Employee turnover is expensive. Replacing top talent can cost over 200% of the departing employee’s salary in recruiting, hiring, and training costs. So why do high performers quit their jobs? Understanding the root causes can help managers retain their best employees.
Common reasons high performers quit
Here are some of the most common reasons that cause top talent to leave:
- Lack of growth opportunities – High performers want to continuously develop new skills and advance their careers. If they feel stuck in their role with no room for growth, they’ll look for growth opportunities elsewhere.
- Weak management – Employees don’t leave companies, they leave managers. Poor management that fails to provide support, feedback, trust, and appreciation pushes top talent out the door.
- Lack of recognition – High performers have high expectations for affirmation and praise when they go above and beyond. If their efforts go unnoticed, they may not feel valued.
- Poor work-life balance – Burnout is common among top performers who give more than 100% to their jobs. If companies don’t promote healthy work-life integration, talent will find companies that do.
- Toxic culture – From office politics to harassment and discrimination, toxic cultures drive out top performers. High performers value working in positive and psychologically safe environments.
- Limited advancement opportunities – Even top performers hit career plateaus in some companies. High performers quit if they see their career trajectory flattening with no options to move up.
- Higher pay – Money isn’t everything, but compensation matters. Top performers with in-demand skills will be recruited with attractive offers difficult to turn down.
- Relocation – Family or personal reasons may force high performers to quit if relocation isn’t an option with their current employer.
When do high performers quit?
Understanding when in an employee’s tenure turnover is most likely to occur can help managers better retain top talent:
| Time Period | Turnover Risk |
|---|---|
| 0-6 months | High |
| 7-12 months | Moderate |
| 1-2 years | Low |
| 2-3 years | Moderate |
| 3+ years | High |
Turnover risk is highest in the first 6 months as new hires determine if the job is a good fit. After settling into their roles, turnover risk decreases until around the 2 year mark. At this point, high performers seeking more responsibility and career growth may start looking if they feel stuck. Beyond 3 years, turnover risk increases again as job satisfaction steadily declines over time.
How to retain high performing employees
Here are some strategies managers can use to hold onto their top talent:
Offer development opportunities
High performers value continuous skills development. Create personalized development plans. Offer training, mentoring programs, new project opportunities, and daily challenges to help top talent continuously expand their capabilities.
Provide regular feedback
Don’t just do annual performance reviews. High performers want regular feedback on their work and progress. Provide coaching and feedback in real-time to affirm good work and quickly correct poor performance.
Give decision-making autonomy
Micromanaging kills motivation and innovation. Empower high performers to take ownership of projects and make decisions independently. Offer guidance, not directives.
Offer incentives beyond compensation
Money helps, but meaning and purpose matter more. Offer leadership opportunities, training budget, public recognition, work-from-home flexibility, and purpose-driven projects as incentives.
Promote work-life balance
Make work-life balance a priority in words and actions. Discourage overtime, be flexible with schedules, offer remote work options, and set the example by having a life outside work.
Listen to concerns
Have frequent one-on-one meetings to check in on employee satisfaction and concerns. Be open to feedback and implement suggested improvements to show you value employees’ perspectives.
Recognize contributions
Make recognition a consistent practice. Recognize high performers publicly, privately and through monetary rewards like bonuses and pay raises. A little appreciation goes a long way.
Cultivate an engaging culture
Foster a positive, supportive and fun work environment. Celebrate wins, encourage humor and camaraderie, and make the office a place high performers want to work.
Conclusion
Losing top talent is costly and preventable. Understand why high performers quit and take proactive steps to engage, develop and reward your best employees. A little effort spent on retention saves significant time, money and productivity down the road.