COVID-19 was identified in late 2019 and declared a global pandemic in early 2020, disrupting lives, the economy, and the workplace. The pandemic and stimulus checks led to a record number of workers quitting in 2021 and 2022, known as the Great Resignation.
While the labor market has stabilized, concerns about a "Great Resignation 2.0" are growing. In October 2024, 3.3 million people quit their jobs, close to the 2021 average of 3.98 million, according to the U.S. Bureau of Labor Statistics. Despite economic uncertainty, employees are still seeking better opportunities. As recruiters, we’re hearing more candidates express the desire to quit, and we’ve noticed a rise in "job hopping" on resumes.
It’s no secret there is already a massive shortage of skilled trades people. These include Diesel Truck Technicians, Heavy Duty Equipment Mechanics, HVAC Technicians, Installers, Plumbers, Sprinkler Fitters, Fire Alarm Technicians, and Electricians, companies across Canada and the USA are scrambling to find (and keep) top talent.
Despite the shortage of skilled tradespeople and high employee turnover, many companies are pausing hiring or lack plans to replace staff. Common reasons include not having time to source or interview candidates, budget constraints, or slow business. Using a specialized skilled trades recruitment firm, such as Rockstar Recruiting can help alleviate a lot of the stress and time it takes to find qualified candidates and be proactive in your recruitment strategy. Great news for your bottom line and keeping shareholders happy!
So, what’s driving people to leave their jobs? As employers, what can you do to keep your best talent and help them grow? Let’s get into it.
Top Eight Reasons Employees are Leaving & Solutions to Them
While there are any number of reasons employees leave an organization, there are several that are more common than others.
To illustrate, the below graph shows the result of one study where 37% of Americans cite low pay as the major reason for leaving, followed closely by feeling of being disrespected in the workplace (35%), and lack of career advancement opportunities (33%).
In the skilled trades, regardless of industry, we have found these are the top eight reasons your techs are leaving.
Low pay
Low pay is the main reason employees leave for other jobs. No matter their passion, workers expect fair compensation for their skills and experience. To attract and retain talent, your pay should be competitive, ideally higher than market rates. If you're competing with unionized companies, consider offering flexible pay structures or additional incentives like bonuses, PTO, and pension.
SOLUTION: Talk to your network to learn about salaries for similar roles and use salary surveys like Payscale or job postings for guidance, though these can be inaccurate. Consider partnering with an experienced skilled trades recruiter to get accurate pay rate insights and recommendations.
Lack of career advancement opportunities
Another major reason employees are leaving is the lack of career growth opportunities. People want to learn, advance, and develop in their roles. They need to see a clear path forward within the company to feel invested in their future there. This could include ongoing paid training (manufacturer, dealership, leadership, etc.) and apprenticeship opportunities.
SOLUTION: Offer regular paid safety and industry training to keep your techs up-to-date. Provide tuition reimbursement for professional development courses and create a clear plan for unlicensed techs to advance through apprenticeships or licenses. Discuss career goals with employees during performance reviews and show how your company can support their short and long-term growth.
Feeling Disrespected/Bad Manager
A key factor in feeling respected at work is a sense of belonging and recognition. Issues like microaggressions, discrimination, and exclusion can impact how valued employees feel. Studies show employees who feel disrespected or excluded see a 25% drop in performance and are 50% more likely to leave. The saying "employees leave managers, not companies" rings true, as nearly 60% of employees quit because of their boss. Yikes!
SOLUTION: Implement regular team building events. Recognize employee success, such as best attendance, lowest callback, work anniversaries, new license/certification achieved, etc. Provide managers/supervisors with leaderships specific training. Conduct anonymous surveys to gauge employees’ level of happiness, their perceptions of management and where possible, implement change based on the results.
Company Culture
A toxic company culture can severely impact an employee’s experience and reduce the connection, loyalty, and engagement an employee feels towards an organization, leading them to leave. Who can blame them? There is enough stress in the world and people going through personal situations, that unnecessary work-related stress and a toxic work environment, is not what they want or signed up for.
SOLUTION: Create a work environment that values employee input and suggestions. Implement employee recognition programs (e.g., best attendance, customer reviews) and appreciation events (e.g., lunches, social outings). Review policies to prevent discrimination and negative behavior and ensure clear rules against bullying and harassment are outlined. Make sure managers embody company values and promote positive work behaviors.
Lack of Benefits/Pension
Another reason employees are quitting is because of a lack of benefits and pension plans. When a job doesn’t offer good health coverage, retirement savings, or other essential perks (i.e. cell phone, service vehicle to take home, tool allowance, etc.), it can feel like the company isn’t investing in their future. With so many other jobs offering better benefits, it's no surprise employees are looking for opportunities that provide more security and peace of mind.
SOLUTION: To fix the issue of lacking benefits and pension plans, companies can start by offering better health coverage, retirement savings options, and other perks that show they care about their employees' long-term well-being. This could include offering flexible benefits packages or benefits allowance, matching retirement contributions, or even exploring wellness programs to help employees feel more secure and valued. When workers feel like their future is being taken care of, they’re more likely to stick around.
Poor Work-Life Balance
As we moved past the pandemic and into a "new normal," work-life balance became a bigger priority for employees, and tradespeople are no different. Unreasonable work hours, bad schedules, or excessive on-call components play a role in higher turnover rates. People want to find a good balance between their job and personal life so they can feel more in control and less stressed.
SOLUTION: Retain enough staff to manage the workload and engage in proactive recruiting. Stay aware of top candidates to secure talent and strengthen your team. Offer clear, predictable work and on-call schedules to help employees plan their personal lives.
Relocation
A lot of employees end up quitting their jobs simply because they must relocate. Whether it's due to personal reasons, family moves, or just a change in lifestyle, sometimes staying at a job isn't an option when a big move is involved.
SOLUTION: If you have multiple branches, highlight the ease of transferring to other locations when employees relocate. For office roles, offer hybrid or fully remote options, as technology and the pandemic have shown that remote work can be just as productive.
Burnout
Job satisfaction greatly impacts overall life satisfaction, but burnout is rising due to long hours, heavy workloads, and staff shortages. When employees feel overwhelmed and unsupported, they often seek better opportunities elsewhere.
SOLUTION: Ensure you have enough staff and practice proactive recruiting. Encourage employees to use vacation and PTO for rest and to refresh their mind. Regularly review schedules to prevent excessive hours and ensure fair workload distribution. Hold feedback sessions, like during performance reviews, to improve job satisfaction.
Rockstar Recruiting Can Help Build Yor Team
Employees leave for all kinds of reasons, whether it's for better pay, career growth, or work-life balance. At Rockstar Recruiting, we specialize in partnering with businesses to build strong teams by finding the right talent and offering expert advice on competitive compensation packages. Call us today at 1 833-937-3546 to see how we can help you keep your top employees and attract new ones!
