Best-in-Class Companies: Why Are Great Employees Leaving?

Best-in-class companies are known for attracting and retaining quality employees, yet even these industry leaders face challenges in keeping their top talent. What separates a truly exceptional company from the rest when it comes to hiring and retention?

Understanding Employee Turnover in Best Companies

A recent survey from Adecco’s The Definitive Guide to Building a Better Workforce reveals that best-in-class companies continue to excel by reducing time-to-hire, increasing revenue per full-time equivalent, and maintaining lower turnover rates among new hires in their first 12 months. However, despite these successes, these top companies are not immune to the persistent trend of job-hopping.

The Rise of Job-Hopping: Why Employees Are Leaving

Job-hopping remains a growing phenomenon, with employees increasingly confident in leaving their current roles for better opportunities. LinkedIn’s latest Global Job Seeker Trends report indicates that job-seeker activity continues to rise, driven largely by concerns over career advancement and dissatisfaction with management or leadership. This trend has seen a notable increase in active job seekers, making it essential for companies to offer clear career paths and ensure that their management teams align with employee expectations.

To retain top talent, companies need to prioritize career development and ensure that their leadership teams meet employee expectations. One-on-one meetings and feedback surveys can help identify any disconnect between leadership and employees, improving both engagement and retention.

Closing the Skills Gap: A Key to Retention

Best-in-class companies remain proactive in addressing the skills gap within their workforce. According to the latest Adecco report, these companies are 31% more likely to increase hiring in response to skills shortages. They are also 22% more likely than their peers to increase training investments, ensuring employees have the critical skills necessary for their roles. By hiring both permanent and temporary talent to fill these gaps, companies can relieve pressure on existing employees and allow them to perform at their best.

Investing in Continuing Education

Employees seek success in their careers but need the right tools to achieve it. Adecco’s research shows that companies leading in employee retention are significantly more likely to increase their training offerings. This approach ensures employees have the necessary skills to excel, helping them feel more engaged and valued. Companies should actively engage with employees to identify the most beneficial training programs, ensuring development investments are well-targeted.

Aligning Employees with Your Mission

A strong mission statement can significantly impact employee retention. LinkedIn’s survey found that nearly half of job seekers joined smaller organizations because they believed they could make a more significant impact. To improve retention, companies should actively communicate their mission statement to employees, emphasizing the value each person brings to the organization’s goals.

By understanding and addressing the reasons why great employees are leaving, companies can take proactive steps to enhance their retention strategies and maintain a motivated, engaged workforce.