In This Issue
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Toxic Work Cultures Are Propelling the Great Resignation
It’s not about the money
Despite rising recession concerns, the Great Resignation remains in full swing as workers continue to quit their jobs at near-record levels. Although the conventional wisdom holds that money is the primary cause of the unprecedented job-hopping, a recent study by analytics company CultureX and workforce intelligence company Revelio Labs found that compensation ranked only 16th among all topics in terms of forecasting employee turnover based on an analysis of more than 1.4 million Glassdoor reviews across 38 industries between April and September 2021.
The study found that the strongest predictor of how employees rated company cultures was whether or not they felt respected. A lack of consideration, courtesy, and dignity for others had the largest negative impact on employees’ overall ratings of corporate cultures than any single item. Other leading contributors to toxic cultures were an inability to promote diversity, equity, and inclusion and a failure to stop unethical, cutthroat, and abusive behavior.
Providing employees with lateral career opportunities is among the most effective steps companies can take to retain star employees and promote healthy cultures, according to the study. The researchers found that lateral career opportunities were 2.5 times more powerful than compensation as a predictor of a company’s relative retention rate. Since more employees desire a new challenge than a move up the corporate ladder, lateral opportunities were actually 12 times more predictive of employee retention than promotions.
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Soft Skills in Greater Demand Post-Pandemic
Second that emotion
That’s the bottom line
More companies are taking soft skills into consideration when performing a skills gap analysis and developing training programs for up-and-coming leaders. A McKinsey Global Institute survey found that the proportion of companies addressing empathy and interpersonal skills in their training programs doubled in 2020. Since employees leave bad managers even in well-run firms, such investments in the development of soft skills will not only strengthen future leaders but have a bottom-line effect in lowering turnover rates.
A guide to help you better understand how AE firms are valued and – perhaps more importantly – what you can do to build value now.Read Newsletter