Cracking the code: discover the surprising key drivers behind employee attrition, revealed by the McKinsey report

‍Insights on Employee Attrition and Building a Positive Work Environment

‍In our recent webinar titled "Driving Workplace Happiness: The Power of Employee Benefits and Appreciation," hosted by Huggg in collaboration with Octopus Electric Vehicles, our CEO Paul Wickers shared some eye-opening insights from the McKinsey report on employee attrition.

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The report brings to light the challenges employers face in retaining their employees and reveals that contrary to popular belief, monetary rewards and material possessions are not the primary drivers of employee motivation. He emphasised that creating a great employee experience isn't just important for happy employees, it's actually linked to higher productivity and 25% greater profits! With around 40% of employees ready to leave their jobs due to employer missteps, it's imperative to pay attention to what really matters to employees.

The 'Great Attrition' is real, and appears widespread across industries

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Reasons for Employee Attrition

The McKinsey report found a significant "Recognition Gap" between what employers think is important to employees and what employees really prioritise in employee experience. They discovered that employees actually crave relational elements that employers are overlooking. Money and material goods aren't the biggest motivators for employees.

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The report identified the top three reasons for employee attrition (that employers are underestimating) are:
 

❌ Not feeling valued by the organisation

❌ Not feeling valued by managers

❌ Not having a sense of belonging at work‍

Employers do not fully understand why employees are leaving

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While these reasons may seem simple, they highlight the need for a positive work environment where employees feel appreciated and acknowledged.

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Building a Culture of Appreciation through Gifting

So, how can you build a culture of appreciation and keep your staff motivated? That's where layered gifting comes in! Gift giving is a powerful way to connect with others. 

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With the Huggg platform, you can empower everyone in your company to show appreciation to one another. This allows you to build a culture of appreciation, where managers, teams, and peers can recognise each other in the moment when it truly matters. Plus, you can track and report all acts of appreciation, making sure it's embedded throughout your entire company.

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Case Study: Octopus Electric Vehicles

Octopus Electric Vehicles integrated Huggg into their appreciation strategy and showed high levels of employee satisfaction.

Want more details? Read the full Octopus case study.

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Conclusion

It's important to note that creating a positive work environment isn't just about having happy employees. It can actually lead to higher productivity, increased profits, and a lower rate of attrition. By focusing on what employees truly value - feeling appreciated by their organisation and those around them - you can create a culture of appreciation that fosters a positive and motivated workforce.

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Incorporating gifting and recognition into your company culture with Huggg is a powerful way to achieve this. By empowering everyone in your organisation to show their appreciation, you can create a culture where every employee feels valued and recognised. Furthermore, by tracking and reporting all the acts of appreciation happening across your company, you can ensure that it becomes embedded in your organisational culture.

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By following these steps and closing the recognition gap, you can foster a positive and motivated workforce that will drive your organisation towards greater success. So let's crack the code and keep those employees happy!