The Top 4 Reasons Employees Disengage and Quit

Reasons Employees Disengage and quit

Unfortunately, There Are Many Reasons Employees Disengage and Quit
Talent leaders should be keenly aware of the reasons employees disengage.  Our annual employee engagement survey research results tell us high levels of employee disengagement create:

  • 12% lower profits
  • 19% lower operating income
  • 28% lower earnings per share

The Cost of Employee Attrition
Additionally, each employee that leaves their employer costs the organization 1.5-to-2 times on average the employee’s fully loaded salary. And that doesn’t take into account the:

  • waning productivity before they left
  • effect on team morale
  • time off the job for those involved in hiring their replacement

What to Do?
Your first step is to understand the reasons employees disengage and leave and then to do something about it.

Defining Employee Disengagement
Let’s start with defining employee disengagement.  Employee engagement experts know that the first step is to use a valid tool to measure level of employee engagement.  Our Best Places to Work Employee Engagement Survey breaks employees into four profiles:

1.  Highly Engaged Employees
Employees with highly engagement favorable ratings who:

  • Are Advocates of the organization, its leaders, managers, employees, products, quality and future outlook
  • Give high levels of Discretionary Effort and are always thinking of ways to do their jobs better
  • Intend to Stay over the next 12-18 months because they feel loyal and connected and it would take a lot to get them to leave

2.  Moderately Engaged Employees
Employees with moderately favorable engagement ratings who are holding back where there is often the greatest opportunity for increased performance.

3.  Barely Engaged Employees
Indifferent employees who lack motivation and are at risk for leaving.

4.  Disengaged Employees
Employees with negative engagement ratings who lack commitment and are most likely impacting the productivity of others.

The Top 4 Reasons Employees Disengage and Quit
Let’s look at four reasons employees disengage and eventually quit:

1.  A Poor Fit For The Corporate Culture And A Poor Producer On The Job
This is an employee you don’t want to stay. Even if you can boost their skills, they will never change enough to truly fit. Workplace culture matters as it accounts for 40% of the difference between high and low performing organizations.  Culture:

  • Is the way employees behave when no one is looking
  • Includes the norms and standards of behavior that permeate the organization
  • Is shaped by the unwritten rules of how employees get things done and how they relate with one another

A cultural misfit will drag others down with the friction of their unacceptable modes of behavior.

2.  A Poor Culture Fit But A High Producer
The good news is that they do their job well. The bad news is that they are most likely damaging the rest of their team. This was probably a hiring mistake where there was not enough attention paid to corporate culture fit and too much paid to the skills the candidate brought with them.

These are often the toughest employees to let go because of their production, but their departure often brings a breath of fresh air for a team and is required to support a strong and healthy culture.

3.  A Good Culture Fit But A Poor Producer
In this situation, there is a lot a good manager can do.

  • Are performance expectations clear?
  • Does the job role take into account the employee’s strengths and interests?
  • Does the employee need additional training and coaching to develop relevant skills for the job?

These under performing employees often need targeted training and coaching support for them to lift their contribution.

4.  A Good Fit Culturally And A Good Performer On The Job
Do whatever you can to retain this high performing employee. Many factors help engage and retain top talent.  What can you change to keep this employee from leaving?

  • Evaluate the relationship with the manager
  • Take a look at the job role and how it aligns with the overall business strategy
  • Examine the rewards and recognition systems
  • Be sure there is a compelling career path forward for high performing employees

The Bottom Line
Unfortunately, there are many reasons employees disengage and quit. To be in a better position to attract, engage and retain top talent, hire smart based on attributes of high performing employees and your strategic direction combined with a clear understanding of the cultural fits that matter.

To learn more, download The Top 10 Most Powerful Ways to Boost Employee Engagement.

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LSA’s Employee Engagement Consulting and Survey work has provided critical visibility into: how well our people are holding up under the general economic environment, as well as, the specific challenges that face biotechnology companies in their efforts to discover and develop new medicines; their level of alignment and commitment to XOMA’s Vision and mission critical strategies; how leadership practices and management systems support an environment that engender commitment, and the specific actions that our leaders can take to improve on areas that are important to our people. I highly recommend LSA’s employee engagement solutions.

