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7 Reasons Why Turnover is Unfavorable Even as an Employer

Lokesh Kumar

October 8, 2025

Do you offer fair pay and your good employees are still resigning?

It is a question that haunts every employee.

The truth is, turnover isn’t just about money; it’s about purpose, leadership, balance, and growth. And when attrition strikes, the cost isn’t only financial; it shakes team morale, slows productivity, and dents your brand reputation.

37% of employees leave their organization because they see little or no career growth.

Before we dive further, let’s understand this pivotal question:

What is Employee Turnover?

Employee turnover refers to the rate at which employees leave an organization within a specified time period. It encompasses both employees leaving, whether voluntarily or by termination. This may be due to poor performance or dissolution of their roles.

As per Economic Times, in the IT/ITeS sector, attrition dropped sharply from 18.7% in 2023 to 10.8% in 2024. This brings a sigh of relief to employers, but the tale is not yet done. 

Employee intent to quit remains strong: a PwC survey found that 28% of workers worldwide said they are likely to change employers within 12 months in 2024, up from 19% in 2022.

Hiring is expensive and losing employees can disrupt organizational workflow. When the turnover goes above and beyond, it indicates low employee morale and poor work culture. 

Here is what a Redditor experienced in their workplace:

Why is Employee Turnover a Turn-Off?

Employee turnover is something organizations struggle with. It signals deeper problems and creates tangible losses.

Here’s why employee turnover is undesirable:

  • Recruiting, onboarding and training new employees is expensive. When there is frequent turnover, you may keep spending money without long-term benefits.
  • When an employee leaves, so do the skills and expertise with them. It takes additional time to train new hires.
  • When employees leave frequently, it lowers other team members’ morale.
  • Job seekers may identify your organization as having a poor work culture.
  • Clients need to accustom themselves to a new point of contact..

7 Main Causes of Employee Turnover and How to Reduce Them?

Here are the main causes of employee turnover and how to combat them:

  1. Lack of direction

When a company isn’t clear on its goal, it embeds a lack of purpose in employees’ roles. For instance, the first question that comes to mind while acquainting new people is - ‘What do you do?’ While the employee may have a definite role, they are underconfident in what they do. 

As per research, employees with a clear role in mind are 49% less susceptible to leaving their jobs. And Robert Walters Talent Trends report says 63% of professionals have left an employer because they “did not feel a click with the leadership team.” It also mentions “empty promises” from management.

If you steer your company in a clear direction, your employees become your brand advocates.

  1. Low remuneration

As per research by LinkedIn, poor wage is the #1 reason why employees leave their jobs. Your competitors poach top-performing employees with financial incentives. And therefore, if your company incentivizes the employee on top scale they can retain their talent. 

To prevent this loss of dedicated talent, find out:

  • What is the market pay for the role?
  • What is the raise for hard-to-fill jobs annually?
  • What is the price for these hot skills in market?
  • Are you providing bonuses to employees on successful project completion?
  1. Frequent burnout

Burnout happens when employees have more on their plates than they can handle. When your employees face constant stress and work at a stretch, it leads to fatigue. This is a combination of emotional and physical tiredness. Employees may feel helpless and overburdened at their workplace, which causes them to pursue roles with work-life balance.

To avoid burnout, ask your employees:

  • If their deadline is manageable, or do they feel rushed?
  • Is there some task that can be delegated?
  • Do they have all the resources they need to do their jobs effectively?
  • Do they feel supported by their managers?
  • Are they able to disconnect from work after job time?
  • Do they feel valued and recognized?

Workers who say they’re burned out are nearly 3× more likely to be actively looking for another job (45%) compared to those who are not burned out (16%).

  1. Toxic managers

Managers who want to steal the limelight burden their employees with unrealistic goals.

For instance, a task is completed within stipulated timeline, saving cost of the client. The manager hogs the spotlight by stealing team’s credit and contributions. The other way around, the manager refuses to admit they are wrong, leading to degraded team morale. 

A few ways toxic managers act are:

  • They lack direction. One day they say something, the next day something else.
  • They are control freaks and micromanage their subordinates.
  • They constantly bully their team in front of peers.
  • They avoid personal interaction.

The company must single out these managers and take remediation measures.

  1. No feedback or reward programs

Employees feel they are not getting proper feedback for their roles. Feedback doesn’t need to be positive; sometimes, it’s constructive criticism that helps employees thrive in their roles. 

The feedback needn’t be from the manager. It can be peer-to-peer, where employees share how they feel supported by each other and how to help an employee have a team-player spirit.

  1. Poor work-life balance

Work-life balance happens to be among top reasons why employees leave their jobs. Blurring the lines between work and personal life is a major turnoff in current scenarios. Based on research, 48% employees said they would leave a job if it prevented them from enjoying their life.

77% employees experienced greater job satisfaction with remote job options. This reinstates that healthier employees are more engaged, less likely to take sick leaves and more committed to the company.

  1. Zero growth curve in current role

A culture of employee upskilling is a major part of preventing turnover. Offer continuing education and upskilling reimbursement to encourage employees to grow in their roles. 

Ask them:

  • What upskilling or training programs are in place?

  • Are managers actively encouraging them to learn new skills?

  • Do they have access to mentors or role models within the company?

  • Is there regular feedback to help employees improve?

  • How many employees move internally vs. leave for external opportunities?

  • Are they challenged in their roles, or do they feel stagnant?

  • What steps can you take when employees express interest in exploring new responsibilities?

How we360.ai Helps in Lowering Employee Turnover?

We360.ai is a workforce analytics tool that monitors the productivity of employees. It prevents employee turnover by:

  • Early detection of burnout by patterns like idle time, reduced activity, overwork or complete disengagement.
  • Monitor which employee is overburdened and which are underutilized. This helps delegate tasks fairly.
  • Employee performance is backed by data, reducing bias and unfair treatment.
  • Highlight where employees feel stuck and help them overcome bottlenecks.
  • Analytics revealing which employees need upskilling or new challenges.

HR teams can use workforce analytics dashboards to identify patterns: Which departments or roles have higher turnover risk and why?

In case you want to prevent turnover as an employer, let’s walk you through how we360.ai helps. Book your free we360.ai demo now!

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