The Real Reason Why People are Leaving

When I’m speaking to candidates about salary, more than ever they’re hesitant about even discussing it. They care more about the responsibilities they’ll have, the team they’ll work with, and the culture of the company. The salary conversation almost feels like an afterthought.

But here’s what surprised me: this is a massive shift from just a few years ago.

Look at what’s changed. In 2021, during the Great Resignation, low pay dominated every conversation. Companies were desperate to fill roles, throwing money at problems, and people were jumping ship for 15-20% raises. It was straightforward—more money meant you could deal with almost anything else. But the data tells a completely different story now.

This shift is stark. Low pay dropped from 63% in 2021 to just 20% in 2024-2025. Meanwhile, toxic work environment is now the leading reason people quit (32%), followed closely by poor leadership (29%) and dissatisfaction with their manager (27%). Work-life balance sits at around 21%.

When you group these together, culture, leadership, and wellbeing account for 68% of reasons people leave. That’s four times more than those quitting for better pay.

So, what happened? Initially, the job market cooled when covid kicked off. Wage growth slowed. The easy 15% bump by switching companies almost disappeared. And suddenly, when people couldn’t just job hop for more money, they started asking themselves harder questions: do I actually like showing up here? Does my manager support me? Am I still being challenged? Do I feel like my work matters?

The answers, for many, were no. People aren’t leading with “I need more money.” They’re saying things like:

“Leadership makes decisions that don’t align with what they say they believe.”

“Nobody acknowledges when we do good work.”

“The culture shifted after the restructure.”

“I feel invisible, like I’m just hitting targets instead of actually contributing.”

These aren’t complaints about salary. They’re complaints about how they’re treated on a day-to-day basis. About whether they feel valued. About whether they can trust the people around them.

89% of employers believe employees leave for money. But only 12% actually do. There’s a massive disconnect between what companies think the problem is and what’s actually driving people out the door.

The thing that makes this even more relevant is that it’s not just during boom times. Even when the economy is uncertain and pay should matter more, people are still leaving primarily because of culture and leadership. That tells you something fundamental has shifted about what employees actually value.

People will work if they enjoy working. They’ll work through restructures, tight deadlines, uncertain times—if they trust their manager and feel like their work actually matters. But the moment that breaks, the moment they stop trusting leadership or feel disrespected, they’re looking.

So if you’re still hoping to retain people by throwing more money at the problem, you’re already losing them. Culture isn’t some HR buzzword that lives in a mission statement. It’s whether someone feels supported, whether their manager actually listens, whether wins get recognised. It’s whether people feel like they matter.

That’s what’s actually changed. And companies that haven’t figured it out yet are going to keep losing their best people.

Lewis McMahon, Consultant