Chris Wells
Vice President, HR and IT

On behalf of Roche and my staff I would like to sincerely thank you for your help with this. The English as a Second Language (ESL) assessment and coaching that you provided for our team was a great success.

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Roche

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VP of Human Resources

Cutera

We recently partnered with LSA Global to offer our Supervisors and Managers a customized two-day management training program. Everyone who attended said it was by far the best management training program they had ever attended. The content was rich and highly interactive. The case studies were relevant. Each participant walked away from the training much better equipped to lead their teams.

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LSA helped us design and deliver a blended learning solution for our leaders to help drive our growth plans in a way that aligned with our specific culture and values. LSA understood our business, had deep expertise in the content areas, tailored the programs to fit our specific needs, and delivered great results. They constantly strive to deliver business impact and align their solutions with our business initiates, culture, and performance management systems. I highly recommend them to anyone looking to take their leaders to the next level.”

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VNUS Medical has been very pleased with the effective management development programs that LSA Global has delivered for us over the last four years. The programs have been universally facilitated by experienced and best in class instructors. The knowledge gained by our management team has been put into practice very quickly. VNUS is very happy to be working in partnership with LSA because they consistently deliver excellent programs that receive exceptional feedback from our management team.

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We engaged LSA to design and deliver a 6-month custom executive coaching program for a group of our key leaders. The focus of the program was to help a core group of senior leaders to leverage previous investments in management training, to ensure the engagement and retention of key employees, and to push critical strategic initiatives forward. Even with the high expectations of our senior people, LSA has completely exceeded our expectations. I would recommend them to anyone looking to create and implement a custom coaching methodology using proven tools to drive true change.

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What a refreshing change from the half-baked psycho-babble you normally get from training and consulting organizations. LSA gives you the practical and results-oriented assistance you need to define and reach your goal.  They provide a results driven plan – not just a temporary fix. They are great to work with, and even more importantly, they “get it!”

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The LSA Global team was very receptive and flexible to our needs every step of the way. Their staff and facilitator demonstrated attention to detail, responsiveness, and professional courtesy. The participants were thrilled with the outcome and rated the communication skills workshop and the facilitator as ‘Excellent’. I’d highly recommend working with the LSA Global team to meet your professional development needs.

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Intuit

We partnered with LSA to pilot a customized behavioral interviewing program to help ensure that we continue to hire the best and brightest as we continue to rapidly scale. LSA’s ability to understand our business and our unique culture combined with their desire to ensure that the best practices framework truly fits our performance environment and is highly adopted by our people is a real blessing. Most other firms want to just ‘give you training.’ Not LSA, they are focused on helping me hit our hiring forecasts and attract A players.

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Director of Global Recruiting

AKQA

LSA’s consultant designed and delivered a half-day team building solution for our recent conference. It included careful customization to integrate the design with our new mission and values. Everyone had fun and identified key issues with our teamwork. Altogether a great program!

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Director of HR

Harmonic has worked with LSA for over 8 years. We have found their partnership extremely beneficial. We recently implemented a Management Development Program that was designed and customized to support our company’s strategic initiative of hiring, building, and retaining key intellectual property and human talent. We worked closely with LSA to target and implement the right solutions with the greatest impact. I would recommend LSA to any company that’s looking for a trusted training and development partner.

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I have worked with LSA Global at previous companies and welcomed the opportunity to bring them in to support my new organization. We worked closely with LSA to design a solution for our Client Partner Teams and Management Training on both coasts. LSA designed a customized solution for our business and organizational culture. LSA is a quality organization, one that I’d recommend to any company looking for a first class training and consulting partner that makes an impact.

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LSA exceeded all my expectations. We interviewed 7 potential training and consulting partners and selected LSA due to their expertise, flexibility, and breadth and depth of solutions. We were able to construct a management training course from the modules most appropriate to our needs, and are able to provide additional training from their well developed portfolio of experts. Our managers galvanized as a team throughout the session and are better prepared for the rigors of a competitive market.

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Edify

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