Approximately 28 percent of the global workforce is contemplating a change in employment within the next year, as reported by Boston Consulting Group (BCG). This figure encompasses individuals actively seeking new opportunities and those open to switching employers, emphasizing that a significant portion of workers is considering altering their professional circumstances despite low global unemployment rates.
BCG Report: Employee Attrition Trends and Managerial Impact on Job Satisfaction
The report highlights a noteworthy statistic for India, where 26 percent of surveyed employees are contemplating leaving their current jobs within the next year. This mirrors the challenge faced by Indian employers, as well as their global counterparts, in retaining talent and addressing factors influencing employees to explore new opportunities.
The survey, conducted between October 6 and 30, 2023, included 11,000 employees from the US, Canada, the UK, France, Germany, Australia, Japan, and India. When asked about factors influencing a job change, employees primarily focused on functional aspects, with pay being the top priority, followed by benefits, work/life balance, engaging work, and career learning opportunities.
BCG’s report, titled “What Really Matters At Work, And Why We Should Care,” underscores the urgency for employers worldwide to understand and address both functional and emotional drivers influencing employee satisfaction. The survey reveals that while pay and job hours are crucial, emotional factors such as workplace respect, fairness, and recognition are equally significant.
Importantly, the analysis indicates that managers play a pivotal role in meeting employees’ emotional needs. Great managers are associated with a substantial reduction in attrition, with a 72 percent decrease for employees highly satisfied with their managers compared to those who are not. This influence holds true across surveyed countries, except for India, where it ranks as the second most influential factor.
Unlocking Employee Potential: The Transformative Impact of Effective Management Practices
Beyond attrition, the study shows that great managers contribute to a 3.2x increase in employee motivation, a 13.9x increase in job satisfaction, and enhanced feelings of inclusion. In fact, employee satisfaction with their managers correlates with a 36-point increase in inclusion on BCG’s BLISS index.
Investing in upskilling managers and incentivizing their excellence emerges as a highly impactful strategy for retaining top talent. Dissatisfaction with managers doubles the attrition risk, with 56 percent of employees expressing such dissatisfaction at risk, compared to the global average of 28 percent.
Additionally, the research identifies three levers—supportive leaders, access to resources, and equal opportunities regardless of background—that, when combined with great management, significantly reduce attrition risk from the global average of 28 percent to 9 percent.
BCG’s findings underscore a shift in the employer-employee dynamic, emphasizing the need for leaders to treat employees like customers. Beyond traditional factors like pay and benefits, understanding and addressing employees’ emotional needs are crucial for retaining talent, and leaders ignoring this reality do so at their own peril.
