Why Do Companies Experience High Employee Turnover?

Why Do Companies Experience High Employee Turnover?

In any business, high employee turnover can be a sign of trouble. But what are the causes behind this worrisome trend? Every business owner must closely analyze this situation to keep their businesses running smoothly.

High employee turnover can lead to compromised productivity and morale and increased expenses related to recruitment and training. So what exactly puts employees on the hunt for new jobs?

What is High Employee Turnover?

Employee turnover, or “churn” as it’s sometimes called in the business world, is the rate at which employees leave a company. While some employee turnover is inevitable – people move, retire, or decide that they’re not a good fit for a particular job – high employee turnover can signify something is wrong within a company.

Factors Leading to Increased Employee Turnover:

Several factors can contribute to high employee turnover in a firm, but some of the most common include:

Poor Management:

Employees who don’t feel like they have a good relationship with their managers are more likely to look for new jobs. Signs of a poor relationship include micromanagement, a lack of trust, and a general feeling that your manager is not invested in your success.

Lack of Opportunities for Advancement:

If employees feel stuck in a dead-end job, they will start to look for new opportunities. It is especially true for millennials, known for their desire to move up within a company quickly. Lack of opportunities may mean no room for growth or unfair promotions.

Lack of Engagement:

Employees who are not engaged are less likely to be productive and more likely to look for new jobs. A lack of engagement can be caused by a dull or monotonous job or an insufficient work-life balance. Feeling underappreciated may also harm employee engagement.

Low Salary:

It is no secret that employees expect fair monetary compensation for their services. If they feel like they are not being paid enough, they will look for other jobs that offer a higher salary. In some cases, employees may also leave because of a lack of benefits or perks. These perks include things like healthcare, paid vacation days, and 401k matching.

Bad Company Culture:

The culture of a company plays a significant role in employee engagement. If the company culture is negative, employees will be less likely to feel engaged in their work. A lot of drama, politics, and infighting are all characteristics of failing company culture. It can make going to work every day feel like a chore.

Poor Work/Life Balance:

More and more employees are valuing work/life balance, and companies that don’t offer it are at a disadvantage. Poor work/life balance can lead to employees feeling overworked and stressed out. It can decrease productivity and increase the chances of mistakes. It can also lead to them feeling burnt out and resentful, which can eventually lead to them leaving the company.


Companies can work on their employee turnover issue by improving headhunting and onboarding processes. Several job placement firms offer their expertise to help with this.

Mitsuoka and Company, serving Seattle, has a team of exceptional recruiters who can help you find the best candidates for your organization. If you need assistance with hiring, contact us today!


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