Do You Really Know Why Employees Leave Your Company?

 

Here is an excerpt from an article written by Anthony C. Klotz and Mark C. Bolino for Harvard Business Review and the HBR Blog Network. To read the complete article, check out the wealth of free resources, obtain subscription information, and receive HBR email alerts, please click here.

Credit:  Jeffery Hamilton/Getty Images

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More employees are voluntarily leaving their jobs than at almost any other time this millennium. When an employee quits, it can feel like a gut punch, leaving managers scrambling both emotionally and operationally. The loss can be particularly acute when employees “ghost” their organization, simply not showing up to work, sometimes only days after starting the job.

In his New York Times best seller, Principles, Ray Dalio argues that setbacks, like losing a valued employee, provide an important learning opportunity for organizations — as long as leaders are willing to reflect on and identify the root cause of such losses. Too often, though, managers and HR professionals are so busy doing damage control that they fail to conduct a thorough autopsy to help them understand what happened and what corrective action is needed to prevent similar episodes from occurring in the future.

Of course, many organizations have an exit interview process that should, ostensibly, provide insights to help improve employee retention. However, even when conducted well, these interviews have serious shortcomings. Most notably, in cases of ghosting and other acts of impulsive quitting, workers may depart before their organization has the opportunity to conduct one. Even when exit interviews take place, research suggests that a large percentage of employees are not candid. Whereas some departing employees mask critical feedback in order to leave a positive impression, others feel that providing this information is a waste of time because they believe the company is unwilling to change. In addition, departing employees may feel that, because of how poorly their company treated them, management does not deserve to know their true reasons for leaving. In short, exit interviews are often ineffective.

So how can organizations respond to resignations in more constructive ways — ways that might transform the pain of employee turnover into progress? Based on our research studying the experiences of hundreds of resigning employees and the managers of recently resigned employees, we offer three recommendations:

Investigate how the employee resigned. People typically resign using one of seven styles, which range from positive and constructive to negative and harmful:

  • Grateful goodbye: employees show appreciation and provide assistance as they depart
  • In the loop: employees keep their supervisor apprised of their intention to leave
  • By the book: employees give standard notice and an explanation for their departure
  • Perfunctory: employees resign by the book but do not explain why they are leaving
  • Avoidant: employees indirectly inform their manager or let word of their resignation filter back to them
  • Bridge burning: employees engage in harmful dysfunctional behavior on their way out
  • Impulsive quitting: employees walk out without giving any prior notice

These styles often reflect how departing employees feel they were treated by their organization and their manager prior to leaving. Therefore, if many employees within a firm resign by expressing gratitude and giving reasonable notice, this may signal that the organization is a healthy place to work. On the other hand, if bridges tend to get burned during employee resignations, leaders should take this as a signal that they should investigate the cause of these destructive departures.

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Here is a direct link to the complete article.

Anthony C. Klotz is an Associate Professor of Management at Texas A&M University’s Mays Business School.

Mark C. Bolino is the David L. Boren Professor and Michael F. Price Chair in International Business at the University of Oklahoma’s Price College of Business.

 

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