McKinsey & Company came out with an insightful piece “‘Great Attrition’ or ‘Great Attraction’? The choice is yours” (McKinsey Quarterly, September 08, 2021) that makes for interesting reading.
If I understand the McKinsey research correctly, the pandemic is dismantling the way people look at their jobs. This has given rise to what McKinsey call the ‘Great Attrition’.
And so, they deep-dive into the nature and characteristics of the so-called ‘Great Attrition’ and what’s driving it.
The bottom line is that it is happening, it’s widespread and likely to persist – if not accelerate – and many companies don’t understand what’s really going on, despite their best efforts.
It doesn’t have to be this way. If companies make a concerted effort to better understand why employees are leaving and take meaningful action to retain them, the ‘Great Attrition’ could become the ‘Great Attraction’. By seizing this unique moment, companies could gain an edge in the race to attract, develop, and retain the talent they need to create a thriving post-pandemic organization.
Executives who think that employee attrition is easing – or is limited to particular industries – are misguided. Forty percent of the employees in our survey said they are at least somewhat likely to quit in the next three to six months. Eighteen percent of the respondents said their intentions range from likely to almost certain. These findings held across all five countries (i.e. Australia, Canada, Singapore, UK and the United States) that they surveyed were broadly consistent across industries.
Businesses in the leisure and hospitality industry are the most at risk for losing employees, but many healthcare and white-collar workers say they also plan to quit. Even among educators – the employees least likely to say they may quit – almost one-third reported that they are at least somewhat likely to do so.
Furthermore, these trends may persist. Fifty-three percent of the employers said that they are experiencing greater voluntary turnover than they had in previous years, and 64 percent expect the problem to continue – or worsen – over the next six months.
Among the employees in their survey, 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 staffers.
It is claimed that US employees were the most likely to say they had left their old jobs without a new one (40 percent). At the industry level, 42 percent of healthcare and social-assistance workers who quit did so without having a new job – a reminder of the pandemic’s toll on frontline workers. One-quarter of white-collar employees who quit said they had done so without having a job lined up, a finding that held across income levels.
This trend not only is poised to continue but could get much worse. Among employees who said they are at least somewhat likely to leave their jobs in the next three to six months, almost two-thirds added that they would do so without lining up new jobs.
CEOs may be tempted to take solace in the fact that 60 percent of the employees in our survey said they were not at all likely to quit in the next three to six months.
But employers shouldn’t consider this 60 percent “safe” from the prospect of attrition either. Options are increasing, and with more and more employers offering remote-work choices for hard-to-source talent, these employees could change their intentions.
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).
There is a real disconnect between employers and employees. The latter were far more likely to prioritize relational factors, whereas the former were more likely to focus on transactional ones.
McKinsey suggest employers ask themselves the following questions:
- Do we shelter toxic leaders?
- Do we have the right people in the right places (especially managers)?
- How strong was our culture before the pandemic?
- Is our work environment transactional?
- Are our benefits aligned with employee priorities?
- Employees want career paths and development opportunities. Can we provide it?
- How are we building a sense of community?
McKinsey’s solution is simple really – start with a focus on the relational aspects of work that people have missed the most.
I have always said, relationships matter. This study proves me right yet again.