Top 5 Reasons Someone Stays at a Job

From financial fulfillment to professional growth, there are numerous factors that play into why someone stays in a job. And for employers, understanding what keeps employees committed is vital.

Creating an environment where team members stick around, new hires thrive, and top talent is attracted is key.

In this article, we’ll take a closer look at why employee retention matters, while also diving into five reasons why employees choose to stay put in a job.

Let’s get started.

INFOGRAPHIC: Employee Retention: How Do Culture & Connection Play a Role?

Why Retention Matters

Employee retention is a concern on the minds of most hiring managers and business leaders. Here are a few reasons why retaining employees is good for business:

  • Hiring and training new employees is expensive. The Society of Human Resource Management estimates that the cost to replace an employee can be as much as three times the position’s salary.
  • Institutional knowledge is lost when tenured employees leave. Everyone who is well-trained and knows your products, processes, and customers is valuable to your organization. It takes time to train a new employee on their role and the company’s operations.
  • Retention helps build customer trust. Your customers notice when a person they have a rapport with isn’t there anymore.
  • Productivity is lost when team members are always being replaced. Waiting for new hires to get up to speed can slow productivity and delay the completion of projects.

Top 5 Reasons Employees Stay

Many factors incentivize people to stay in roles. Some of them are financial in nature, while others are more about the work environment. Here are five reasons that someone may choose to stay at a job.

1. Pay

Pay is an important factor in the lives of most people. Everyone in an organization works to provide for themselves and/or their families.

When hiring for a role, it’s crucial to know the market salary and plan accordingly. Offering a competitive wage gives people a sense of stability and a stronger commitment to their role.

2. Opportunities for Advancement

Following the Great Resignation, the U.S. “quit rate” reached a 20-year high. According to a Pew Research Center report, many of these workers cited a lack of career advancement as a major reason for leaving their roles.

Ensuring your workers have a clear path forward with opportunities for promotions helps motivate them to stay because it makes them feel valued. Moreover, their institutional knowledge can be passed down to the new hires they train.

3. Positive Culture

Your company’s culture can be an invaluable asset when it comes to retaining employees. A Glassdoor survey found that 56% of people would choose a good company culture over a higher salary.

In a good culture, people support each other, are respectful of one another, and feel like valued members of their teams. A toxic company culture can cause employees to leave.

4. Work-Life Balance

Many workers are seeking work-life balance, whether that means being more present for their loved ones, pursuing their hobbies, or working on continuing their education.

Ensure your employees can take time and unplug from work now and again. Not only is this appreciated, but it helps them maintain dedication toward your company, which goes a long way when it comes to retention.

5. Good Benefits

Benefits are an important piece of the retention puzzle. Employees want to know the companies they work for value their well-being, and offering a fair benefits package is one of the best ways to show them. An attractive benefits package could include some of all the following:

  • Affordable health insurance
  • Retirement savings plan
  • Paid parental leave
  • Career development training
  • Paid time off
  • Structured wage growth
  • Employee discounts
  • Volunteer time off

RELATED: 17 Great Benefits and Perks at Work To Attract Employees

Are Your Employees Happy?

Fair compensation, growth opportunities, a positive work environment, and work-life balance are pillars that uphold employee satisfaction and retention. By addressing these areas first, companies retain top talent and create a thriving and engaged workforce!

How to Build a Thriving Team Culture and Improve Results