Why people are leaving your company
...And what you can do about it
There’s an ongoing debate how important money really is for people. Based on my experience, I believe it’s naive to think (or hope) that it’s not all that important. Because in real life, it is. Perhaps it's different for yor personally. But for the majority, it is. Like it or not.
However, there’s so much more to say about remuneration. Because it certainly is not the only thing that is important for people! I’ve learned over the years that money is not perse a motivator, but when it’s below a certain mark, it becomes a demotivator. I've experienced situations with endless complaining and negotiations about salaries and bonusses. And that is exactly what companies should avoid when taking their renumeration decisions. Especially in these market conditions.
The labor market is currently very tight in many places. It is hurting performance of companies. In my conversations with CEO’s and their teams I often hear: we could produce more, we could do much more, if only we had more people with the right competencies.
For continuity reasons and value creation, it’s therefore critical to keep your backdoor closed. Avoid losing the people that you want to stay. Forget the official exit interviews for a minute. McKinsey published the eight most important reasons why people are really leaving. It's a couple of years old, but still very relevant. Just look at the conclusions. 
Out of the eight most important reasons, only inadequate compensation has direct financial impact for a company! While the other seven reasons can be also be addressed through other actions.
Let’s look at just a couple of the other reasons. For instance: lack of career advancement (41%). Are your managers in an ongoing conversation with their people? Do they know what really keeps their people awake at night? Are they assigning challenging projects to their (top) talent? Are they providing opportunities for adequate autonomy so employees can expand their skill set? Invest in these actions and better retain your best.
Let’s take a look at Lack of meaningful work (31%). What is the purpose of your company? And do you communicate it effectively? If your people go to work in the morning and really know deep inside how their contribution that day makes a contribution to the company’s purpose, that does make a difference! It may be obvious for you, but do not underestimate how often you need to repeat it before it sticks. We know from research that the younger generations find a sense of Purpose important. And it’s confirmed again in this survey. So, the question is: is your company purpose clear? Is it magnetic for your people?
Don’t retain your (best) people only by paying them more money. Pay them enough so it's not a reason to move on. That's a huge difference. Yes, sometimes increasing salaries to attract and retain is part of the optimal solution. But other initiatives such as Leadership Development, Executive Coaching, reconnecting to the company Purpose will produce results. These actions create value. A double-edged sword.
Hope this inspires.
Paul Donkers
Paul P.J. Donkers is a sought-after global business coach and management consultant. More about his work and projects can be found via www.tencompany.org and via www.ikigaicoachinginstitute.com
Paul and his partners work since decades with leaders to assist them create more value. If you want to have a confidential conversation, just reach out to us via This email address is being protected from spambots. You need JavaScript enabled to view it.
