monetary welfare activities, which can help reduce the attrition rate.

Regards,

Thank you for inviting me to contribute to this thread. If I recall correctly, I have commented on this topic before. Please allow me to share some anecdotal information before providing the latest links.

A significant number of us left our secure governmental jobs in India in the 1960s and emigrated to the UK. The main reasons were boredom at work and a desire to improve our qualifications (the facility for higher education was not as advanced as it is now in India). Some left the UK and went to the USA (the grass was greener on the other side).

Even within the UK, some stayed in one company/organization until they retired. Others gained Postgraduate Management Diplomas/Master's and PhD degrees and transitioned from engineering to other areas. Some even left the industry and joined educational establishments. The reasons varied: not liking the job, family commitments (to spend more time with children), flexible working hours, dissatisfaction with the scope for promotion, not being challenged at work, seeking a higher salary, or feeling discriminated against.

Only yesterday, I read a news item on how companies were trying to tackle attrition in Indian companies at:

http://Companies try new steps to st...industan Times

I also read another article a while ago at:

http://Why after appraisals, curbing...Economic Times

Rather than summarize what those articles said, I will leave it to some student to summarize and contribute to this thread.

Thank you for your participation, which added value from a new angle. In higher levels, attrition is taking place for better prospects, to undertake challenging tasks, to acquire higher education, and to qualify themselves for combating future challenges. In some cases, workplace bullying may also be a contributing factor to attrition. Let us expect other experts to come up with further reasons.

Regards

Attrition in Government and Public Sector Units

Working environment, unethical HR practices, workplace bullying, etc., are the main reasons for attrition. But I wonder why the Government service and PSUs, which have the worst working environment or HR practices, do not have any attrition. Is it not because of the job security and respect that society gives to one employed there? I feel that these account for major attrition. Though the private sector offers a salary better than government or public sector companies, the latter offer security and respect in society. I have also found that wherever people are more employable, the attrition is very high. Perhaps that may be one of the reasons why government or PSUs do not have high attrition!

Regards,
Madhu.T.K

Thank you very much for participating in this discussion. As a matter of fact, whether we work or not, once we have joined the Government services, we will receive bi-yearly DA increases, Annual Increment (even though it is a meager amount), and even without promotions, our job is secured. No one can remove us from our position until we reach retirement age. We can receive time-bound promotions regardless of our performance, and we need not worry about our educational qualifications or knowledge enhancement. Therefore, the attrition level will be very low. The issue here arises not due to a lack of knowledge or literacy but rather due to laziness and carelessness.

However, as mentioned by Mr. Simhan Sir, talented individuals will not and cannot serve in Government organizations. The drive within them will not permit them to waste time and miss the opportunities to gain knowledge from various sources.

Let's hope that other members will contribute value to this topic.

Attrition in the Insurance Sector: A Ph.D. Scholar's Perspective

I am a Ph.D. scholar studying attrition in the insurance sector. Having worked in the insurance industry for more than 8 years and engaged in various discussions with my colleagues, I have summarized that a major contributing factor to attrition, especially in insurance, is a lack of a professional approach. More opportunities with more players entering the market, peer pressure, high targets, imbalance in work-life quality, lack of support from bosses or management, and poor motivation also contribute. This exhibits a wide gap between the attitudes of insurance employees and those of other financial services employees.

With the low penetration level of the insurance business in India (only 3% of the Indian population is covered by insurance), there is vast scope for employment opportunities and business development in our land. However, there isn't any proper vision or mission to achieve it. The insurance sector is the least preferred job avenue. I also blame the policymakers and insurance regulators for not properly educating people about the need for insurance and the development of proper jobs compared to the banking industry. Hence, there is an unbalanced or uncontrolled inequality in the demand and supply of job opportunities in the field of insurance.

The rest I shall learn from the seniors in this thread.

Transitioning from Finance to HR

Note: I am very new to the field of HR. I am a hardcore finance person who has now diversified into HR to learn about it. I find it all the more interesting than finance. Finance deals with the management of money, which is a common practice all over the world, unlike HR. Now, I understand that HR is a study of behavioral psychology, which differs with every individual and every situation. I would like to learn a lot from the seniors in the forum. Thank you all.

