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What’s in a name? Call it what you will—the “Great Resignation” or “Great Disruption”—the fact remains that nearly 69 million people in the US quit their jobs in 2021. A common misconception: better compensation stops worker flight. While pay and benefits are important, two-thirds of employees left their jobs in 2021 for reasons related to engagement and well-being. That means the majority of US workers are quitting because they aren’t happy with their bosses, work cultures, or work–life balance, according to Gallup’s research. [Fast Company] |
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Don’t you know that you’re toxic? For employers still wondering about the potential root cause of this exodus, a recent study provides one clear answer: toxic workplace culture. Researchers found that toxic culture is more than ten times likelier than compensation to predict attrition. Work toxicity encompasses a range of issues, including disrespect, dishonesty, and cutthroat competition. Employers need to figure out how toxicity shows up in their companies—and then take steps to fix it. [Market Watch] |
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Why it matters. Employers can seize this moment to rethink their relationships with their employees and how to win back and retain them. Part of that response involves acknowledging that employees have gone through a traumatic period and empowering them to find a way forward. One problem is that employers and workers aren’t on the same page about what’s important. While employers think that many workers quit because of inadequate pay, McKinsey research shows that workers most often say they left because they didn’t feel valued.
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What’s next? Other steps employers could take to engage their workforce include restructuring compensation and adding benefits that help create better work–life balance. They can also seek talent among nontraditional sources like students or contract workers. Now, more than ever, it’s time to listen to your workers, address employee concerns, and foster a supportive culture. Check out the latest edition of McKinsey Quarterly’s Five Fifty for a five-minute briefing—or a fifty-minute deeper dive—on winning back your workers.
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| — Edited by Kanika Punwani |
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Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
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