Study Finds ‘Toxic Workplace Culture’ as a Bigger Driver for Great Resignation than ‘Low Wage’
During this great resignation period, employers should take a critical look at themselves if they want to hold on to their employees. According to a new study, a toxic workplace culture is more of a predictor of employee departure than a low wage.
Higher wages are certainly an important factor driving millions of people around the world to quit their jobs. However, a study of over 1.4 million Glassdoor ratings from companies in 38 different industries indicated that company culture is 12.4 times more likely than low-wage to predict whether an employee will leave the company.
Workers in both front-line and so-called “knowledge worker” positions were affected by this.
According to Donald Sull, a co-founder of CultureX, an analytics company that conducted the poll released on Tuesday, “compensation is at best a moderate predictor of attrition.”
CultureX used a Revelio Labs HR database system to gather information from Glassdoor reviews left by former employees. Work schedule predictability, advancement opportunities, and recognition are all factors that keep employees on a job.
Sull defines a toxic workplace as one where “employees are subjected to bullying, harassment and discrimination.”
Low-wage industries, such as leisure and hospitality, are seeing some of the highest turnover rates, as are high-burnout sectors, like health care and education. The lowest earners have also seen the biggest wage gains in the last 12 months, leading economists to believe that many people are leaving their jobs for better paying ones.
The CultureX study indicated that job insecurity, inability to recognize employee performance and a poor response to Covid-19 were all associated with high quit rates.
Higher attrition rates were seen at Tesla Inc. and Netflix Inc. when compared to other organizations in the same industry, which could be attributed to the intense competition in these workplaces.
According to Sull, there is a lot of pressure because of the lofty goals. “It may be more difficult for folks to maintain that pace in the long run.”
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