Top 6 reasons why an employee leaves the company


An employee does not take decision of leaving an organization in one day. When an employee decides to leave the organization, it has a reason behind the same and this reason develops in a period of time.

Although there are certain reasons which are not in control of employer. Such reasons are relocation to a different state due to personal reason, employee going for higher studies, health problems etc. But most of the time, reasons for leaving is under control of employer. We will discuss about those reasons only.

In most of the exit interviews, we could not actually able to find real reason of employee’s exit.  In some cases, we know the reason. This is because most of the employees are not open during their exit interviews. They do not want to say anything negative about organization and don’t give real reason of leaving.

Let’s discuss top 6 reasons which make an employee leave.

Relationship with Manager

This is the biggest reason of an employee leaving the organization. If the relationship with manager is not good then it can lead to many problems between both. This leads to un necessary conflicts and issues which eats productive time of both manager and team member. They spend their day in finding faults in each other.

In such situation, team member is always in stress and could not give its best. Employee’s performance get impacted which de-motivate employee.

Both of them need to interact with each other many a times in a day. If relationship is not normal then these interactions are not healthy and leads to un wanted conflicts.

Poor Job profile

Employee also leaves when job profile is not accepted. Hence it is very important that talent acquisition team should discuss job profile with candidate during the hiring process in detail. Candidate should be clear on what is expected from him and vice versa.

Employee should be given job profile based on his ability and capability. Employer should also ensure that employee should be given new job responsibilities in case employee is more capable. If required, a proper training program should be planned and executed for such employees.

Job profile gives a sense of accomplishment to employee. They feel that their work matters in the growth of the company.


Poor Compensation package

Another reason due to which many employees leave the company.

Employer should ensure that the compensation package paid to an employee should be mapped at two levels-

  • Internal Benchmark : Ensuring that compensation paid to an employees at same level or same kind of work should be close to equal.
  • External Benchmark : Ensuring that compensation paid to an employee should be close to compensation paid by other companies in same Industry.

Also, Employer should distinguish between top performer and others. Compensation package paid to top performance should be on higher end than others. Employer should ensure that there is a mature performance management system to identify performance level of employees.

Company Culture

This is not one of the biggest reasons but does make an impact on employee motivation. Overall company culture is important. Employee pays attention to the kind of HR policies in the company. Company should maintain transparency in the system. Company should treat its employees with respect. Employees should be given chances to grow.

Whether company is conducting employee satisfaction surveys and taking corrective actions based on the result?  Whether the company is organizing get-to-gather and parties?

Employee likes organization which is process oriented, policies are clear and same for all, communication channel should be robust, employees are respected, employees welfare is being taken care of and overall work culture is pleasant to work.

Related link : How to find out what engage an employee?

Reward and Recognition

Most of employee feels that they are contributing toward growth of the organization and their contribution should be recognized and rewarded. But in reality, only 20% of employees are top performers in an organization. Hence it is utmost importance for an organization to have a system in place to identify employees who are performing outstandingly. Such employees should be rewarded else they will leave the organization soon.

To build transparency in the system, each employee should be evaluated and informed about his performance. Regular feedback is the key to avoid dis-satisfaction among employees. Employer should also take suitable action post performance evaluation.

Organization Financial Health

If company is financially not strong, it gives a wrong signal to its employees. Nobody likes to be part of a sinking ship. Organization with poor financial health can not keep its employees motivated. Inability of organization to pay salaries, give increment, spend in growth plan etc worries employee and they decide to quit and be part of organization where they see their growth.

Related link : How to engage an employee in recession times?

Please do share your feedback and any other reason you wish to share with us.


  1. Ankit Kumar November 10, 2014 3:05 pm  Reply

    Dear Sir,

    The reasons stated above are exact reasons due to which employee look forward for a change.

    Its reay nice to see such posts by you as it helps me to know more about such HR functions.

    I am expecting more light on retention merits, means factors through which we can control attrition.


  2. Kuldeep November 11, 2014 4:34 am  Reply

    Good Article , Very Informative and Practical, also give an idea to handle Psycho Managers .

    • govindsinghnegi November 12, 2014 2:15 pm  Reply

      Dear Kuldeep,

      Thanks for your appreciation. Please do spend some time in reading our latest blog on a good manager quality

  3. Preet Bedi November 11, 2014 10:34 am  Reply

    Agreed!! Well know established facts yet sincerely not a lot has been carried out to do the damage control. Understanding and bringing out the issue is not enough, we need to go beyond the discussion forms and ensure that we as HR Managers create a culture where employees can be honest about their exits.

    Having said that I am not advocating the fact that we should consider the feedback or reason provided blindly. One can always have a stats prepared and evaluate the reasons accordingly.

    • govindsinghnegi November 12, 2014 2:17 pm  Reply

      Dear Preet,

      Do agree with you. This is high time that HR fraternity should start taking actions and show its impact on organization culture and growth else we will still be personnel department.

  4. vipan November 12, 2014 11:11 am  Reply

    Really nice example . . .keep it brother. ,

    • govindsinghnegi November 12, 2014 2:17 pm  Reply

      Dear vipan,

      Thanks for your appreciation and encouragement. This will motivate us in writing for such blogs in future.

  5. Upasna November 12, 2014 1:58 pm  Reply

    I have read your blog and i think its great that you’re putting all your years of experience and knowledge to such good use! These topics are very important for organisations. If people can read and follow these, there will be a huge change in work culture and the growth of organisations!

    • govindsinghnegi November 12, 2014 2:18 pm  Reply

      Dear Upasna,

      Thanks for your appreciation and time spent to read this article. Your feedback matters to us.

  6. Lincy November 13, 2014 5:18 am  Reply

    Very good article

    • govindsinghnegi November 13, 2014 2:08 pm  Reply

      Dear Lincy,

      Thanks for your appreciation.

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