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Each time an employee resigns, the company loses time, money and effort to replace him or her.  Staff retention, particularly of the key employees, must be a major priority for a business.  While some staff turnover could not be avoided and at times is necessary, a stream of departing employees has a negative impact on the morale of the staff.  This, too, will affect the confidence of clients or customers in the company.  They will wonder what is wrong with the company or with its management.

Jo Mithen, CEO of the Australian Human Resources Institute, pointedly says “Poor management is certainly one issue with staff retention.”  Employers or the management should understand why people are leaving.  They should make the necessary changes to prevent departure of other employees for the same reason.

While money is the most common reason employees leave, employees who are happy and enjoy their work do not just leave because they want more.  There is usually some dissatisfaction in the work place that will push them to start looking for a new job.

Among the top reasons people quit their job are the lack of challenge and empowerment.  Employees should be allowed to try working in different areas of the business or be given challenging assignments now and then to avoid boredom.  They should be given some responsibility to make minor decisions.

Aloof, cold and formal dealings may have replaced the once open, transparent and personal connection with the boss.  Key employees may miss the old boss they enjoyed working with.  Employees also yearn for recognition or compliment for their extra efforts in helping in the business.  Some no longer enjoy their work.

Here are more reasons compiled by Jeff Haden at Inc.com

When it’s not about money, your star employees are probably jumping ship for one of these reasons.

Sometimes great employees leave because you can’t afford to pay them more and they can earn more somewhere else. Often, though, great employees leave because your company has changed—and they don’t want to change with it.

Here are six of the top (non salary) reasons your best employees will leave:

1. The business grew—and so did your ego. Key employees knew you before you were “somebody.” Make sure they always get to see the real person behind your brand shell, because that’s the person they want to work with.

2. A cool startup became a corporation. Building too many systems and imposing too many constraints, especially without getting input from key employees, makes your best employees start to reminisce about the good old days… and eventually leave.

3. The sky is no longer the limit. Great employees may not know what they want to do two, five, or 10 years from now, but they want to know they have possibilities. When your business matures and the only promotion left is replacing you, those possibilities disappear. Ask key employees for their ideas. Ask how you can help them feel they are still progressing. If a great employee feels every other door is closed, they’ll head for the exit door.

4. Exceptional skill forged handcuffs. Key employees are key because they can do things others can’t, so the gal who does the best job keeping the trains running eventually gets stuck being the one who always runs the trains. And she starts to feel stifled. And she starts to long for excitement and challenge.

5. Flat is now layered. It’s a tough line to straddle, but do your best to maintain the connection you once had without undermining an employee’s new boss. Remember, layers inevitably create barriers, so how you operate within and through those layers means everything to your best employees. …

Photo by johnkoht