5 Reasons Why Employees Quit – and 5 Tips to Keep Them

Retention is the new recruiting. We’re sharing the top reasons why employees leave – and our five best tips to make them stay. 

Employees in Germany are more willing to change jobs than ever. Depending on the study, between 36 and 73 percent of workers are considering a job change or actively planning one. At first glance, that’s a good thing. It shows that the job market has shifted to favor employees. Job seekers can afford to be selective and look for positions that truly suit them – something that, in the long run, benefits us all.

Still, as an HR professional or recruiter, you naturally want to retain your employees. But why do employees leave a company in the first place? And what concrete actions can help keep them on board?

As employer branding experts, we’ve summarized the top five reasons employees resign – and five benefits that will make them want to stay with your company.

Top 5 Reasons Employees Quit 

Reason 1: Salary and Financial Incentives 

Salary remains a key reason employees seek new job opportunities. According to a recent XING study, up to 38 percent of respondents cited pay as a motivating factor to switch jobs. Key indicators for the cost of living – such as inflation and food prices – have risen noticeably in recent years. Many employees are keeping a close eye on their income to ensure it still covers their needs. If their earnings are stagnant or too low, they’ll start looking for more lucrative options.

Reason 2: Work-Life Balance 

Work plays a major role in people’s lives – but not the only one. Whether they're caring for loved ones, raising children, or simply want more time to pursue their personal hobbies, many employees seek a healthy work-life balance. Thus, naturally they value new work offerings, such as flexible working hours, remote work, and part-time arrangements. If employers can’t offer these, employees will increasingly look for jobs that better suit their needs and lifestyles.

Reason 3: Leadership Culture and Relationship with Managers

Toxic leadership or a strained relationship with superiors also pushes employees to quit. Often, it comes down to the behavior of the manager. A lack of empathy or an authoritarian style can drive employees away. Poor leadership practices – such as unclear expectations or unreliable behavior – make employees doubt their managers’ competence. If leaders fail to communicate or lead effectively, frustration is inevitable.

Reason 4: Career Development Opportunities

Employees want to grow. They want to take on tasks and responsibilities that match their skills and experience. If they feel stuck, a job change becomes appealing. A higher salary may play a role, but so does the desire for change – whether by exploring a new career path or entering a different industry as a lateral hire.

Reason 5: Stress and Workload 

Finally, high workloads and stress drive people to leave. Unlike work-life balance, this factor is less about the time spent working and more about the nature of the workload. Stress arises when employees juggle too many tasks or face unrealistic deadlines. Even being assigned tasks that don’t fit their strengths can be overwhelming. When the discomfort with their daily tasks becomes too much, they look for relief – often by switching jobs.

5 Benefits That Help Retain Employees

Benefit 1: Transparent Salary Structures and Regular Reviews

Not every company can offer high salaries or annual raises. But every company can be transparent. A salary model that clearly outlines pay ranges for different roles helps employees see that your approach to compensation is fair. Offering regular salary reviews reassures them that their income won’t remain stagnant in the long run.

Benefit 2: Flexible Working Hours and Remote Work

Since the pandemic, remote work has become a standard part of professional life. Recently, however, some companies – like Mercedes in Germany – have started calling employees back to the office. This might prove a mistake. Remote work offers real advantages for both employees and employers, and strengthens your employer brand. By allowing at least partial remote work, you offer flexibility and show that you trust your employees.

Benefit 3: Feedback Sessions and Open Communication

Leaders rarely get the feedback they need to grow. Employees are often hesitant to give honest criticism to their superiors – even if they don’t have to expect repercussions. This stifles managers’ personal development and growth. To break this cycle, consider implementing regular feedback sessions (e.g., quarterly). These provide a safe space for employees to share constructive input, quickly resolve misunderstandings, and support leadership training.

Benefit 4: Mentoring Programs

Mentoring programs are a smart investment in employee growth and retention. Mentors help newcomers settle in and provide insight into potential career paths. They also act as advocates in salary and promotion discussions. This reassures new hires that they’re not stuck – and improves onboarding and internal hiring practices.

Benefit 5: Team Meetings for Workload Sharing

Regular team meetings help keep workloads visible and balanced. Discussing task scope, progress, and challenges fosters transparency, empathy, and teamwork. It prevents individual team members from becoming overwhelmed and minimizes bottlenecks. It also strengthens team cohesion and alignment with broader goals.

Conclusion

Low or stagnant pay, poor work-life balance, limited growth opportunities, stress, and bad leadership – these are the key reasons why employees leave. And often, it's the top talent who go first. But it doesn’t have to be that way. With the right measures – transparent salaries, flexible working models, regular feedback, mentoring, and team collaboration – you can boost employee satisfaction. That way, you retain your people and inspire them to new heights.

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