An analysis from the Massachusetts Institute of Technology (MIT) Sloan Management Review revealed that behind the record employee turnover over these past few months is something a lot harder to fix and is 10 times more important than pay: a toxic work culture.
According to an article from Consumer News and Business Channel, data shows that toxic work culture is the biggest factor that led people to quit.
Employees are suffering from disrespect, inequality, exclusivity, unethical behavior, abusive managers, and an overall unsympathetic environment where they felt colleagues or superiors were actively undermining them.
Additionally, research shows that there is variation among the turnover rates in different industries. As stated by the MIT senior lecturer and lead author Donald Sull, this indicates that company leadership plays a big role in work culture and the rate of workers leaving. Other leading predictors of turnover are a poor response to COVID-19, failure to recognize employee performance, and high levels of innovation where companies move too quickly causing worker burnouts.
Nevertheless, Sull says the cause of turnover is still preventable. Leaders should learn to reward their employees for their efforts and companies should start examining their Psychological Safety.
Psychological Safety is defined as how workers consistently feel comfortable with their team, are not afraid to speak up, and can suggest proposals at ease. Research has shown that teams that have high psychological safety are good at learning and performing. This is what a non-toxic, safe, and productive workplace looks like.
The Leadership Coach Group conducts a psychological safety scan and coaching to help your team improve in critical areas. For more information about our team coaching services, see:
https://www.leadershipcoachgroup.com/team-effectiveness
and set up a free consultation: https://leadershipcoachgroup.as.me/talk.
Read the full article here: https://www.cnbc.com/2022/01/14/the-biggest-reason-people-quit-is-10-times-more-important-than-pay.html