Despite the threat of a global recession, research from the Sixth Edition of our Talent Index report shows that 50% of workers are still considering leaving their jobs within the next 12 months (down slightly from 53% in our previous Talent Index – Fifth Edition).
Our research revealed some key themes that help explain why employees are quitting (even during times of economic uncertainty). Some of the most common responses we received were around the desire for better pay, the issue of poor management, and a lack of internal opportunities.
Employees are feeling the tighter economy
Economic conditions are tightening around the world and consumers are feeling the burden of inflation and an increased cost of living. In anticipation of a recession, some employers have slowed their hiring efforts, and others have chosen to cancel pay raises in an effort to cut costs. Perhaps it comes as no surprise that employees are quitting their jobs if they are not being given pay raises (especially if they are confident they can be paid more elsewhere).
When asked what factors contribute to companies having retention issues, 41% said it was the lack of salary increases or bonuses. While there are often several factors that employees consider before leaving a job, it seems that during this uncertain economic climate, the lack of pay increases and the lack of advancement opportunities are near the top of the list.
With half of employees either looking for a new job or planning to look for a new job within the next year, employers need to figure out how to retain their talent and keep employees engaged long term. 22% of those surveyed said they were interested in changing careers altogether. But employees who want to change careers may be happy to fill a new role in a different department within their current organization. Are you considering how easy it is for people to find new opportunities within your company?
To boost retention in these challenging times, consider offering your employees more learning and development opportunities, or even entirely new roles internally based on their skills.
Retaining your top talent
While salary was the number one reason employees cited for wanting to leave their jobs, it certainly wasn’t their only frustration. Poor management, a negative company culture, not enough flexibility, and the lack of career growth opportunities were also popular grievances among the 6,000 employees we asked.
Today’s top talent want their employer to genuinely care about their career development and help support them in working towards their career goals. And, unfortunately, companies are losing talent all too often because of that unmet desire. When we asked employees why companies have retention issues, 22% said it was due to the lack of development opportunities.
Companies that are facing retention challenges need to consider developing an internal mobility strategy, so they can begin filling open roles and staffing short-term projects and gigs with internal talent – while keeping top talent engaged. This may also involve putting extra emphasis on your learning and development programs, which employees also have an appetite for.
69% of Talent Index respondents said they had lost at least one opportunity to upskill or retrain in their current roles, and 17% of that group said it was due to the fact that there is not enough budget (or no budget at all) dedicated to helping employees upskill.
If you’re unsure where to start when building an internal mobility strategy, a Talent Marketplace backed by explainable AI is a good place to start. Talent Marketplaces can help enterprise organizations build robust internal mobility programs to show employees open roles they can apply for internally, as well as share opportunities to learn new skills – keeping them engaged long term.
‘Quiet quitting’ is affecting businesses
Confidence in the economy is declining, so not everyone who is dissatisfied with their workplace will actually leave their jobs. Quiet quitting (the practice of doing only what is required of you and nothing more) is an alternative that many employees are opting for.
Whether or not ‘quiet quitting’ is a warranted response to a changing business world, our research shows that it is having a negative effect on the workplace in general. We asked our survey respondents if quiet quitting has affected their team at work, and 63% said at least one aspect of their work had already been negatively affected by the quiet quitting culture. 27% said their work culture has drastically changed (negatively) due to quiet quitting.
Another 20% of people said quiet quitting makes them want to leave their company – which is conceivable when you think about how much work is potentially left undone when people choose to do the bare minimum – putting even more pressure on other team members to take on new tasks.
This has the potential to create a vicious cycle in the workplace, because quiet quitters may already have one foot out the door. And the employees who are still going above and beyond may become burned out quickly, which can lead to even more dissatisfaction and eventually, more resignations.
The bottom line is, for those who are planning to quit or who are disengaged, something is missing. Whether it’s the lack of flexibility, a negative culture, poor management, or the lack of internal opportunities, it’s important for employers to honestly assess each of these areas to determine where their issues lie, and how they can address them.
If internal career options are not already a strategic priority within your organization, consider starting there. The benefits of talent mobility are multifold – more engaged employees, faster time to hire, and lower cost per hire (which is particularly attractive to business leaders who are preparing for a leaner economic season).
By implementing an internal mobility strategy with a Talent Marketplace, you will not only save money on external sourcing and hiring costs, but you will also have a better view on what skills you have available in your organization, and which employees have the desire to learn new skills and take on new roles.