8 reasons why you’re losing employees — and how to keep them.

Understanding why you're losing employees has never been more critical, especially as Canadian workers face mounting pressures from rising living costs. According to the 2024 Randstad Employer Brand Research report, 44 percent of workers consider insufficient compensation their top reason for seeking new opportunities.

The challenge is particularly acute for IT workers and technical professionals, who often weigh competitive offers against their current positions. While workplace culture and management remain significant factors, our research reveals a stark reality: barely half of Canadian employees feel their current employer meets their salary expectations.

For new hires and seasoned staff alike, the gap between expectations and reality can quickly erode their connection to your company vision. Organizations need to understand what drives employee departures — and, more importantly, how to prevent them. Here are eight key reasons your top talent might be heading for the exit.

1. uncompetitive compensation

The numbers don't lie: compensation is the main reason Canadian workers leave their jobs. This trend hits certain groups especially hard, with women (48%) more likely than men (40%) to leave due to compensation concerns. When employees feel underpaid, they're not just financially stressed — they're also more likely to feel undervalued and disengaged. This creates a cycle where your most talented team members start looking elsewhere.

The cost of replacing these workers often outweighs what it would have cost to pay them fairly in the first place. Training expenses, lost productivity and recruitment costs can add up quickly.

Smart organizations are getting ahead of this issue by conducting regular compensation reviews and adjusting salaries proactively rather than reactively. Use resources like the Randstad Salary Guide to benchmark your compensation against industry standards. If budget constraints make immediate raises impossible, consider creating a clear timeline for compensation reviews and being upfront about how employees can progress to higher pay bands.

2. bad management

The ripple effects of bad management can transform a dream job into a daily struggle. Recent research by the UK's Chartered Management Institute reveals a fundamental problem: one in three workers have quit their roles due to toxic workplace culture. What’s more, half of those who view their managers as ineffective plan to leave within a year.

Bad management wears many faces. It might show up as a lack of leadership, excessive micromanaging, belittling behaviour or inappropriate conduct. What's consistent is the impact: poor managers poison otherwise productive environments and drive away talented staff. When employees feel unsupported or undermined by their boss, their motivation and job satisfaction plummet. The old saying rings true — people quit bosses, not companies.

To protect your workplace culture and retain valuable team members, take time to vet leadership candidates thoroughly. Look beyond technical skills to assess emotional intelligence and leadership philosophy. Your managers need to align with both your organizational goals and your employees' needs for growth and support.

3. misaligned company culture

Understanding why you're losing employees often comes down to cultural fit. While it might seem secondary to job duties and compensation, company culture plays a crucial role in employee satisfaction. Full-time workers spend most of their waking hours at work, making cultural alignment a make-or-break factor in their decision to stay or leave.

This matters particularly for younger workers, who often prioritize working in an environment that reflects their values. When employees don't connect with their coworkers or feel at odds with company values, they rarely stay long. The solution starts with transparency in your recruitment process. Be clear about your organization's culture and values from the first interview. There's little value in attracting talent with promises that don't match reality. When the mask slips, even well-trained employees will seek opportunities elsewhere.

4. overwhelming workplace stress

Work-related stress wreaks havoc on physical and mental health, from disrupted sleep to persistent fatigue. For many employees, these pressures spill beyond office hours into personal life. Work has become the leading source of stress, stemming from heavy workloads, long hours, high-pressure targets and workplace harassment.

According to Randstad's research, work-life balance ranks as the second most important factor for Canadian workers choosing an employer. Yet there's a clear gap between expectations and reality—while employees prioritize balance, many organizations struggle to deliver it. As an employer, creating a supportive, inclusive environment isn't optional. Set clear boundaries around working hours, ensure workloads are manageable and establish safe channels for employees to raise concerns without fear of consequences. When workers feel heard and protected, they're more likely to stick around.

5. lack of fairness and respect

One primary reason why you're losing employees is simple: nothing pushes workers out faster than feeling they aren't treated fairly. While organizational hierarchies and rules are necessary, they must be applied consistently across all levels — including management.

Unless specific policies explicitly differentiate between roles, everyone should follow the same rules, regardless of their position. Double standards and “do as I say, not as I do” leadership breeds contempt and erodes trust. Leaders who exempt themselves from company policies damage morale, while those who model compliance build respect. Make sure expectations are clear and achievable, and create space for employee feedback, even if you can't implement every suggestion.

6. disconnection from meaningful work

When employees can't see how their work matters, there's a good chance they'll start updating their resumes. Staff who view their role as unimportant or disconnected from a larger purpose often disengage, particularly those in specialized positions who focus on single tasks. Smart leaders make connecting daily work to company priorities a top concern, helping every team member understand their impact.

Create regular opportunities for skill development and honest dialogue about job satisfaction. When employees feel safe voicing concerns about their work without fear of backlash, you can address issues before they become dealbreakers. But if workers face criticism for sharing their thoughts, you might not discover their unhappiness until they hand in their resignation.

7. lack of autonomy

Understanding why you're losing employees often traces back to micromanagement. We all want some control over our career path, from choosing projects to making decisions to influencing goals. When employees are free to make choices — and yes, occasional mistakes — they take ownership of their work and develop innovative solutions.

Think of managers as guides rather than controllers. Your team members are specialists in their roles and should be trusted to work independently, turning to leadership only when facing obstacles or sharing ideas. This trust builds confidence and job satisfaction. When employees feel constantly monitored and restricted, they'll likely start searching for workplaces that value their judgment and expertise.

8. no opportunities to advance

Even in smaller organizations or in specialized roles, employees need to see a path forward. As workers build skills and expertise, they naturally seek opportunities to step into senior or leadership positions. Organizations with clear promotion pathways tend to maintain stronger, more engaged teams.

Another key reason why you're losing employees? They feel trapped in roles that don't align with their career goals. If your company offers cross-training or lateral moves, communicate these options clearly. When staff know they can explore different paths within your organization rather than leaving for growth elsewhere, they're more likely to stay and contribute their expanding skillset to your team.

take action now

Are your top performers heading for the exits? It's time to look inward and examine how your employer brand measures up — not just in compensation but across all these key factors that influence retention.

Your people shape your reputation as an employer. Give them the resources, support and recognition they need to thrive, and you'll build a resilient team that stays and grows with your organization.