40% of employees ‘somewhat likely’ to quit their jobs in 3-6 months, survey says

Feel like quitting your job?

You’re not alone. More than 15 million U.S. workers have left their jobs since April, and 40% of employees surveyed in the U.S., Australia, Canada, Singapore and the United Kingdom say they’re “somewhat likely” to quit in the next three to six months, a new report says.

The report from McKinsey & Co. doesn’t bode well for the scores of employers who are scrambling to fill all of their job openings amid a fractured COVID-19 economy.

And it gets worse.

The report — which surveyed 5,774 people of working age –additionally shows that 64% of those considering leaving say they would do so without another job in hand.

More validation, please

So, what’s driving these people to jump ship?

Compensation is a factor, but contrary to what most companies might believe, it’s not the main reason people are contemplating quitting. McKinsey’s findings show a majority of employees highlight not feeling valued by their organizations (54%) their managers (52%) or not feeling like they belong (51%) as the primary reasons for leaving.

Many companies are boosting pay or offering bonuses without making any effort to strengthen the ties people have with their colleagues and employers, the survey said. So rather than sensing appreciation, employees sense a transaction, which reminds them that their real needs aren’t being met.

“They want to feel a sense of shared identity,” the report said. “They want to feel valued by their organizations and managers.”

Who’s most likely to quit?

The McKinsey report shows that 47% of people working in leisure and hospitality are “somewhat likely” to leave their jobs in the next three to six months. That was followed by others employed in manufacturing (43%), white-collar jobs (41%), trade, transportation and utilities (38%), healthcare and social assistance (36%) and education (32%).

Related: US initial jobless claims rise again, led by California

“The leisure and hospitality sector has a particularly large frontline component of their workforce where churn is typically higher than in other industries, so this trend isn’t shocking,” said Bonnie Dowling, an associate partner with McKinsey who co-authored the report.

Employees in that industry have long bemoaned the unforgiving hours, heavy work schedules, low pay, over-reliance on tips and lack of benefits, she said.

Dowling said the situation has worsened amid pandemic-related layoffs, surging virus levels at work and the on-again/off-again cycle of business closures during the health crisis.

“These businesses, like those in other sectors, have to show current and future employees that they value them, or employees have made it clear that they will find another business that will,” she said.

Remote work figures into the mix

The COVID-19 pandemic has created increased opportunities at many companies to work from home at least part of the time, and that has accelerated attrition rates as workers leave inflexible work situations for others that allow some level of remote work, the report said.

Read more: Working from home: Employees willing to take pay cuts, forgo benefits

Employers looking to compete in today’s hybrid workplace would do well to offer at least some opportunities for remote work, McKinsey said.

Leslie Tarnacki, senior vice president of global human resources at WorkForce Software, said today’s job seekers aren’t settling for just any open opportunity.

“Today’s candidates know there are a lot of options at their fingertips when they are ready to get a job, and they are taking a wait-and-see approach to find something that checks the boxes for everything they are looking for in a job,” she said.

Dowling agreed.

“Quitting a job without another offer lined up does not seem as risky as staying in a job where you feel dissatisfied, unappreciated and it’s harming your health,” she said. “And with the current sellers’ market for talent today, it’s hard to imagine that skilled employees will have a challenge finding work when they are ready to return.”