The Great Resignation of 2022, characterised by an unprecedented wave of employees voluntarily leaving their jobs, has been the talk of the job market for quite some time. With more than 50 million individuals leaving their positions, it seemed like the employment landscape was forever changed. However, recent developments suggest that the tide may be turning in favor of employers. Let's explore the signs indicating that the Great Resignation, or the Big Quit, may be coming to an end.
- Declining Quit Rates: In June, the number and rate of quits decreased to 3.8 million and 2.4%, respectively. These figures have consistently dwindled and are now nearly identical to the pre-pandemic rates.
- Rising Labor Force Participation: The labor force participation rate for workers aged 25 to 54 plummeted to less than 80% in April 2020, during the height of the pandemic. As of June 2023, this rate has rebounded to 83.5%.
- Decreasing Job Postings: Job openings, a measure of labor demand, dropped to around 9.6 million as of the last day of June, marking the lowest level since April 2021.
- Slower Pay Gains for Job Switchers: According to ADP Pay Insights, the pay increases for workers who switched jobs peaked in June 2022 at over 16%. As of April, this figure had declined to 13.2%, the slowest pace of growth since November 2021.
This phase of the employment landscape is often referred to as the "Big Stay." While employees may not be celebrating this change, it brings good news for employers, especially HR leaders. Retention remains the top source of stress for HR professionals.
However, HR leaders shouldn't become complacent. It's crucial to leverage this less stressful labor market to intensify retention efforts. With the job market leaning towards job retention, companies must work harder to engage their employees, as finding replacements for departing staff could prove challenging.
- Invest in Learning and Development: Demonstrating commitment to employee growth enhances loyalty and engagement. Companies that excel in this area offer diverse learning opportunities, including online and in-person courses, mentoring, internships, and tuition reimbursement. They also ensure that clear career paths and advancement opportunities exist.
- Performance Recognition: Recognising and appreciating employees for their efforts is essential. Modern workers often prefer gamified approaches that link their performance to business goals and their peers. Platforms that allow employees to score points on a leaderboard, nominate colleagues for awards, and win prizes based on performance and teamwork can be highly effective.
- Enhance Culture and Employee Experience: Even with a strong employee value proposition, it's vital to keep enhancing the workplace. Focus on improving connectedness, socialisation, and relationship-building. Prioritise making life easier for your team members with better tools, technologies, and streamlined processes.
While the Great Resignation may be winding down, it's not time for employers to rest on their laurels. The era of the Big Stay offers an opportunity to invest in employee growth, recognition, and a positive work culture. Prioritising employee satisfaction is not just a retention strategy but also a pathway to long-term business success, especially as "quiet quitting" or disengagement remains a prevalent issue in the workforce.
