The 8 core reasons that professionals quit and move on
We are speeding towards the last quarter of the year and attention will soon turn to end of year appraisals, bonus conversations and planning for next year. We know that it’s a time when people quit for new jobs with new firms. Management teams will have to go out and hire to replace those that they have lost to the competition. Drawing on my work with my coaching clients over the last 20+ years, in my experience, here are the main reasons why people quit their firm for pastures new:
Not recognised and acknowledged | This is possibly the number one reason, as per both my own experience as a coach and according to several studies. Being recognised for good work, and achieving results both publicly and privately, is more important than you might have thought. That recognition allows someone to feel that their contribution matters and is making a difference for the benefit of the team, the boss, the firm and for the end users. Take away that feedback and one might as well be working in a vacuum where your efforts matter not a jot. Being part of something bigger and making a meaningful contribution become essential in that light. (see also: Engagement below).
Lack of Progress | Having a sense that you are moving forward and getting better at what you do, having more impact on the business, and getting promoted are all key motivators for high-achieving professionals. Much of this could be alleviated if the leadership took the time to discuss the ambitions and future career vision that an individual held and then created a realistic and credible plan to make those ambitions become a reality. However, that isn’t always the reality that professionals experience. If they feel left behind, they begin to consider new options.
Another factor that fits here is the idea that many professionals will compare themselves to their peer group. They will keep a keen eye on how well either people that they were at university with or former colleagues are doing. Are they getting paid better than me? Did they get picked for VP, MD, Partner at the first opportunity? Am I behind, ahead or doing as well? The fear of falling behind - ‘FOFB’ - will drive professionals to question why that is and if they conclude that it’s their present firm, then they may decide to look for options.
People | If a professional is simply not getting on with a boss or their colleagues to the extent that it’s causing stress or unhappiness, they then might want to move to a more benign environment. Working with positive, upbeat colleagues who share your values and work ethic is clearly the desired state for most people. Equally, having a direct report who knows how to manage and lead, and who has your best interests in mind, is very important too.
Lack of balance and WFH flexibility | Given all that we went through during the Covid pandemic, most people have adopted a more flexible work schedule that typically involves the ability to work from home at least some of the time. Clearly, this isn’t possible for all financial professionals depending on their specific role, but for the most part, it is. So some people cite the lack of work flexibility as a reason that they want to move on. This may also extend to the notion of work / life balance. This concept has a number of definitions but we can think of it as manageable hours, amongst some other things. Financial services professionals are required to work long hours and we can also recognise that there does come a point when those hours become unhealthy and unsustainable. Thus, having a management team that staffs deals / projects, etc. with the right number of professionals is something that employees will appreciate. If not, they might consider quitting for somewhere that does.
Lack of engagement | By engagement, we mean that the employees have an emotional commitment to the team and the firm. They believe in what they are doing - their purpose. It’s important and they feel a sense of drive to perform for that firm and derive a sense of fulfilment having done so. I’d offer that it’s difficult to turn around a firm, department or team that lacks emotional commitment from employees. If that is achieved, it will most definitely help significantly reduce turnover.
Reaching a certain age | Perhaps a less recognised reason for professionals to quit and move on is the approach and arrival at certain age milestones. Getting to an age that ends in a zero, especially 40 and 50, causes many professionals to reflect on their lives and their careers. We call this realigning their lives, values and ambitions to build better and more fulfilling careers. This is a process that should be done on a frequent basis so that you feel that, having done that thinking and perhaps course correcting, you are on course for what you want and that you are living with purpose. That said, getting to a certain age can certainly trigger the need to make changes.
Negative changes at work | If the firm changes up the leadership team, changes strategy, or decides to make an acquisition, then this might represent opportunities and improvements. On the other hand, it might been change for the worse. If employees see that senior and well respected managers are leaving, that might be a signal that all is not well and it might be time to both understand what is going on and consider quitting the enterprise ahead of the mass exodus.
Underpaid | Pay is, no doubt, an important factor in why professionals move on. In my 22 years in Financial Services Executive Search, it was rarely the key reason for someone to consider a move. That said, pay is a reflection of how well that person is appreciated by the firm. The individual should feel that there is some correlation, no matter how tenuous, between achievement and reward. It’s also important for the professional to have a reasonable idea of what someone with their capabilities can command in the market so that they know they are being paid fairly. Should this not be the case, then quitting starts to become a good idea.
Closing thoughts
We hope you found this a useful insight into the varied reasons that professionals give when they are asked why they want to leave and move on to a new firm. If any of these resonate and you find yourself considering changing roles, get in touch. We might be able to help you make a move that allows you to better align your job with your vision, values and ambitions.