By Nick Mann

Most Employees Quit for These Reasons (and What to Do About It)

According to the U.S. Bureau of Labor Statistics, roughly 60% of retail employees quit within the first year. Based on this data, military surplus/outdoor/tactical store owners can expect more than one out of every two employees to be gone before their first year ends. Turnover often results in diminished productivity, fewer sales, and lower morale, which can become a big problem if not properly addressed. In this article, I’m going to take a deep dive into the top reasons why most employees quit, citing credible data, and explain steps that can be taken to keep more employees around for the long haul. 

Lack of career development (41%)

Let me start by saying there are many reasons why employees leave their jobs. Everything from burnout to better job opportunities to having to relocate can all be a factor. And in many cases, there’s more than just one reason. That said, a comprehensive study by McKinsey & Company that surveyed over 13,300 employees narrowed it down to three of the most common reasons across the board. At the top of the list was a lack of career development, with 41% of employees citing this as the main reason they quit. And this makes sense. Most people don’t want to feel like they’re in a “dead-end job” with no realistic chance of career advancement. While they don’t necessarily need to be able to reach a C-level position, it’s nice to know they can at least move up the company ladder to a higher-paying role with more responsibility and leadership. 

Perhaps the best way to offer career development is to promote from within rather than looking to the outside to fill higher positions. Although a small to mid-sized military surplus/outdoor/tactical store won’t likely need extensive leadership roles, it would be wise to promote a qualified, dedicated sales rep to a management role if you believe they have what it takes to thrive. Also, it is important to have built-in mentoring where current leaders provide hands-on help to other team members to build their knowledge and skills. 

Poor compensation (36%)

I was surprised that lack of compensation wasn’t the number one reason for most employees quitting. However, with 36% of workers citing this as a key reason for early turnover, it’s a close second to lack of career development. And it’s completely understandable. While most retail workers probably don’t expect to bring in a huge salary, this stat shows that providing fair compensation and basic benefits is important. “Compensation is important for employee retention because it helps companies avoid the high costs associated with turnover,” PeopleThriver writes. “Competitive compensation packages also help organizations attract and keep top talent and can lead to greater employee satisfaction, making employees more likely to stay.”

Here’s some advice for ensuring your salaries are where they must be. First, perform initial research to see the going rate for each retail position you employ in your specific area. In Michigan, for example, the average annual salary for a retail worker in 2025 was $28,596, according to ZipRecruiter, which translates into $14 per hour. In that case, you would want to get your salary as close to or, if possible, higher than that. Also, be sure to routinely check the salary (at least annually) to see when it increases so you can keep up with the competition. 

Uncaring leadership (34%)

Not far behind poor compensation is uncaring/uninspiring leadership. This can manifest itself in various ways, but some examples include poor communication, a lack of support, or general toxic behavior from leaders that creates a negative work environment. And it’s easy to see why this would be such a huge turnoff for employees, especially if someone isn’t making a ton of money and only has limited potential for career growth. Even if employees are making decent money, their patience can only go so far if there’s a major disconnect between them and company leaders. That’s why it’s important to prioritize leadership, regardless of the size of your military surplus/outdoor/tactical store. But what exactly can you do?

Start by encouraging open communication and transparency in your workplace. Create an “open door” policy where employees can ask questions and voice their concerns whenever an issue arises. That alone can go a long way in helping you identify minor problems before they have a chance to escalate. Second, have your employees participate in feedback surveys every six to 12 months, where they can provide anonymous feedback. This can help you pinpoint leadership weaknesses and give you a better overall sense of how your employees feel about their jobs. Also, you may want to consider participating in basic leadership training, as this can help leaders develop their skills and better understand how to engage with employees. Several leadership training options are available online — many of which are completely free. Harvard University, for instance, currently has five free courses that can turn nearly anyone into a better company leader.   

Taking action to increase employee retention

Some levels of turnover are normal and inevitable in a retail setting. However, with this industry having a higher-than-average turnover rate, it’s something you want to keep in check and be proactive about minimizing. According to data, the top three reasons most employees quit are lack of career development, inadequate salary, and bad leadership. By tackling these issues head-on, you can go for the low-hanging fruit and take tangible steps toward improvement.