Think about the last organisation that you went into. Looking around the reception, was there a glossy poster that showed the organisation’s values?
Probably.
And could you predict those values before you even wandered over to have a look?
So many posters. So many words.
And yet. In the US at least, there was an all time record of more than 24 million American employees leaving their jobs between April and September 2021. Why? Why are so many people leaving their jobs?
Particularly at such a turbulent and unstable time. Particularly with all the pretty values posters up on the wall?
The answer is both depressing and illuminating.
What’s making people leave?
More likely too than job insecurity. failure to recognise performance or a poor response to COVID:
Image source: https://sloanreview.mit.edu/article/toxic-culture-is-driving-the-great-resignation/
“The Toxic Five”
Further analysis of the same research shows that there are five elements that make up a toxic culture and that are predictive of attrition.
The Toxic Five elements of Toxic Culture describe a culture that is:
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Non inclusive
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Disrespectful
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Unethical /dishonest / or with low integrity
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Cut-throat
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Has abusive management
Ironically, in a podcast with Brene Brown, Donald and Charles Sull make the point that many organisations have the opposite of these very attributes as their corporate values (think integrity, inclusion, teamwork blah blah…)
Here’s the thing. This stuff is at the very core of what it means for most of us to be a decent human being.
Being inclusive, treating people with respect, not lying or stealing, not crawling over others to get what we want and hopefully it goes without saying, not actually abusing people.
And yet!
It continues to happen..
Some interesting things about the research
This stuff is both easy and hard. Here are some simple things that can start to make a difference almost immediately..
Again, taking from the research above, the authors suggest some simple things that can be introduced easily:
- Predicable shift structures
- Lateral career moves for those that aren’t necessarily keen to climb the corporate ladder
- Company organised social events
- Remote work opportunities
The Cost of Toxic Culture
For those organisations that are excusing or explaining away their toxic culture, it may be useful to think about the cost.
The cost of high turnover:
- The cost of loss of corporate knowledge
- Recruitment costs
- The time it takes the new incumbent to be fully up to speed
- The mistakes/opportunity cost that occurs between the person leaving and the new person being fully on speed
The impact and cost to the employee (and employer):
- Physical and mental health impacts resulting in sick leave and absenteeism
- Possible stress leave claims impacting on workers compensation claims and cost
- Bullying claims and the cost to the organisation in terms of the impact on the employee
- The cost of the employee being present but not actually “there” in terms of lack of productivity, engagement and morale
Legal implications and costs:
- Bullying claims and the cost to the organisation in investigation time and costs
- Legal costs defending claims
- Possible orders from the Fair Work Commission
Reputational cost:
- The risk to brand reputation
- The risk of employer reputation and the cost of how to attract, recruit and retain employees
The Takeaway
The data is clear. The costs are clear.
People are leaving and leaving because of what it is like to work for their employer.
And that employer could be you.
So, the takeaway is do you know why people are leaving your organisation? Do you know how people describe your corporate culture?
Could you be the next statistic?
More Resources..
Why do good people do bad things? Read this post on Rotten Apples, Bad Apples and Sticky Situations..
Toxic Culture is Driving the Great Resignation
Brene Brown speaking with Donald and Charles Sull on their research
Want more still…….
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