While encouraging employee retention is important, knowing why employees leave is even more important to developing an effective retention strategy. Offboarding, the process of terminating the employment of a departing employee, is just as important as onboarding. Offboarding not only helps to encourage a smooth separation, ensure knowledge transfer, and protect company assets and data, it also helps companies know why employees leave and what they can do to retain them in the future.
An important part of the termination process is the exit interview, allowing employers to understand why an employee is leaving. Especially since the COVID-19 pandemic, some of the most common reasons include:
- Inadequate salary or hourly wage
- Feeling overworked, burned out, and unsupported
- Limited or no room for growth and career advancement
- The need for a better work-life balance
- Dissatisfied with management and corporate culture
- More attractive job opportunities
Herzberg's Two-Factor Theory
American psychologist Frederick Herzberg, perhaps best known for his work in management, is famous for proposing his “motivator-hygiene” theory, sometimes also known as the “two-factor” theory, which states that two sets of factors influence motivation in the workplace and can either enhance employee satisfaction (and thus encourage employee retention) or hinder it.
Hygiene factors refer to the factors that actually motivate employees in the workplace. Herzberg's hygiene factors are the factors that satisfy the physiological needs that each employee expects to be fulfilled. These factors focus on money, job security, good working relationships, good working conditions, etc. Without these basic hygiene factors, employees will not be satisfied and no matter how many motivating factors you have, you will not be able to retain them with your company.
Motivational factors, on the other hand, depend on the conditions of the job itself. These are the factors that motivate employees to perform better and increase their commitment to the company and their job. These factors focus on growth opportunities, professional development or promotion, recognition, greater responsibility, etc.
