Toxic corporate culture is the top predictor of employee attrition in the Great Resignation and is 10 times more important than compensation in predicting turnover, according to research released January 11 in MIT Sloan Management Review.  Job insecurity and reorganization was a second, albeit, distant driver, followed by high levels of innovation, failure to recognize employee performance, and poor response to COVID-19.

The research also identified four steps — offering lateral career opportunities, remote work, social events, and more predictable schedules — that can boost retention in the short term across both blue-collar and white-collar industries.

These steps are effective, inexpensive ways to increase retention, according to the authors. For example, offering company-sponsored social events had a 1.3 times as powerful effect on boosting retention as a rise in compensation, whereas providing lateral career opportunities was 2.5 times as powerful as an increase in compensation.

For the report, the researchers analyzed 34 million online employee profiles to identify US workers who left their employer between April and September 2021. They then analyzed the employer's culture using data from the MIT SMR / Glassdoor Culture 500 dataset of hundreds of the largest employers in the United States.

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