May 2010 - Sukhjit Lalli, CA


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Why Employees Quit - Mercer Bradley

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May 2010 - Sukhjit Lalli, CA

  1. 1. Top 10: Reasons Why Employees Quit Retaining staff saves money and upheaval Sukhjit Lalli Mercer Bradley
  2. 2. 1. Job not as expected <ul><li>Job changes from the original description and what was promised during the interviewing stages. </li></ul><ul><li>The new hire starts to mistrust the employer and starts thinking, “Am I being lied to?” </li></ul><ul><li>Often the case when firms are experiencing growth. They hire for the future rather than for today. </li></ul><ul><li>Particularly relevant for CAs making their first move into industry. </li></ul>
  3. 3. 2. Work/life imbalance <ul><li>Management demands one person do the job of two. </li></ul><ul><li>Especially true when a company downsizes or restructures. </li></ul><ul><li>Particularly relevant for public practices as they have strong seasonal peaks in workload. </li></ul><ul><li>Major reason why employees leave public practice for industry. </li></ul><ul><li>Generally people live in the Valley as they have families. </li></ul><ul><li>Suggests to employees that they are not cared about. </li></ul><ul><li>Employees are very wary about firms claiming they have work/life balances, they need proof. </li></ul>
  4. 4. 3. Mismatch <ul><li>No matter how much you love certain candidates, don’t hire them unless they are qualified for the job and mesh with your company culture. </li></ul><ul><li>Use personality assessments. </li></ul><ul><li>Take the opportunity to socialize – coffee, lunch, drinks, include the partner. </li></ul><ul><li>Meet the team. </li></ul>
  5. 5. 4. Lack of pay <ul><li>Not the first reason but it does rank highly. </li></ul><ul><li>Often an employee can find a job earning 15% to 25% more. </li></ul><ul><li>Particularly relevant for jobs in Canadian or US tax. </li></ul><ul><li>Employees have access to information –salary surveys, job boards, peers in other firms etc </li></ul><ul><li>In public practice employees know their charge out rate. </li></ul><ul><li>Research shows that cost of rehiring is 3 times annual salary. </li></ul><ul><li>Don’t leave it too late; knee jerk reactions on resignation. </li></ul>
  6. 6. 5. Feeling undervalued. <ul><li>It’s human nature to want to be recognized and praised for a job well done. </li></ul><ul><li>Effective way to communicate your appreciation while also reinforcing those actions and behaviors. </li></ul><ul><li>Often the case when employers are very busy. </li></ul><ul><li>Gift vouchers, bonuses, gifts for partners, additional vacation. </li></ul><ul><li>Lack of information about what is changing </li></ul><ul><li>in a business leads to feeling left out. </li></ul>
  7. 7. 6. Lack of decision-making power. <ul><li>Too many managers micromanage down to the finest detail. </li></ul><ul><li>Empower your employees and allow them the freedom to make suggestions and decisions. </li></ul><ul><li>Can be scary for an employer but is a necessity. </li></ul><ul><li>Critical you hire the right people. </li></ul><ul><li>Making collaborative decisions forces employee buy-in. </li></ul>
  8. 8. 7. Too little coaching and feedback. <ul><li>Many managers have no clue how to help employees improve their performance. </li></ul><ul><li>Giving and getting honest feedback is essential for growth and building successful teams. </li></ul><ul><li>Critical for employees to feel like they </li></ul><ul><li>are benefiting from their employment. </li></ul><ul><li>Places demands on management time. </li></ul><ul><li>People like to know where they stand. </li></ul>
  9. 9. 8. Management lacks people skills. <ul><li>Remember that many managers were promoted because they did their first job well, but that doesn’t mean they know how to lead others. </li></ul><ul><li>People skills can be learned and developed, but it really helps if a manager has a natural ability to get along with people and motivate them. </li></ul>
  10. 10. 9. Too few growth opportunities. <ul><li>One of the most common reasons employees express for leaving their jobs is lack of challenge. </li></ul><ul><li>The most successful employers find ways to help employees develop new skills and responsibilities in their current positions. </li></ul><ul><li>Major reason for employees leaving public practice to move into industry. Tired of looking backwards. </li></ul><ul><li>Inevitable fact of many small to medium privately owned businesses so cross-train. </li></ul>
  11. 11. 10. Excessive commute. <ul><li>Employees in the Fraser Valley hate crossing bridges! </li></ul><ul><li>Generally anything more than a 30 minute commute can be a flight risk long-term. </li></ul><ul><li>Unhealthy, research shows that employees who live far from work are unable to build meaningful relationships. </li></ul><ul><li>Increased risk of tardiness and tiredness. </li></ul>