Research has shown that the number one predictor of employee attrition is organizational culture. A toxic corporate culture is in fact 10.4 times more powerful than compensation in predicting whether people quit their jobs or now.

In this workshop, Dr. Toma shared fascinating research findings related to what makes employees resign and what companies can do to retain talent. Hint: it’s not all about offering higher salaries.

The Rise of the Great Resignation

The study analyzed a staggering 34 million employee profiles and over 1.4 million reviews on Glassdoor, revealing that the so-called "Great Resignation" has impacted industries across the board, from blue-collar to white-collar sectors. This mass movement has sparked a need for deeper analysis into what drives employees away from their jobs.

_{Source: Sull, D., Sull, C., & Zweig, B. (2022). Toxic Culture Is Driving the Great
Resignation. MIT Sloan Management Review.}

Top Five Predictors of Employee Attrition

The researchers identified five key factors that predict employee turnover, emphasizing that respect and civility play more significant roles than compensation in retaining staff:

1. Response to COVID-19: Employees value a company's efforts to ensure safety and show genuine care for their well-being more than their salary.

2. Recognition of Performance: Acknowledging employees’ hard work is crucial. This recognition can be as simple as verbal praise but has a profound impact on employee retention.

3. Innovation Stress: Companies known for high innovation might face higher attrition rates due to poor work-life balance and high stress, leading to burnout.

4. Job Insecurity and Reorganization: Structural changes within a company can lead to job insecurity, significantly influencing an employee’s decision to stay or leave.

5. Toxic Corporate Culture: The most potent predictor of employee turnover, toxic corporate culture, can be ten times more influential than salary in an employee's decision to leave.

Toxic Culture

1. Employees feel disrespected
2. Toxic leadership
3. Lack of inclusion, diversity and equity
4. Lack of work-life balance

<sub>Sources:
1. Leiter, M. P. (2019). Costs of incivility in workplaces and potential remedies. In R. J. Burke & A. M. Richardsen (Eds.), Creating psychologically healthy workplaces (pp. 235–250). Edward Edgar Publishing.
2. Lim, S. and Lee, A. (2011). Work and nonwork outcomes of workplace incivility: Does family support help? Journal of Occupational Health Psychology, 16(1), 95</sub>

Respect vs Incivility at Work

Incivility = describes social encounters that convey
disrespect with low intensity and ambiguous intent

Understanding and Addressing Workplace Incivility

Incivility is described as social encounters that convey disrespect with low intensity and ambiguous intent, which can occur in face-to-face or remote communications. Incivility is a workgroup phenomenon, not an individual problem, and it often spirals into more significant issues if not addressed.

Examples of incivility include dismissive attitudes, ignoring contributions during meetings, or responding to queries with an unreasonably delayed or brusque manner.

Incivility often breeds more incivility. Anderson & Pearson (1999)* identified how it spreads in a workplace and created the diagram below showing the incivility spiral.

_{*Andersson, L. M., & Pearson, C. M. (1999). Tit for Tat? The Spiraling Effect of Incivility in the Workplace. The Academy of Management Review, 24(3), 452–471.} 

The Cycle of Incivility and Its Effects

_{*Source: Rahim, A., & Cosby, D. M. (2016). A model of workplace incivility, job burnout, turnover intentions, and job performance. Journal of Management Development, 35(10), 1255–1265.}

Workplace incivility, such as rudeness and lack of respect, can create a toxic environment for employees. This behavior often goes unnoticed or unaddressed by management, yet it has profound effects on an employee's well-being and their productivity. Incivility in the workplace can demotivate individuals and lead to poor job performance. When employees face a continuous lack of respect, their commitment to the organization wanes, directly affecting their efficiency and output quality.

The Link Between Incivility and Job Burnout
The stress from enduring workplace incivility frequently leads to job burnout. This condition is characterized by emotional exhaustion, cynicism, and a feeling of reduced personal accomplishment. Burnout not only affects the health and happiness of employees but also decreases their ability to perform effectively at work. As burnout increases, the likelihood of employees seeking employment elsewhere rises significantly.

Decreased Performance and Increased Turnover Intention
Poor job performance is both a cause and a consequence of workplace incivility and job burnout. Employees who experience incivility often struggle to maintain their performance levels. This decrease in performance can further exacerbate feelings of inadequacy and dissatisfaction with their jobs.

Furthermore, the diagram illustrates that both job burnout and decreased job performance are directly linked to turnover intention. Employees who are burned out or underperforming are more likely to intend to leave the organization. This intention, if not addressed, eventually translates into actual turnover, completing the cycle of loss for the organization.

The Cost of Incivility

Research by Porath and Pearson (2013) has identified that among workers who have been on the receiving end of incivility:

_{Porath, C., & Pearson, C. (2013). The Price of Incivility. Harvard Business Review, 91(1/2), 114–121.}

Checklist: How to spot if your people are thinking about leaving

Recognising early indicators is crucial for proactive engagement and retention strategies. These checklists offers practical steps to help you understand and address employee concerns effectively, ensuring your team remains motivated and committed to your company's objectives.

Organisational Checklist

1. Have you measured organisational sentiment about your COVID response?
2. Do you have a way for people to report incivility that is easy to use?
3. Does your executive leadership embody the company values?
4. Do people in your organisation share the same understanding of what is civil
   behaviour and what is expected of them in the workplace?
5. Did you provide specific training to your managers to deal with incivility in the
   workplace?

Strategies for Employee Retention