The 3 MMMs: Why Employees Leave Our Company and How We Can Retain Top Talent
When employees leave our company, it’s often not one single factor that drives them to move on. More frequently, it's the combination of elements that culminate in a decision to seek a new opportunity.
Research points to three key factors that contribute to why employees leave: Manager, Money, and Motivation.
These are what I call the 3 MMMs—the reasons many of us see top talent walk out the door. Understanding these MMMs and actively addressing them within our organizations can help us keep the best employees and enhance retention across the board.
1. The Manager: The Catalyst for Departure
One of the most significant reasons why employees leave our company is the relationship with their manager. According to Gallup, approximately 50% of employees leave their job to get away from their boss. A poor relationship with a direct supervisor is often cited as the main reason for leaving, and it's easy to understand why. Managers set the tone for the work environment. They are responsible for providing guidance, feedback, and support. When they fail to do so, employees may feel undervalued or unmotivated.
What We Can Do:
It’s clear that leadership plays the pivotal role in retention. We must prioritize leadership development within our companies. Ensuring managers are equipped with the right skills—such as effective communication, emotional intelligence, and the ability to inspire—can help improve employee satisfaction. Regular feedback from employees about their managers, combined with leadership training, can create more positive, supportive work culture.
2. The Money: Compensation and Benefits Matter
Compensation remains one of the significant drivers for employee retention. While money is not always the sole reason people leave, it often acts as the tipping point. In a survey by Glassdoor, 45% of employees cited salary and compensation as a reason for seeking new job opportunities. In industries with high turnover, like tech or sales, competitive salaries and comprehensive benefits are essential to keeping employees happy and loyal.
Employees who feel their compensation is below market value or unfair compared to peers in similar roles are more likely to explore other opportunities. With the rising costs of living, companies that do not provide fair wages or offer perks like flexible working arrangements may lose employees to competitors who do.
What We Can Do:
Ensuring our compensation packages are competitive is crucial. Regularly benchmarking salaries against industry standards helps ensure we’re not falling behind. Offering attractive benefits such as health insurance, retirement savings options, and bonuses based on performance can also go a long way in keeping employees satisfied. We also make sure we have fun money set aside for our team to surprise them with things that matter to them.
3. The Motivation: Engagement and Purpose Drive Loyalty
While compensation and managerial relationships are vital, motivation and engagement are perhaps the most profound factors influencing whether employees stay or leave. The lack of purpose (not passion) and meaningful work can quickly cause employees to disengage. According to a Gallup report, only 34% of employees in the U.S. are engaged in their work, meaning the majority are not emotionally invested in their roles. This lack of motivation can lead to reduced productivity, lower job satisfaction, and ultimately, attrition.
Employees want to feel they are contributing to something bigger than themselves. When employees believe their work matters and they are aligned with the company’s values, they are more likely to stay long-term.
What We Can Do:
Creating strong organizational culture based on shared values can inspire employees to stay. Involving employees in decision-making processes, providing opportunities for professional development, and recognizing accomplishments fosters a sense of ownership and pride in their work. Additionally, aligning their daily tasks with the company’s mission allows employees to see the tangible impact of their efforts, fueling intrinsic motivation.
Addressing the 3 MMMs to Retain Top Talent
As we reflect on the reasons behind employee departures, it becomes clear that focusing on the 3 MMMs—Manager, Money, and Motivation—is essential for retention. These are the factors we need to actively address and improve within our organizations.
By investing in leadership development, offering competitive compensation packages, and fostering culture of purpose and engagement, we can retain top talent and create the environment where employees feel valued, supported, and motivated. It’s not simply about keeping our employees for the short term—it’s about building the workplace where they want to grow, contribute, and thrive over the long haul.
Together, we can ensure our companies become places where top talent stays and thrives and is THE place to work!