Regards,
Gayathri Sai

In addition to the points mentioned by seniors above, the following can also be reasons for high attrition in an organization:

1. Uncertain financial position of the organization/company.
2. Unfavorable work culture for female employees.
3. Very few chances of promotion to higher posts. For example, no opportunities for new employees to prove their worth and abilities.
4. Non-adherence to the policy or principles of natural justice in disputes between employers/higher officers and employees.

Let me summarize your view from the insurance sector's perspective to a general view:

1. Lack of a professional approach will lead employees to quit the organization. If a professional approach is maintained in addressing any issue, it will create a healthy working atmosphere for the employees. However, handling issues personally and engaging in the blame game will inevitably result in high attrition levels.

2. The presence of competitors in any industry leads to talent poaching, thereby increasing attrition rates.

3. Factors such as work pressure, lack of support from management in achieving targets, and unrealistic goals play a significant role in the escalating attrition rates.

4. Poor motivation and low morale levels also contribute to the rising attrition levels.

Thank you for your active participation. Let our other learned members provide their expert views on this subject.

Thank you for taking active participation in this thread and adding value by sharing your views. Obviously, the first and foremost reason for attrition is an uncertain financial position, which can lead to delayed payment or non-payment of wages to employees. If the organization is not providing a safe working environment, we cannot expect workers to stay and work for a longer period. Whenever they get a chance or their tolerance level is exceeded, they will quit the organization.

Employers should bear in mind the following for the existence of employees:

- Motivation for the employees
- Job rotation to prevent reluctance to work on the same tasks. Changing job profiles within the department can help employees avoid moving to other companies while enhancing their knowledge.
- Ensuring the right person is in the right job in line with HR policy
- Showing respect to experienced individuals regardless of gender
- Providing timely increments
- Engaging in welfare activities
- Organizing family get-togethers for all employees, from top to bottom levels of workers

All the points mentioned above are based on my experience.

Regards

Thank you for taking part in this discussion on the subject of Reasons for Attrition. As you have provided points on retention techniques, I am shifting the focus to the reasons for attrition.

Reasons for Attrition

Demotivated employees tend to seek job changes, leading to high attrition levels.

Repetitive and monotonous work can result in a higher attrition rate. To prevent this, job rotation is essential as it can help in limiting attrition. Moreover, in cases of any absence, job rotation enables the organization to involve another individual who has been trained through the practice of job rotation.

Respect for experience, age, and regardless of an individual's position, qualifications, or gender can reduce attrition levels. The absence of these aspects within the organization may result in a high attrition rate. Annual appraisals also play a significant role in managing attrition levels.

Maintaining interpersonal relationships with colleagues and organizing gatherings with family members can create stronger bonds with the organization, thereby aiding in controlling attrition.

I have summarized your points. If you feel there is anything else to add or have a differing opinion, please inform me. Let us collaborate to learn and share knowledge.

Regards,

According to recent findings, there are six reasons why the best employees quit the organization:

1) No Vision
Most employees don’t get out of bed each morning trying to hit a profit number. In the majority of companies, there are only a handful of people who truly care about it or, in some cases, even understand exactly what it means to hit that number. As a manager, don’t confuse your financial objectives with vision. Vision feeds financials and not the other way around.

2) No Connection To The Big Picture

3) No Empathy

4) No (Effective) Motivation

5) No Future

6) No Fun

Bhaskar, good thread being discussed from different perspectives. I like it. Here, I have captured all the thoughts shared by experts so far. Please add if I missed any.

Sr No. Reasons

1. Compensation
2. Family Reasons
3. Health Reasons
4. Peer Pressure/Bullying
5. Higher Education
6. Career Growth
7. Workplace Culture
8. Unethical HR Practices
9. Job Security
10. Poor Motivation
11. High Targets
12. Work Pressure
13. Biased Increments/Promotions
14. Support (Financial/Emotional)

In my experience, I have observed that Salary/Compensation, benefits, and Job Security were the most crucial reasons (around 72%) for employee resignations.

