While the majority of employees who plan to leave their current roles are doing so for higher pay or better benefits, a significant percentage are also changing jobs to escape from toxic workplaces and managers, said Lindsay Coffin, principal research associate at the Conference Board of Canada, during a recent webinar by the organization.
According to a recent survey by the Conference Board, roughly 80 per cent of employees said they changed jobs for higher pay and six in 10 (58 per cent) cited better benefits. However, nearly half said that poor leadership or toxic work environments drove them out the door.
“Not only did it make folks leave, [poor leadership and work environments] were also the top two reasons for employees who were considering leaving,” said Coffin. “This is a really important factor, since when employees are considering leaving, they are less engaged and less productive.”
Read: Pay transparency supports employers’ attraction, retention strategies, employee equity: expert
Employees who left or were considering leaving their job also cited factors such as lack of recognition or appreciation, limited career growth, poor work-life balance and unfair treatment and discrimination. Notably, 83 per cent of employees said good leadership is important to job satisfaction.
“Quite simply, it tells us leadership matters. Leadership can be linked to all of these aspects that contribute to employees leaving.”
Also speaking during the webinar, Diogo Borba, senior research analyst for human capital at the Conference Board of Canada, noted pay increases continue to slightly outpace rising inflation. According to the survey, employers will close this year providing an average increase of 3.4 per cent, while an average increase of 3.2 per cent is predicted for 2026.
In addition to wages, employers are also investing in their benefits offerings as they balance optimizing limited resources and meeting employee expectations. The survey noted roughly a third of organizations said their No. 1 priority for their benefits program is to make it as effective as possible to act as a strategic tool for attraction and retention. Notably, two-fifths (39 per cent) said they’re placing a greater emphasis on benefits communication.
“We know that even strong benefits programs don’t have a lot of impact if employees don’t fully understand or appreciate what’s available to them.”