Why Employees Leave: It’s Not Just About the Money

As a recruiter, I regularly hear the real reasons why employees leave their jobs. Interestingly, in over 70% of exit interviews, departing employees admit to not being completely transparent with their employer about why they are leaving. However, in confidential conversations with me, a neutral third party, they readily reveal the true factors behind their decision. After many such discussions over the past year, several consistent themes have emerged, none of which actually have to do with compensation. I thought I would share these with you.

Toxic Work Environments

By far the most common driver of turnover is negative company culture, including ineffective management, lack of recognition, and poor communication. Many employees reported feeling unsupported by HR, who they felt were defensive and biased, rather than impartial.

Lack of Engagement

Another major factor was simply feeling uninspired, bored, or not challenged in their work, especially for remote employees who lacked psychological connection and loyalty to their employer.

Ineffective Leadership

The saying “people leave managers, not companies” rang true in many cases. Micromanagement, aggression, and perceived unfair treatment compared to peers were common complaints about direct supervisors.

Work-Life Imbalance

In 2023, most companies scaled back hiring to cut costs, placing excessive workloads on existing employees leading to long hours and burnout. This widespread lack of work-life balance has been unsustainable for many. Candidates complained they workloads were excessive and unbearable.

Well-Being Neglect

Excessive workloads and high pressure, paired with insufficient support for mental and physical health, has resulted in resignations due to sheer exhaustion. Many explained wanting to “take a step back” from advancing their careers due to this intense burnout.

Values Misalignment

A company’s ethical practices and political alignment have also become dealbreakers for today’s workforce. Employees today want to work for organisations whose values align with their own.

While compensation and career growth remain factors as well, they were not the primary drivers I heard. And in fact, some employees who left higher paying but unsatisfying jobs in 2023 later regretted prioritising salary over culture and work-life balance.

The tight labour market means employers must go beyond compensation to attract and retain top talent. Employees today are seeking inspiring leaders, healthy work environments, engagement in meaningful work, work-life balance, and values alignment. The organisations that build cultures oriented around these human needs will win the war for talent.