Did you know that over 50 million people left their jobs in 2022? It beats the previous record of 48 million who left in the previous year, according to the U.S. Bureau of Labour Statistics. However, after these years of record-high quit rates, the time seems to be finally turning in favour of the employers. A few signs that show that the Great Resignation is over include:
1. Quit rates are declining
The percentage of people quitting their jobs reduced from 3.8 million to 2.4% in June. Also, these declining rates are similar to pre-pandemic rates.
2. Labour force participation is increasing
Shockingly, labour force participation, which ranged from 25 to 54, fell below 80% during the peak of the pandemic. However, these numbers have started to increase, as it was found that the rate had increased to 83.5% in June.
3. Job listings have decreased
As of the end of June, job postings or the rate of workforce requirement had reduced to near about 9.6 million, and that’s the lowest since April 2021.
4. Package benefits for job switchers are reducing
Another bad news for job switchers is that the pay increase from switching jobs was reduced by 16%, which peaked in June 2022. The rates decreased to 13.2% this April, which is the lowest since November 2021.
Employers would be happy to know that the talk of the town is that we are entering now could be the “Big Stay.” Although it may not be a good thing for the employees, it is surely a positive sign for the employers. However, it doesn’t mean that HR leaders can loosen up. It’s the best time to take advantage of the less-turbulent job market and boost retention efforts because if employees resign, it could seem difficult to fill their positions.
It can be concluded that employees are likely to remain in their present jobs, and recruiting skilled candidates could pose a challenge for the companies. Hence, the right thing to do would be to take the help of headhunting firms to find the best talent as per requirements. Also, companies need to understand that if their employees are not quitting, that doesn’t mean they are loving their job. An alarming report from a Gallup poll showed that 59% of the employees are underperforming and disengaged.
These statistics highlight the reasons why organisations shouldn’t get too complacent, even though the job market appears on their side. Check out the three areas that should be addressed to enhance engagement and benefit from the “Big Stay”.
1. Enhance the learning and growth prospects within your organisation
When your employees see that the company is invested in their growth, it makes them loyal and focused on their work. Established organisations that have been doing this for a long time offer internships, mentoring, and apprenticeships, as well as reimbursing course fees. Employers need to make sure that the employees have scope for growth and career pathing. The ideal thing to do here is to take advantage of technology and provide such learning opportunities to the employees.
The good thing is that investing your money in your employees will not only benefit them; it will also put the organisation on the path to long-term success as it provides a solution to skill gaps.
2. Ensure to keep a clear link between performance and recognition
It’s important to recognise good work, as it makes employees feel appreciated for their hard work. Managers should have the habit of expressing gratitude when their team members are bridging gaps with their skillset in a short time. Moreover, employees like to see how their contributions stack up against their colleagues. So it creates healthy competition, which benefits the company indirectly.
Keep in mind to use platforms that help team members score points on a leaderboard, identify team members for awards, and win awards on a weekly, monthly, and yearly basis. Platforms like these also help track the contribution of the team and their members to the growth of the organisation.
3. Boost culture and employee experience
During the Great Resignation, employers took a variety of initiatives to enhance the employee value proposition by taking different approaches. Many amplified their benefits package, while others showed support by allowing them to work flexibly and remotely.
If your company is already going above and beyond that, don’t get complacent. In that case, focus on enhancing the work culture and making the company a great place to work.
For instance, lack of socialisation continues to be an issue in the post-COVID world, and the corporate world is equally impacted by it. So organise events for socialisation and relationship-building to make the work environment more friendly and cooperative.
In conclusion, both candidates and organisations face possibilities as well as obstacles in the constantly changing labour market. Adopting cutting-edge concepts and tactics is crucial for success in this fast-paced setting. In that case, companies may need to contact executive search companies to find the next talent who can drive the organisation’s success.
We can take advantage of the evolving labour landscape by emphasising flexibility, lifelong learning, technological integration, diversity and inclusion, and a comprehensive approach to well-being. The finest strategies for taking advantage of the changing labour market enable us to succeed and make a positive impact on a future that is more resilient, inclusive, and successful, in addition to enabling us to manage its uncertainties. Going forward, the secret to success in this revolutionary moment will be our ability to welcome change and cultivate a culture of ongoing improvement.