Employee turnover is expensive—costing companies anywhere from 50% to 200% of an employee’s annual salary in recruitment, training, lost productivity, and knowledge drain. Yet people keep leaving, often for reasons that are entirely preventable with better leadership, communication, and workplace culture.
Table of Contents
Here are 7 of the most common and well-documented reasons employees quit, backed by data from Gallup, SHRM, LinkedIn, McKinsey, and large-scale exit surveys (2024–2026).
1. Poor Management / Bad Boss
This is consistently the #1 reason people leave across virtually every industry and demographic.
A toxic, micromanaging, unsupportive, or emotionally unintelligent manager destroys engagement faster than any other factor. Gallup’s long-running research shows that people leave managers, not companies. When employees say “I love my job but hate my boss,” they usually leave within 6–12 months.
2. Lack of Career Growth & Development Opportunities
Employees—especially Millennials and Gen Z—will tolerate a lot if they see a clear path forward.
When promotions feel impossible, skill-building is ignored, or “stretch assignments” never come, people start job-hunting. LinkedIn’s 2025 Workforce Confidence Index found that lack of growth opportunities was the top reason people were actively looking for new roles.
3. Low Pay or Uncompetitive Compensation
Money isn’t everything—but it’s a lot.
When pay falls significantly below market rate, or when raises don’t keep up with inflation and cost of living, resentment builds fast. PayScale and Glassdoor data show that inadequate compensation ranks in the top 3 exit reasons almost every year, especially in high-cost cities like New York, San Francisco, and Boston.
4. Poor Work-Life Balance & Burnout
Unrealistic workloads, constant after-hours emails, no real PTO usage, and “always-on” expectations drive people out.
Gallup’s 2025 State of the Global Workplace report found that burnout symptoms are at near-record levels, and employees with poor work-life balance are 2.5× more likely to quit within the next year.
5. Toxic Work Culture or Lack of Respect
Bullying, gossip, favoritism, discrimination, lack of psychological safety, or “performative inclusivity” without real change push people to the exit.
SHRM’s 2025 Employee Job Satisfaction & Engagement Survey showed that toxic culture was the #2 reason for voluntary turnover, behind only bad management.
6. Feeling Undervalued or Unrecognized
Employees don’t just want a paycheck—they want to know their work matters.
When effort goes unnoticed, achievements are ignored, or there’s no meaningful recognition (verbal praise, bonuses, shout-outs, career conversations), disengagement sets in fast. Gallup data consistently shows that employees who do not feel recognized are 2–3× more likely to leave within 12 months.
7. Better Opportunity Elsewhere
Sometimes it’s not that the current job is terrible—it’s that someone else offered more money, better benefits, remote flexibility, a promotion, meaningful work, stronger company values, shorter commute, or simply a fresh start.
LinkedIn’s 2026 Workplace Learning Report found that “better opportunity” (higher pay + growth + culture fit) accounts for nearly 40% of voluntary exits when the economy is competitive.
Quick Summary Table – Top Reasons Employees Leave (2025–2026 Data)
| Rank | Reason | % of Voluntary Exits (approx.) | Key Source(s) |
|---|---|---|---|
| 1 | Bad manager / poor leadership | 50–75% | Gallup, SHRM |
| 2 | Lack of career growth | 35–50% | LinkedIn, McKinsey |
| 3 | Inadequate pay / benefits | 30–45% | PayScale, Glassdoor |
| 4 | Burnout / poor work-life balance | 25–40% | Gallup, Deloitte |
| 5 | Toxic culture / lack of respect | 20–35% | SHRM, Culture Amp |
| 6 | Feeling undervalued / unrecognized | 20–30% | Gallup, Harvard Business Review |
| 7 | Better external opportunity | ~40% (when economy is strong) | LinkedIn Workforce Report |
Key Takeaways for Employers (and Employees)
Most turnover isn’t about “laziness” or “disloyalty.”
It’s usually about basic human needs not being met: fair pay, respect, growth, manageable workload, and a manager who doesn’t make you dread Monday mornings.
For leaders: fix the manager problem first—train, coach, or remove bad leaders. Everything else flows from there.
For employees: if 3+ of these reasons are true at your job, it’s usually time to start looking. Life is too short to stay miserable for a paycheck.
