Employees don't quit for higher pay – they leave over this toxic trait

'It takes a village to make this place successful'

Employees don't quit for higher pay – they leave over this toxic trait

They say money makes the world go round – and with the current economic uncertainty and rising inflation concerns, it certainly seems to ring true. For employers, balancing the influx of pay rise requests off of business interest rates is giving HR departments a headache. And it’s spurring people on to look for pastures new.

But it’s not all about salary – in fact, quite often money alone is never really enough of a reasons for someone to stay. Speaking to HRD, Jodi Baker Calamai, Deloitte’s global HR strategy and digital HR leader, echoes this sentiment.

“There are tons of stories of people who have left us over the years, were offered double their salary and all the promises in the world, Baker Calamai, who tracks the boomerang rate for the organization, or the number of employees who leave and return, tells HRD.

“They realize that compensation is important, but all those other things that create meaning and value every day make the difference.”

In a report from the MIT Sloan Management Review, researchers says that a toxic work culture is actually the biggest reason people jump ship – in fact, it’s 10.4 times more powerful in predicting an organization’s attrition rate than salary. Following that, employees are actively seeking “innovative” companies – even if that means working longer hours.

Higher wages vs compassionate culture

And the data’s there to back it up. According to O.C Tanner’s recent Global Culture Report, recognition, and how that interplays with culture, is absolutely intrinsic to success. Their data found that 74% of employees say recognition is a crucial part of workplace community – and that when leaders actively listen and appropriately address feedback, the odds of having a strong workplace community improve by 6x.

But what does make the ideal workplace? Speaking to HRD in a recent awards profile, Jeffrey Neinstein, partner at one of Canada’s Best Places to Work, says that an authentic culture comes from – surprise, surprise - collaboration.

“It takes a village to make this place successful, and part of the recipe is we get everyone involved; it doesn’t matter whether you’re an entry clerk or a senior lawyer – everyone has a seat at the table and makes a difference,” he explains. “The collaborative efforts of our entire staff make this place tick.”

To see how you can supercharge your culture, take a look at our recent Best Places to Work in Canada awards here.