Good morning!
Earlier this year, business leaders and media outlets alike were quick to declare the “Great Resignation” over as quit rates returned to pre-pandemic levels.
But as I wrote last month, the quit rates in late 2019 were still considered historically high, suggesting employers aren’t out of the woods yet. And a new survey from Boston Consulting Group (BCG) of more than 11,000 employees across eight countries indicates that attrition could remain volatile next year. According to BCG’s survey, 28% of workers say they do not see themselves staying with their current employer over the next year.
Employees surveyed listed factors like pay, benefits and perks, and work-life balance as the top reasons for taking a new job. But more emotional factors also play a significant role in an employee’s decision to leave. When asked to rank different aspects of work, pay and hours still held the top two spots. But, emotional needs such as being fairly treated and respected, job security, and doing work they enjoy rounded out the top five preferences for employees. For workers who intended to leave their jobs, those emotional factors were particularly top of mind, beating out functional aspects like pay.
“It’s so intuitive. When do you say, ‘You know, I’ve had it, I’m looking for a new job’? It’s when someone takes credit for work that you did, yelled at you, or made you feel like you don’t matter,” says Debbie Lovich, head of people strategy at BCG. “Those are the things that drive attrition risk. That’s the important stuff to act on if you want to prevent churn.”
Out of 300 different attributes in the workplace, BCG’s report identified managers as the “most powerful lever” employers have for meeting employees’ emotional needs. Around 56% of employees who reported strong dissatisfaction with their manager were less likely to want to stay with their employer the next year, compared to 16% of workers who were very satisfied with their manager.
But creating great managers is more easily said than done. Supervisors should receive on-the-job coaching and be encouraged to improve their leadership habits, says Lovich. For example, managers should be trained to help guide employees through problem-solving instead of just giving them the answers.
“The best way to create great managers [is] through on-the-job coaching, the rhythm and routines, the small things that people do that make a big difference,” says Lovich. “So it’s more the role of operations—in partnership with HR, of course—but it’s got to happen every minute of the day.”
Paige McGlauflin
paige.mcglauflin@fortune.com
@paidion
Reporter's Notebook
The most compelling data, quotes, and insights from the field.
Skyrocketing childcare costs areforcing some parents to take on extra gigs to make ends meet. Monthly payments for childcare were 32% higher in September than pre-pandemic, according to an analysis from the Bank of America Institute. The surge in care costs is creating a financial crisis for many American workers.
“We’re in a pretty comfortable income bracket and I still feel stretched,” said Heela Rasool, a think tank employee who works 10 hours per month at her children’s preschool, which offers her a discount in exchange for her time.
Around the Table
A round-up of the most important HR headlines.
- Marketing agencies and departments expect AI technology to revolutionize the industry, but there’s still a deficit of AI-integrated jobs in the field.Wall Street Journal
- Employers and employees are embracing a new type of cubicle that can be customized for comfort.New York Times
- Some Gen Z workers are ditching big cities for better job markets in mid-size cities like Ann Arbor, Michigan, and Boulder, Colorado.Business Insider
- Goldman Sachs is expected to give their traders slightly more generous bonuses this year after a cut in bonuses last year led to employee unrest.Financial Times
Watercooler
Everything you need to know from Fortune.
Way unfair. Wayfair CEO Niraj Shah told employees that“working overtime” and “blending work and life”is expected as the furniture retailer tries to keep up its momentum, but some employees aren’t convinced. —Orianna Rosa Royle
Matchmaking. A law goes into effect Jan. 1 that will allow employers tomatch their employees’ student loan payments with 401(k) contributions. —Alicia Adamczyk
Stock dropped. Some full-time employees at Tesladid not receive merit-based stock options this year as cost-cutting jeopardized the annual offering. —Dana Hull, Bloomberg
No going back. Workplace author and Bloomberg columnist Julia Hobsbawm thinksflexibility has become a permanent desire for workers, and companies who fail to provide it will lose their employees to freelancing. —Chloe Berger
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