Great Attrition

Why It Matters

McKinsey's 2021-2022 research series reframed the mass voluntary turnover trend as "The Great Attrition" to highlight the employer-side impact. While the term "Great Resignation" centered the employee's decision to quit, "Great Attrition" focuses on what organizations are losing: institutional knowledge, high performers, and the capacity to execute. The distinction matters because it shifts the conversation from "why are people leaving?" to "what are we doing that makes leaving the better option?"

The Perception Gap

McKinsey's research revealed a significant gap between what employers thought was driving attrition and what employees actually reported. Employers assumed compensation was the primary factor. Employees cited meaningful work, flexibility, better management, and a sense of belonging as more important reasons for leaving. This perception gap meant that many organizational responses (signing bonuses, salary increases) failed to address the real causes.

The Selective Problem

The Great Attrition was not evenly distributed. High performers and employees with in-demand skills had the most options and were most likely to leave. Organizations that failed to address the root causes experienced negative selection: the people who stayed were disproportionately those with fewer alternatives. This compounded the problem, as declining talent density made the organization even less attractive to remaining high performers.

• Survey departing employees on actual reasons for leaving, not assumed reasons
• Address management quality, flexibility, and meaningful work as retention drivers alongside compensation
• Track which performance segments are leaving, not just overall turnover rates
• Treat retention of high performers as a leading indicator of organizational health

Source

McKinsey & Company, The Great Attrition is Making Hiring Harder (2021-2022 series).