How will the Great Stay-Put affect your business?

How will the Great Stay-Put affect your business?

It has probably been a while since you last heard talk about the “Great Resignation”, when troves of people voluntarily left their jobs in 2021, sometimes the market altogether, due to low job satisfaction and other related reasons.

The unpredictability of the job market left businesses scrambling to attract top talent, many failing to do so and left rethinking their hiring decisions.

We’re now entering a new period; the “Great Stay-Put” – essentially the complete opposite of the Big Quit, where employees work hard to stay in their company in the face of economic uncertainty. 

Does this mean more loyal employees and a happier human resources department? Let’s look into the potential impact it has for business this year. 

The evolving job market

The Great Stay-Put is part of the cycle that started with the Great Resignation. It all began during the pandemic, when people had to leave their companies en masse as working away from home became impractical. The policy exacerbated existing issues at work, including the need for an adequate work-life balance and a healthy, rewarding work environment. This, predictably, resulted in widespread worker dissatisfaction and further resignations, sometimes in the form of quiet quitting.

Cue an overabundance of available jobs and a scarcity of talent willing to take on traditional job offers. Employers had to innovate and scrambled to hire as much top talent as they could. Naturally, this resulted in multiple redundancies; coupled with the uncertain post-pandemic economy, this spiralled into an era of mass layoffs which was most apparent in the tech sector.

As the economy remains uncertain – thanks to various supply chain shifts and geopolitical factors – those who remain employed through it all have opted to work their way into keeping their jobs at all costs. There are three key factors that contributed to this shift, namely:

  • Job availability is falling. In 2023, U.S. job listings dropped to 9.5 million from 12 million in 2022. The trend holds this year, making it more and more unfeasible for workers to jump ship.
  • Labour shortage in reverse. While there is still a sizeable number of job vacancies worldwide, the number is significantly lower from the past few years, owing to a new crop of job-seekers and employees returning to work.
  • Pay increases. Pay is growing, mainly in response to post-pandemic economic growth and inflation; in fact, employees have been expecting an increase of about 15%.

How the Great Stay-Put impacts your business

Commanding a workforce of employees who are not clamouring to leave and are actively working to stay in the company obviously benefits employers. Advantages include:

  • Increased stability and continuity within the workforce. With fewer resignations, there will be reduced employee turnover, minimising disruptions due to periodic recruitment and the ensuing training.
  • Improved employee morale and productivity. It’s easier to make workers happy: let them keep their job. Of course, that means helping them become more productive members of the company, empowering them and ensuring that they have a healthy work environment that gives them adequate work-life balance.
  • Reduced costs associated with recruitment and onboarding. Reduced recruitment costs for the company, especially since hiring entails further expenses on onboarding new employees. 

Takeaway

In this neo-Great Resignation era, employees value stability over finding better employment. This does not mean that companies should start taking things easy; leaders should treat this as a chance to shine and build their employer brand. Indeed, investing in people and adapting to remote work is a true win-win.

About Sam P

EnterpriseZone Staff Writer

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