Regards,
Ukmitra

I would like to share a few points in my view resulting in attrition:

- Insufficient remuneration and employee benefits paid to employees by their employer.
- Mismatch of job profile.
- Job stress and work-life imbalances.
- Odd working hours/Early morning-night shifts.
- Entry of new companies and sectors into the market.
- Lack of authority provided to accomplish one's tasks.
- Monotony of the job.
- Lack of proper facilities provided by the employer.
- Lack of a proper environment.
- Poor concern about employees by their employer.
- Poor promotion policies or lack of promotion for a long time.
- Lack of timely communication by the employer.

Seniors, please correct me if I am wrong.

Regards,
keerthibala

On conclusion, I extend my sincere thanks to those who took an active part in sharing their knowledge with our community and made this thread very useful for students studying for an MBA. The attached file was sent by my mentor, which I feel will be highly beneficial for all our members. Let us hope that students and young HR professionals make use of this article.

Wishing you all success.

There are several reasons:

- Monetary considerations (unless you move, you won’t get more)
- Work environment (organizational culture does not recognize performance)
- Colleagues – bosses, peers, and direct reports – there is no synergy with everyone working in silos

A good way to identify these problems is through feedback. A 360-degree feedback survey would help a lot in identifying the problems.

Common Reasons for Employee Attrition

Generally, the following reasons are observed:

- Lack of respect
- Lack of support
- Monetary factors
- Lack of appreciation
- Increase in favoritism
- Lack of challenges in the job
- Inflexible work schedules
- Need for very well-working conditions
- Discrepancy between work and the individual
- Infrequent encouragement
- Organization prioritizing business concerns
- Pressure from overwork and work-life imbalance
- Employees needing pride in their work and what they do
- Loss of faith and confidence in superior leaders
- Work or workplace not meeting expectations
- A small number of helpful colleagues
- Insufficient coaching and feedback

Regards,
Sriwidh

The View on Attrition by Mr. Azim Premji

Those who did not see this earlier can make use of it. The contents are appended below.

Azim Premji, CEO - Wipro

Every company faces the problem of people leaving the company for better pay or profile.

Early this year, Mark, a senior software designer, got an offer from a prestigious international firm to work in its India operations developing specialized software. He was thrilled by the offer. He had heard a lot about the CEO. The salary was great. The company had all the right systems in place, employee-friendly human resources (HR) policies, a spanking new office, and the very best technology, even a canteen that served superb food.

Twice Mark was sent abroad for training. "My learning curve is the sharpest it's ever been," he said soon after he joined.

Last week, less than eight months after he joined, Mark walked out of the job.

Why did this talented employee leave?

Arun quit for the same reason that drives many good people away.

The answer lies in one of the largest studies undertaken by the Gallup Organization. The study surveyed over a million employees and 80,000 managers and was published in a book called "First Break All The Rules." It came up with this surprising finding:

If you're losing good people, look to their manager... the manager is the reason people stay and thrive in an organization. And he's the reason why people leave. When people leave, they take knowledge, experience, and contacts with them, straight to the competition.

"People leave managers, not companies," write the authors Marcus Buckingham and Curt Coffman.

Mostly, the manager drives people away.

HR experts say that of all the abuses, employees find humiliation the most intolerable. The first time, an employee may not leave, but a thought has been planted. The second time, that thought gets strengthened. The third time, he looks for another job.

When people cannot retort openly in anger, they do so by passive aggression. By digging their heels in and slowing down. By doing only what they are told to do and no more. By omitting to give the boss crucial information. Dev says: "If you work for a jerk, you basically want to get him into trouble. You don't have your heart and soul in the job."

Different managers can stress out employees in different ways - by being too controlling, too suspicious, too pushy, too critical, but they forget that workers are not fixed assets; they are free agents. When this goes on too long, an employee will quit - often over a trivial issue.

Talented men leave. Dead wood doesn't.

Attribution: https://www.citehr.com/30168-azim-pr...nisations.html