In the last year, it has become clearer than ever that professionals value their company’s culture above just about anything else.
A recent research study from the Massachusetts Institute of Technology shares that the so-called Great Resignation can be blamed on many things, but certainly not just compensation. The study highlighted that between April and September 2021, more than 24 million Americans left their jobs, a new record. Companies with strong reputations for a healthy culture, however, experienced lower-than-average turnover than others.
The study’s authors looked to employer review website Glassdoor for employee reviews and other data to conclude that there are five primary predictors of employee turnover during the Great Resignation:
- Toxic corporate culture
- Job insecurity and reorganization
- High levels of innovation
- Failure to recognize employee performance
- Poor response to Covid-19
At the top of this list is a toxic corporate culture. MIT found that this predictor is 10 times more important than compensation in predicting turnover. Workers that felt disrespected or perceived their companies to behave unethically were far more likely to put in their notice.
The researchers also found that job insecurity and reorganization predict how employees rate a company’s overall culture, so this is obviously high on the list of predictors of turnover. Employees suspecting layoffs are more likely to move on sooner than later.
Number three on this list is interesting, so let’s dig deeper. High levels of innovation on its own sounds exciting and like it would offer a multitude of opportunities to workers. However, MIT explains that innovation often requires employees to put in longer hours, and work faster and harder, and that might lead to higher stress levels. Innovation is exciting, but it can also put pressure on employees.
Number four on this list, failure to recognize employee performance, can definitely be tied back to culture as well. Employees that do not feel appreciated or recognized are more likely to leave their employers. Again, it’s not about pay. It’s about employees feeling that their efforts are appreciated.
The fifth highest predictor of employee turnover was a poor response to COVID-19. It’s safe to assume that employees who felt that their company put their and their colleagues’ health and well-being below profitability and other endeavors became more dissatisfied as the days went on during the height of the pandemic.
Bottom line: company culture matters always
As you kick off 2022, keep in mind that your culture may be your most important asset. Not only does it serve as the foundation for your business and your brand, it defines how you interact with your customers, clients, employees and other stakeholders.
Without talented employees, your business cannot perform its best. And it doesn’t take looking around very hard to see examples of this in corporate America today. Companies with a great culture tend to be most successful. Their shared vision and mission gain employee buy-in and respect from those with which they do business.
At TGRP Solutions, we know what a healthy company culture resembles. We also understand what the best and brightest talent is searching for in their next role. Contact us to learn more about how to make this hiring year your best yet!