What really drives employees to stay or quit: stats

 Why do people really leave their jobs? It’s not always about pay. It can also be about factors such as work environment and opportunities for growth. 

Employees stay when they understand their role, feel valued, and see a future. They go when they feel overlooked, disconnected, or stuck.

Here are the key facts and stats behind what drives employee decisions, and whether your best people stick around or start scrolling through LinkedIn.

1. Lack of growth opportunities 

94% of employees would stay longer if their company invested in their careers. - LinkedIn, Global Talent Trends Report 

Career growth consistently outranks salary as a retention driver. When people can’t see a path forward, they create one elsewhere.

Career progression doesn’t always mean promotions. Offer stretch projects, cross-functional exposure, or skill development plans. Even small, visible growth builds loyalty.

2. Clarity drives employee engagement

Only 41% of employees say they know what their company stands for and what makes it different. - Gallup, State of the Global Workplace 2024 

When employees don’t understand how their role fits into the bigger picture, engagement drops fast. Clarity drives purpose; purpose drives retention.

Write clear role charters that link every position to company goals and KPIs. If people see how their work matters, they’re more likely to stay.

3. Recognition 

Employees who feel recognised are 5x more likely to stay. - Gallup Workplace Report 

Nearly two-thirds of employees say they don’t receive enough recognition. Recognition doesn’t have to be financial, it’s about visibility and appreciation.

Swap vague praise for something specific and meaningful. Saying ‘Your report helped us close that client’ carries far more weight. 

4. Leadership trust 

74% of employees expect their CEO to communicate transparently, especially in uncertain times. - Edelman Trust Barometer 2024 

Trust builds stability. When leaders avoid difficult conversations or fail to follow through on promises, employees assume the worst and start looking elsewhere.

Be open about the company’s direction, even when things are tough. Transparency builds confidence. 

5. Toxic cultures 

62% of employees say toxic workplace culture is the top reason they quit. - MIT Sloan Management Review 

Toxicity can mean exclusion, poor communication, micromanagement, or unchecked politics. Once it takes hold, no retention programme can fix it.

Audit culture as rigorously as you audit finances. Anonymous pulse surveys, manager feedback loops, and exit interviews reveal patterns early.

6. Lack of engagement

77% of employees are disengaged globally. - Gallup, State of the Global Workplace 2024

Engagement stems from autonomy and focus, not more hours or perks. Employees who understand priorities and have authority to make decisions are far less likely to burn out.

Swap endless check-ins for clear outcomes. Define what success looks like, then trust your team to deliver it.

7. Ownership changes how people think 

Companies with employee ownership schemes see up to 8–12% higher retention rates compared to non-owned peers. - Employee Ownership Association 

When people share in the value they create, they see their job as a long-term investment, not just a contract.

Use employee share schemes to turn employees into partners. When their success aligns with company success, everyone plays the long game.

8. The early warning signs 

Spotting trouble early can save you from costly turnover. Look for:

• Declining participation in team discussions.
• Missed deadlines or vague accountability.
• Silence during one-to-ones.
• Reduced enthusiasm for long-term projects.

According to Gartner, 80% of employees who plan to leave show visible disengagement within three months. 

Don’t wait for exit interviews to learn what’s broken. Run short, regular check-ins focused on motivation, not metrics.

Key takeaway

Employees stay when they’re trusted, supported, and see a path to grow. 

Building a culture of ownership, recognition, and purpose costs far less than replacing top performers. 

Vestd helps founders and leaders design employee share schemes that align people, boost loyalty, and build long-term value. Find out more here.