Employers are currently facing a host of challenges – from tightening budgets and hiring freezes, to disengaged employees and attrition.
The post-COVID “great resignation” prompted millions of people around the world to change jobs and, despite the looming recession, it seems that high levels of employee churn will continue for the foreseeable future. And the job market is still strong, with the unemployment rate hitting a 50-year low in the US. In the UK, the number of job postings are 50% higher heading into 2023, compared to the pre-pandemic baseline from February 2020.
The talent market is still going through a “great reassessment” and employees are weighing their options in light of the current economic conditions. While many businesses are taking measures to cut costs, employees are still cautiously optimistic about today’s job market, and many are (at least) considering leaving their jobs within a year.
Talent is every company’s greatest asset. As an employer, you can’t afford to lose your top talent. Organizations must make a concerted effort to keep their employees engaged and motivated, so they have the talent and skills they need to be successful in the next season of growth.
2023 will still see high workforce churn
You may ask why that is, considering the volatile economy – and that does play a role. 38% of those we asked said they had at least some concern that they would be laid off from their current company. And of those who are worried about layoffs, 28% said the fear of redundancy is more likely to lead them to look for another job (perhaps with more security) – a proactive measure in case their current employer were to eliminate their position.
Despite fears of layoffs, workers are still pretty confident they can find new roles elsewhere. 31% of respondents felt they could secure a new job within three months, and another 41% said they were confident that they could find a new role within six months.
With high inflation and an increased cost of living around the world, a higher salary is a huge incentive for people to change jobs right now. 26% of the people we asked said they would consider leaving their role due to the lack of salary increases from their current employer, and 29% said that higher pay at other employers of interest would be motivation to leave.
Today’s workers are reassessing their careers, salaries, working conditions and learning opportunities. And if employers aren’t careful, they will likely continue to lose valuable talent in the next year.
Regret and retention
We mentioned before that millions of people changed jobs during and after the pandemic – but not all of those workers are happy with their decision.
56% of people in our Talent Index study said they had left a job in the past due to unhappiness/unfulfillment at the company, and later gone on to regret it. However, it is worth noting that workers in the UK were less likely to feel this way compared to workers in the US (50% vs. 60%).
Perhaps, instead of a new employer, these dissatisfied and disengaged employees just need a new opportunity from their current employer. This is where a Talent Mobility program backed by an AI-driven Talent Marketplace comes in handy.
A Talent Marketplace allows employees to view open roles, gigs and development opportunities that are available internally (and can highlight the opportunities that they would be a good fit for).
A new internal role or gig might just be enough to re-engage your top talent and keep them from losing motivation, or leaving your company for a competing employer.
Employees want support and flexibility
Wellbeing and work/life balance are hugely important parts of the employee experience, and employers need to do their part to ensure employees are taken care of. For instance, many companies have announced that they are bringing employees back to the office full time this year.
In our Talent Index survey, we found that 17% of workers said that the lack of flexibility (such as hybrid or remote working) would be a reason they would leave their current job within 12 months. And 26% said this was one of the most important factors they would look for in a new employer.
During a time when employers are focused on cutting costs and unlocking efficiencies, employee wellbeing needs to remain top of mind for business leaders if they want to engage (and retain) talent.
As the great reassessment continues, employees are continuing to upskill and reskill – making them prime candidates for both internal (and external) roles. And there’s a clear appetite for upskilling opportunities in the workplace. 27% of our Talent Index survey respondents said they are already participating in a learning and development program, and another 34% said they are very eager to do so.
With internal mobility, employers can reap the cost-saving benefits of hiring internally, while filling skills gaps and keeping talent engaged. And, in the same vein, disengaged employees get the new role or upskilling opportunity they are looking for, without having to onboard as a brand new employee elsewhere.
There are many ways that employers can keep talent engaged and motivated while juggling challenges such as a tough economy coupled with a tight talent market. We share more insights into what today’s talent needs from their employers to stay engaged in our Talent Index Seventh Edition.