Employer Resources

The Hidden Causes of Employee Turnover: What You Might Be Overlooking

By Melissa Montoril on July, 9 2024
5 minute read

Stay up to date

Melissa Montoril

Melissa is an employee benefits specialist with over ten years of experience in group insurance.

For the past few years, due to the impact of the pandemic, there have been significant shifts in the labor market, leading to employees reassessing their careers.

Employee turnover is a persistent challenge for organizations across industries. It is often attributed to factors like compensation, work-life balance, and career advancement opportunities. However, beneath these well-known reasons lie hidden causes that can significantly impact retention rates. Understanding and addressing these overlooked factors is crucial for promoting a stable and productive workforce. 

In this article, we will discuss what might be contributing to employee turnover that organizations often overlook. 

Many factors play a role in employee dissatisfaction and, consequently, turnover. Here are some of the causes and what motivates them:


Poor Management and Leadership

Managers play a pivotal role in employee retention. A manager's leadership style, communication skills, and ability to provide guidance and support directly impact team morale and satisfaction. When employees feel disengaged or unsupported by their managers, they are inclined to explore other employment options where they feel valued and respected.


Workplace Culture and Values Misalignment

A cohesive workplace culture built on shared values fosters a sense of belonging and commitment among employees. When organizational values clash with individual beliefs or when inclusivity and diversity are lacking, employees may feel disconnected and opt to leave for a more culturally aligned environment.



Lack of Recognition and Appreciation

Employees who feel undervalued or unappreciated are more likely to seek opportunities elsewhere. Recognition goes beyond monetary rewards; it encompasses acknowledgment of efforts, achievements, and contributions. Organizations that fail to encourage a culture of appreciation risk losing talented employees to competitors who offer a more supportive environment.


Inadequate Benefits and Perks

Beyond salary, comprehensive benefits and perks that support employees' well-being, such as health and dental care benefits, retirement plans, wellness programs, and flexible work arrangements, are increasingly valued. Organizations that fail to offer competitive benefits packages struggle to retain top talent. 


Lack of Career Development Opportunities

Employees seek growth and advancement opportunities as part of their career aspirations. Organizations that do not prioritize career development, including training, mentorship, and opportunities for advancement, may find employees leaving to pursue roles that offer clearer paths for professional growth.


Mismatched Job Expectations

During the hiring process, job roles and expectations should be clearly defined and aligned with candidates' skills and career goals. When there is a mismatch between what was promised during recruitment and the actual job responsibilities or organizational culture, employees may become disillusioned and seek positions that better fit their expectations.


Workload and Burnout

Excessive workload, unrealistic deadlines, and a lack of work-life balance contribute to burnout among employees. Burnout not only impacts job satisfaction but also increases the likelihood of turnover as employees seek roles that prioritize well-being and mental health.



Poor Onboarding and Integration

Effective onboarding sets the tone for an employee's experience within an organization. Poorly executed onboarding processes that leave new hires feeling unsupported or confused about their roles and responsibilities can lead to early disillusionment and turnover.


Communication Breakdowns

Effective communication is vital for building trust and transparency within an organization. When communication breakdowns occur, whether between management and staff or among team members, misunderstandings can arise, leading to dissatisfaction and a desire to seek more communicative work environments.


Financial Instability or Uncertainty

Economic uncertainties, financial instability within the organization, or lack of transparency regarding financial health can create unease among employees. Concerns about job security and stability may prompt talented individuals to explore more financially secure opportunities elsewhere.




Throughout the past years, the focus on employee turnover has evolved, with businesses increasingly recognizing the importance of addressing the underlying causes to improve retention and maintain a stable workforce.  

Employee turnover is a multifaceted issue influenced by both visible and hidden factors. By recognizing and addressing these often-overlooked causes, organizations can proactively enhance their retention strategies and create environments where employees feel valued, supported, and motivated to contribute their best. 

Investing in a holistic approach to employee engagement and satisfaction not only reduces turnover but also strengthens organizational resilience and competitiveness in the marketplace.

Reevaluating your current employee benefits package to better align your organization with workforce changes is an important step you might consider.  



Get Ready For An Effective Employee Benefits Program

Benefits renewal time is a great opportunity to revise your current plan. Here’s what you need to know before you renew.