7 Reasons Why Good Employees can Quit your Startups

Disruptive ideas of young startup founders may work wonders but its equally important to have right people in your startup. Most Important factor that plays role in success of a startup is Team. 

Its quite hard to find a good employee at a startup and its more difficult to keep them happy while working. There are a number of ways to keep your best people, but no silver bullet. As you think through your own retention strategy.

So, here we tried to find out main reasons why good employees leave startup job.

  1. You do not care about them after Hiring:  

Many of employees leaves the job because their managers/boss do not really care about them after some time. You must personally involve with employees so they feel engaged and connected with organisation.

 They don’t care about their employees.

Rudeness, assigning blame, back-biting, playing favorites and retaliations are among reasons that aggravate employee turnover. Feeling resentful and mistreated is not an enticement for a good work environment.

So start caring about most valuable asset of your organisation.

2. They can not work as much as founders:

When you start something, you put everything in it – your Money, resources and most importantly time. I have heard about founders working 18 hrs a day in early stages.

Yes that’s ok to do as you are trying to make your dreams successful but the employee you hired are not entitled to do the same.

Work-life imbalance

They joined startup to learn things, work with creativity not for working 12-15 hrs daily like you.

In startups new challenges can result in longer hours and weekend work. So, as a founder of startup, you must understand that employees have both personal life and a work life and most of the young people want to live it balanced. So, do not demand too much from your employee.

A research from Stanford shows that productivity per hour declines sharply when the workweek exceeds 50 hours, and productivity drops off so much after 55 hours that you don’t get anything out of working more.

3. Give them Space to be creative:  

One of the reason why people come to join startup rather than a big organisation is that they want be creative and learn new things.

They want to improve the things within your startup with their creative approach and at this stage if you are not allowing them to do so then they will not find it useful place for them.

Give them space to Improve

Allow them to fly in their area with creativity, tell them the limits but do not restrict their creativity.

Startups need employees to have ownership and be empowered! Empowered employees have the freedom to make suggestions and decisions. Today “empowerment” seems to be a catch-all term for many ideas about employee authority and responsibility. However, as a broad definition, it means an startup gives employees latitude to do their jobs by placing trust in them. Employees, in turn, accept that responsibility and embrace that trust with enthusiasm and pride of ownership.

4. There is no opportunity to develop Skills: 

No matter how talented the employee is they still expect to develop new skills from the startup they are working in.

When you have a talented employee, it’s up to you to keep finding areas in which they can improve to expand their skill set. The most talented employees want feedback—more so than the less talented ones—and it’s your job to keep it coming. If you don’t, your best people will grow bored and complacent.

There is no opportunity to develop Skills:

A lot of good talent can be lost if the employees feel trapped in dead-end positions. Often talented individuals are forced to job-hop from one company to another in order to learn new skills. The most successful startups find ways to help employees develop new skills and responsibilities in their current positions and position them for future advancement within the enterprise.

5. Faith and confidence shaken in Startup: 

When employees are asked to do more and more, they see less evidence that they will ultimately share in the fruits of their labor. When revenues and profits increase along with workload, organizations should take another look at their overall compensation packages.

faith in company

Employees know when a company is doing well, and they expect to be considered as critical enablers of that success. Organizations need to stop talking about employees being their most important asset while treating them as consumables or something less than valuable.

If an organization wants empowered employees putting out quality products at a pace that meets customer demand, they need to demonstrate appreciation through actions.

6. Do not have a reward policy for good work

Everyone likes kudos, none more so than those who work hard and give their all. startups founders need to communicate with their people to find out what makes them feel good (for some, it’s a raise; for others, it’s public recognition) and then to reward them for a job well done.

Do not have a reward policy for good work

Studies have shown that money isn’t usually the primary reason people leave an organization, but it does rank high when an employee can find a job earning 20 to 25 percent more elsewhere. So you must keep some reward system in place.


7. People do not leave Organisations, They leave Managers

Startups must first understand the main reasons employees leave for other positions. Good people don’t leave good organisations—they leave poor managers!

rude managers

As a founder you must keep eye on the managers – how they treating employees. It may harm your startup and the impact, however, is not only financial; it also adversely affects employee morale. Although hard to quantify, poor morale results in a domino effect that negatively impacts efficiency and effectiveness.

Startups lack funds for great office space at prime locations, so It’s highly Important that you provide a safe and better work space to your employees. Keep an eye on your managers to make sure that they are not misusing their position. 


we can spend time arguing whether these are the most important reasons good employees quit…or we can find ways to entice them to stay! Look forward to see your comments on this.


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