Columns Paul Donkers

Why your best people are leaving

There’s long been a debate about how important money really is to employees. In my experience, it’s wishful thinking to believe it doesn’t matter much. It does. Maybe not for everyone, but for the majority, fair compensation is a baseline requirement.

But here's the nuance: while money matters, it’s rarely the only reason people stay—or leave. In fact, I’ve seen firsthand how inadequate compensation often becomes a demotivator, not a motivator. Once people feel underpaid or unfairly treated, frustration builds. Complaints follow. Trust erodes. And that’s where things go downhill for everyone involved.

In today’s tight labor market, this matters more than ever. I hear it constantly from CEOs and executive teams: “We could grow faster… We could deliver more… If only we had the right people and could keep them.”

If you’re serious about value creation and long-term success, it’s not enough to focus on hiring. You must close the backdoor. Stop the quiet—and costly—talent drain.

Let’s look beyond assumptions and ask: Why are people really leaving?

Recent data highlights the top reasons employees walk out the door. Unsurprisingly, compensation is on the list—but it’s only one factor. The other drivers? They’re often about unmet human needs, not money:

1. Lack of career development

2. Absence of meaningful work

3. Poor leadership

4. Lack of recognition

5. No sense of belonging

Take career growth as an example. Are your managers truly in touch with their teams? Are they offering stretch assignments, mentorship, and real feedback? Are they listening—not just managing?

Or consider meaningful work. Does your company have a clear purpose? Do your people understand how their daily efforts connect to it? This isn't fluff. It’s fuel—especially for younger generations, who crave impact and alignment. If your purpose isn’t visible and magnetic, you risk losing the very people who care most.

So yes, pay fairly. But don’t assume compensation alone will buy loyalty. What keeps great people engaged is growth, challenge, purpose, and a culture of trust.

Invest in leadership development. Offer executive coaching. Reignite the connection between your strategy and your company’s purpose. These actions don’t just retain talent—they build value.

Pay enough so money isn’t the reason people leave. Then focus your energy where it really counts.

Hope this gives you food for thought.

Paul Donkers

Paul P.J. Donkers is a global business coach and consultant. He and his partners work with leadership teams to unlock growth and value.

Find out more at www.tencompany.org or www.ikigaicoachinginstitute.com.

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