In today’s dynamic job market, understanding the reasons for leaving a job is crucial for both employees and employers. While financial stability is often a key factor in job satisfaction, even high-paying positions in Singapore’s competitive landscape aren’t immune to turnover.
Recent studies highlight the prevalence of job changes. In 2022, McKinsey and Co. reported that nearly 40% of people considered leaving their jobs in the coming months. During the Great Resignation of 2021, 18% of middle-income and 11% of upper-income employees decided to quit – interestingly, insufficient pay wasn’t the top reason cited.
Job satisfaction encompasses various factors beyond salary, including a sense of accomplishment, positive workplace relationships, growth opportunities, work-life balance, and alignment with organizational culture. Let’s delve into the top reasons for leaving a job, with insights from Singapore’s high-paying sectors.
Table of Contents
Why Do People Leave Their Well-Paying Jobs in Singapore?
1. Lack of Career Advancement Opportunities
For some with strong aspirations for career growth, the availability of prospects is crucial for them. People seek better opportunities such as upskilling, entrepreneurship, work-life balance, and exploring diverse industries for professional growth and fulfilment.
In 2022, it was found that 64% of employees consider career advancement opportunities as the most critical factor when considering a job offer or staying in their current role. However, only 37% of employers have a formal career development program in place, leaving many employees feeling frustrated and stuck in their current roles.
Companies like Microsoft and Deloitte are known for their comprehensive career development programs. These programs typically include mentoring, training workshops, skill-building initiatives, and opportunities for internal mobility to enable employees’ professional growth and advancement.
Trust Recruit offers meaningful job opportunities that address the risk of turnover caused by a lack of structured career development, providing employees with better alternatives.
2. Poor Work-life Balance
Employees experience burnout or feel frustrated by the lack of time for personal activities because of long work hours. Poor work-life balance can lead to high levels of stress as well as physical or mental health issues in the workplace. This leads to job dissatisfaction and leaving their jobs—it all comes down to prioritising themselves or their pay.
According to the Ministry of Manpower, the average workweek for Singaporeans is around 44 hours, with 1 in 4 employees working more than 48 hours a week. While the National Sleep Foundation recommends at least 7 hours of sleep each night, only 27% of Singaporeans reach that ideal.
In comparison, the US has an average workweek of around 34.4 hours for full-time employees, while Australia enjoys one of the shortest average workweeks globally at around 32 hours. This year’s United Nations’ World Happiness Report ranked the US at 15th place, and Australia at 12th place.
Thus, it’s important for employers to take steps to improve the work-life balance of their employees. This can include implementing flexible work arrangements, such as telecommuting and flextime, and providing paid time off.
Also Read: Mental Health in the Workplace: Factors, Impact & How to Improve
3. Inadequate Compensation and Benefits
High-paying jobs don’t necessarily come with the best compensation and benefits. Employers who fail to provide what their employees need may struggle to retain their top talent, leading to high turnover rates and increased recruitment costs.
To satisfy employees, it’s best to provide competitive salaries and benefits packages. Offering benefits such as bonuses, stock options, health insurance, parental leave, or flexible work arrangements can help employers retain their top talent. It’s best to find a job that meets one’s financial and lifestyle needs.
Some companies go beyond the conventional offerings to provide unique and appealing packages:
- Google – Employee perks include free meals, on-site gyms, laundry services, and even on-site medical staff. They also offer generous parental leave of 24 weeks, financial assistance for adoption, and bereavement benefits that provide financial support to an employee’s family.
- Netflix – Netflix is known for its unlimited vacation policy, allowing employees to take time off whenever needed. They also provide a generous parental leave policy, offering up to one year of paid leave for both mothers and fathers following the birth or adoption of a child.
- Airbnb – Airbnb provides its employees with an annual stipend of $2,000 to travel and stay in any Airbnb listing worldwide. This encourages employees to experience the company’s services firsthand and fosters a culture of exploration and adventure.
Also Read: 10 Know-How to Negotiate A Higher Salary During An Interview!
4. Toxic Workplace Culture
A healthy work environment is essential not only to productivity but to employee satisfaction as well. Toxic workplace culture can manifest in various ways, such as verbal abuse, harassment, discrimination, or even micromanagement.
Studies have shown that more than half of the workforce has experienced workplace bullying, and 1 in 4 employees has experienced discrimination in the workplace. This led to decreased productivity and performance, increased absenteeism, and higher turnover rates.
Uber CEO, Travis Kalanick, was forced to resign after a series of scandals, including allegations of sexual harassment and discrimination. On the other hand, Amazon was accused of creating a “dehumanising” work environment for its warehouse employees. Reports included high-pressure quotas, long hours, and dangerous working conditions.
Therefore, it is essential for organisations to create a healthy and positive workplace culture through these three key methods:
- Foster a culture of open communication and collaboration.
- Encourage mutual respect and appreciation among team members.
- Provide opportunities for professional development and growth.
Also Read: 5 Effective Tips for Managing Employee Conflicts in the Workplace
5. Ineffective Leadership and Support
Slack’s research linked poor leadership and decreased employee morale and productivity. Only half of the professionals said they felt inspired by their leaders, and the same number found their leaders “stuck in their ways of working.”
Ineffective or unsupportive leadership can take many forms:
- Lack of communication.
- Micromanagement.
- Bad business practices.
- Failure to provide necessary resources and support.
Employees may be disengaged from their work and look for opportunities elsewhere.
In 2021, Better.com, a mortgage lender, laid off 900 employees in a video call that was widely criticised for its tone and lack of empathy. The company’s CEO, Vishal Garg, was forced to apologise and eventually stepped down. In the days following the video call, the company’s stock price fell by more than 20%.
Additionally, employers who want to avoid confrontation may resolve to “quiet quitting,” which is strongly linked to poor leadership. It refers to employees disengaging and seeking new opportunities without overtly expressing dissatisfaction, highlighting the importance of addressing leadership issues to maintain a motivated workforce.
Conclusion
Whether it’s the lack of career advancement opportunities, poor work-life balance, inadequate compensation and benefits, toxic workplace culture, or unsupportive leadership, these factors can prompt employees to seek new horizons.
Understanding the reasons behind employee resignations allows employers to address these concerns and create a positive and supportive work environment, fostering employee satisfaction, engagement, and long-term retention.
Let one of the recruitment agency in Singapore help you find a job that aligns with your career goals and aspirations. Contact us today.