Why our top workers leave us and how to stop it
Losing top talent is one of the biggest headaches for business leaders.
Whether it’s a remote star or a key team member, employee turnover disrupts operations, spikes hiring costs, and sinks morale.
But if you understand why your best people leave—and how to stop it—you can build a stronger, more stable team.
In this post, we’ll explore the complex reasons behind why your top workers might resign and what actionable steps you can take to retain them.
Why top employees leave: The root causes
Most business leaders are familiar with the surface reasons why workers leave—money, a bad manager, or a lack of career growth.
But it’s rarely that simple.
Employees leave for a mix of internal, external, and personal reasons. Each decision to leave is the culmination of many factors, both within and outside your control.
According to a Gallup study, 52% of voluntarily exiting employees say their manager or organization could have done something to prevent them from leaving. This suggests that deeper issues, often left unaddressed, drive employee departures.
Internal factors: What happens within the company
Internal factors are everything within the company that influences a worker’s decision to stay or go.
You, as an employer, have a significant degree of control over these variables.
A. Management and Leadership
A good manager can make or break an employee’s experience.
Research by Gallup has consistently shown that managers account for at least 70% of variance in employee engagement scores. If employees feel misunderstood or micromanaged, they’ll likely look for a new job where their value is better recognized.
B. Career Satisfaction
One of the major reasons employees leave is career stagnation.
According to LinkedIn’s 2023 Workplace Learning Report, only 15% of employees say their organization encouraged them to move to a new role.
Meanwhile, 14% say their organization encouraged them to build a new career development plan.
Hiring talented people is not enough—you need to invest in their growth continuously.
C. Company Culture and Work Environment
Toxic environments are a significant reason why employees leave.
An MIT Sloan Management Review report found that a toxic corporate culture is 10.4 times more potent than compensation in predicting a company’s attrition rate.
External factors: Life outside work
Many employees leave not because of issues directly related to the company but because of external factors influencing their life outside of work.
A. Family Responsibilities
This is particularly relevant for remote workers from countries like the Philippines, where family obligations often take precedence.
Research on remote workers shows that managing work and family boundaries can be particularly challenging.
Remote work can lead to work intruding on family life, which exacerbates family-to-work conflicts. This is especially true in environments where strong family obligations exist, like the Philippines.
B. Education and Personal Development
Employees might resign to pursue further education or personal interests that conflict with their current job.
The lack of company-driven career development opportunities has been identified as the top reason for employee turnover. Various studies indicate that employees seek roles where they can grow and develop their skills.
For instance, a 2023 report from Work Institute confirmed that this concern remains the foremost reason for quitting jobs across different demographics.
C. Health Considerations
Personal health can also push workers to leave.
The fact is that everyone gets sick as we age. More health issues will pop up when you hit your 30s and 40s.
It’s just different in your 20s, where you can survive on 4 to 6 hours of sleep without any adverse effects. However, in your late 30s to 40s, that becomes highly unsustainable, leading to more serious health issues.
Additionally, working full US hours (which is PHT 10 PM to 7 AM, or similar hours) can work for some but not all. Some people can hack it, especially if they are younger or the body clock is aligned with this. That said, these work hours are not sustainable.
Our best advice for employers is to set working hours that overlap 3 to 5 hours within US hours. The remaining working hours must be flexible for your employees.
Personal factors: The individual’s own journey
Personal aspirations and internal motivations, or “self-factors,” play a prominent role in a worker’s decision to stay or leave.
These are intrinsic to the individual but can be influenced by how you engage with your employees.
A. Career Aspirations
Workers who start highly career-driven might reprioritize their goals as they get older.
A study published in 2022 examined how age influences worker motivation and preferences. It found that older workers tend to prioritize emotionally meaningful work over professional growth opportunities.
B. Mental and Emotional Health
Burnout is an increasingly common reason for turnover.
Many workers feel overwhelmed by their job demands.
According to a report by Gallup, 44% of people globally experience significant workplace stress daily.
This stress can contribute to burnout, a severe health issue affecting employee retention and overall well-being.
Early warning signs: How to identify “at-risk” employees
It’s one thing to understand why employees leave, but another to identify when someone is on the verge of resigning.
Unfortunately, when someone resigns, it’s often too late.
So, your goal is to create an early warning system that detects potential issues before they escalate.
Here’s how to start:
1. Conduct regular check-ins (and be specific)
Most managers are familiar with vague questions like, “How’s everything going?”
