Thursday, January 29, 2009

Why employees leave company?

This idea came after a heated argument with one of my friend about why employees leave a company. This I am writing from my own experience and observation.
What I feel is that employees leave an organisation due to various reasons but can be broadly classified into these four....
1) Money: It may be salary or incentives. If an employee feels that he is not getting what he is supposed to get( comparable from market and competitors) and he feels that he is exploited. He may be paid 10k or 100k per month but he must feel that he is paid the best according to his abilities otherwise it will not work out.
2) Growth: Career growth is what all employees look. If one's career prospects is not fulfilled in a particular company then he will look out.
3) Mental balance: In this I mean to say whether he is able to handle the pressure, time spent with his near and dear ones, time to do other activities that he likes to do apart from his normal office duties. One can call it as work-family imbalance and it has huge repercussions.
4) Environment: If the above factors are not there but his working environment is good, he will surely wait for some more time before leaving. By environment I mean his immediate boss, his colleagues, and distance to and from his office. If his working environment is not good and any one of the above is also not fulfilled then he is sure to leave. I have included the distance mainly due to the shifting of companies outside the city area as well as people residing outside city limits due to costs. It consumes a lot of time and makes you tired.
Now apart from these also some will not leave, and the reason is that he does not want to take risk by moving out into another company or that he is unable to get a new job.
These factors will also make a company good or bad in terms of working conditions.