‘Great Attrition’ or ‘Great Attraction’? The choice is yours

A record number of employees are quitting or thinking about doing so. Organizations that take the time to learn why — and act thoughtfully — will have an edge in attracting and retaining talent.

If the past 18 months have taught us anything, it’s that employees crave investment in the human aspects of work. Employees are tired, and many are grieving. They want a renewed and revised sense of purpose in their work. They want social and interpersonal connections with their colleagues and managers. They want to feel a sense of shared identity. Yes, they won't pay, benefits, and perks, but more than that they want to feel valued by their organizations and managers. They want meaningful — though not necessarily in-person — interactions, not just transactions.

By not understanding what their employees are running from, and what they might gravitate to, company leaders are putting their very businesses at risk.

Attrition could get worse since employees are willing to quit without a job lined up

According to the survey done by McKinsey among the employees surveyed, 36 percent who had quit in the past six months did so without having a new job in hand. This is yet another way the Great Attrition differs fundamentally from previous downturn-and-recovery cycles — and another sign that employers may be out of touch with just how hard the past 18 months have been for their workers.

Otherwise satisfied employees may also be tempted to quit as their options expand

Employers can’t fix what they don’t understand

To stem the tide, senior executives must understand why employees are leaving. Many are struggling to do so. For example, when employers were asked why their people had quit, they cited compensation, work-life balance, and poor physical and emotional health. These issues did matter to employees — just not as much as employers thought they did. By contrast, the top three factors employees cited as reasons for quitting were that they didn’t feel valued by their organizations (54 percent) or their managers (52 percent) or because they didn’t feel a sense of belonging at work (51 percent).

Hence there is a clear disconnect between employers and employees were most acute. It highlights how employees were far more likely to prioritize relational factors, whereas employers were more likely to focus on transactional ones.

As you take stock, ask the following questions:

Do we shelter toxic leaders? Executives who don’t make their people feel valued can drive them from companies, with or without a new job in hand. If you don’t have leaders who motivate and inspire their teams and lead with compassion, you need them — desperately.

Do we have the right people in the right places (especially managers)? Many employers in our survey reported having the right people but not necessarily in the right places. When it comes to managers, this problem can be particularly damaging, especially in hybrid environments, where new leadership skills are required. Training and capability building will be crucial for managers and executives who didn’t come from hybrid or virtual environments — in other words, for everyone from the C-suite to the front line.

How strong was our culture before the pandemic? If you’re like many executives we know, you see a return to the office as a way to address lingering culture and connectivity concerns. Or you prefer a full return to the office because you miss it yourself (a case of “absence makes the heart grow fonder”). You should remember that although the needs of your employees have changed, your culture may not have kept up, and any prior organizational weaknesses are now magnified. Employees will have little tolerance for a return to a status quo they didn’t like before.

Is our work environment transactional? If your only response to attrition is to raise compensation, you’re unwittingly telling your people that your relationship with them is transactional and that their only reason to stay with you is a paycheck. Your very best people will always have a better cash offer somewhere else. You want to solve the problems of the whole person (not just their bank accounts) as well as the whole organization.

Are our benefits aligned with employee priorities? Free parking or entertainment-related perks are probably not top of mind for employees right now. Among survey respondents who had left their jobs, 45 percent cited the need to take care of the family as an influential factor in their decision. A similar proportion of people who are thinking of quitting cited the demands of family care. Expanding childcare, nursing services, or other homes- and family-focused benefits could help keep such employees from leaving and show that you value them as whole people.

Employees want career paths and development opportunities. Can we provide it? Employees are looking for jobs with better, stronger career trajectories. They desire both recognition and development. Smart companies find ways to reward people by promoting them not only into new roles but also into additional levels within their existing ones. This is one-way companies can more quickly reward and recognize people for good work.

How are we building a sense of community? Remote work is no panacea, but neither is a full on-site return. In-person connectivity continues to have massive benefits for your organization. But it will require considerable management attention to get right as health and safety concerns continue to evolve, particularly because employees’ needs and expectations have changed. For example, employees with unvaccinated young children may feel unsafe at large in-person gatherings. The company created a Slack channel for posting photos and stories, encouraging employees to share these experiences.