While well-meaning, this open-ended approach rarely yields useful information.
Employees are often reluctant to share their feelings, especially if unhappy. To gain meaningful insights, ask specific questions during one-on-ones or check-ins:
- “How’s your family doing?”
- “Are there any personal challenges you’re facing that we could support you with?”
- “Is the workload manageable for you?”
Being direct yet empathetic can encourage employees to open up about issues they may be experiencing.
A study published in Frontiers in Psychology found that empathetic leadership positively relates to employees’ innovative behavior.
The research highlights that empathetic leaders provide emotional support. This allows people to feel safe expressing their ideas and concerns.
This environment reduces fear and encourages innovative thinking, suggesting empathy can lead to open communication about workplace issues.
2. Take employee feedback on management seriously
Ensuring your management team knows how their actions are perceived is key to retention.
So, while it might be uncomfortable, gathering employee feedback about their direct managers is essential.
A survey highlighted that 35% of executives believe that unhappiness with management is the primary reason good employees quit their jobs, marking a notable increase from previous years.
3. Address work-life balance
One of the most overlooked factors in employee retention is work-life balance, especially for remote workers.
A study published by the National Institutes of Health emphasizes that while remote work can enhance autonomy and control over work schedules, it often leads to challenges in maintaining work-life balance.
This imbalance negatively affects employees’ overall well-being, increasing turnover due to their dissatisfaction with their work-life integration.
By offering flexible hours or work-from-home options, you’ll show you care about your employees’ well-being, which builds loyalty.
Retaining top talent: Actionable tips
Once you’ve identified potential risks, the next step is implementing strategies to retain your best employees. Here are a few actionable tactics that can help.
1. Offer career development opportunities
As previously mentioned, career stagnation is one of the top reasons employees leave. To retain your top talent, provide clear pathways for advancement within your company. This could include:
Professional development programs
Sponsor courses or certifications that align with the employee’s career goals.
Offer to fund an advanced data science course for an employee specializing in data analytics. Or, sponsor a marketing team member to get certified in Google Ads. This will allow them to sharpen their skills while contributing to your business.
Mentorship opportunities
Connect workers with more experienced team members or external mentors who can help them navigate their career progression.
For example, pair a junior developer with a senior engineer who can guide coding practices, career advancement, and navigating complex projects. Alternatively, bring in an external mentor with industry expertise to guide an employee’s professional growth.
Leadership roles
For employees interested in growth, offer leadership or project management roles that allow them to take on more responsibility.
Promote a high-performing team member to lead a new product launch, allowing them to manage cross-functional teams and learn critical leadership skills.
Or, allow an employee to spearhead a vital project, with oversight and coaching from senior management to support their development.
2. Create a transparent work environment
Lack of transparency in the workplace can lead to misunderstandings and mistrust, both of which increase the likelihood of turnover.
A study published in The Journal of Business Economics posits that when employees perceive their work environment as lacking transparency, their job satisfaction declines. This, in turn, increases their likelihood of leaving the organization.
So, as an employer, be open about your company’s goals, performance metrics, and decision-making processes.
Employees who understand how they fit into the bigger picture are likelier to stay engaged.
3. Improve compensation and benefits
While compensation is not always the sole reason for leaving, it is a significant factor, especially for remote workers.
Many Filipino remote workers, for instance, may rely on their salary to support extended families.
Ensuring competitive pay and offering benefits such as health insurance or wellness programs can significantly affect retention. According to a recent report by Payscale, the perception of unfair pay significantly impacts employee turnover.
4. Foster a positive company culture
Lastly, building a positive, supportive company culture is essential. Employees who feel connected to their colleagues and the company mission are less likely to leave.
The research indicates that a strong sense of belonging enhances employee engagement and leads to a 56% increase in job performance and a 50% reduction in turnover risk.
These findings suggest that when employees feel they are part of a community, they are more likely to contribute positively to and remain loyal to their organization.
Invest in your employees to keep them
Preventing turnover is not a one-size-fits-all approach.
It requires a nuanced understanding of why workers leave and implementing a combination of proactive strategies.
Addressing factors to employee resignations and creating an open, supportive work environment can help retain your top talent for the long term.
Retention starts with a mindset shift—moving from a reactive to a proactive approach.
By conducting regular check-ins, addressing management issues, and offering flexibility and career growth opportunities, you can create a more stable, satisfied workforce.
Remember, your business’s success is directly tied to your employees’ happiness and well-being.
Keep them engaged, and they’ll keep your company thriving.