White-collar workers are sitting on the quitting sidelines. In 2023, the tech sector alone laid off over 216,000 professionals. Within the past month, Walgreens, Robinhood, Ford, KPMG, Goldman Sachs, Uber, Oracle, Tyson Foods and Grubhub all announced layoffs, according to Forbes.
Unlike during the Great Resignation, workers are staying put, with fewer people quitting their jobs in 2023 compared to previous years. Due to the uncertainty around the long-term implications of inflation and higher costs, interest rate hikes and continual layoffs, college-educated professionals are choosing to hunker down and stay at their current jobs.
Close bonds with co-workers, good health benefits, opportunities for upskilling, learning and career development, a positive company culture and job security are reasons for people to stay where they are rather than risk the chance of a job switch and landing in a bad situation.
Staying Put
In Workhuman’s Human Workplace Index, 86% of respondents indicated that they are happy at their current organization, with over 67% reporting that they plan to stay in their jobs in 2023.
About 36% of workers choose to stay at their current place of employment because they like their company. About one in four employees self-reported that they are staying tight at their company because they receive solid benefits, while more than 13% said the reason they’ll remain is because finding a new job in this current market will be challenging.
Offering learning and career development opportunities can play a significant role in retaining employees. A positive, uplifting company culture helps maintain employees, as workers are likelier to stay at an organization where they feel valued, appreciated and supported. Employees will also stick around longer if they think their company is financially sound.
A good work-life balance is essential to workers, as it allows them to maintain a healthy balance between their personal and professional lives. No one wants to stagnate. If the organization provides a career path forward, workers won’t feel the need to move onto another role outside of the company. A positive relationship with the direct manager and leadership and having a mentor or sponsor will go a long way in keeping people content.
When workers are paid well, they appreciate it. The higher compensation will motivate them to work harder, creating a virtual cycle of increasing responsibilities and pay. Looking into the future, they’ll feel there is a significant financial and career upside if they stick around.
If the company has a corporate mission that aligns with the workers’ viewpoints, it will make them more engaged and stick around longer.
How Companies Can Take Action
To help retain employees, organizations can provide flexibility in their work arrangements, including remote and hybrid options. Companies can enhance wages and offer large bonuses based on production and other perks and amenities to reward and retain workers.
It’s also mission-critical to improve communications with employees to keep them informed about new initiatives, potential problems, product launches and new business ideas.
Leadership should focus on continual career development, retraining, upskilling and offering online courses, mentorships and coaching to retain top talent and keep employees productive and engaged. Post-pandemic, it’s still critical to prioritize employee wellness programs.
Why People Would Quit
People quit their jobs due to a lack of job satisfaction, long hours, inflexible schedules, toxic work culture, limited opportunities for career growth, poor work-life balance, low pay, a company downturn, a merger or corporate restructuring.
People may leave their jobs if they are not finding joy or fulfillment. A toxic work culture that involves harassment, bullying, discrimination and a lack of psychological safety leads to people wanting to quit and find new opportunities elsewhere.
Sometimes workers become bored and desire something new and different. They could feel slighted by being passed over for a much-deserved promotion or a mean-spirited comment made by a senior executive punching down.
Some managers are unaware of or purposefully ignore serious challenges, such as the high cost of childcare or a mandate to return to the office after being allowed to work remotely and purchasing a new home far away from headquarters. The lack of structure, guidance, feedback and support may leave workers feeling lost and alone, making them more susceptible to accepting a job offer from another firm.
These issues can all be successfully addressed if upper management prioritizes looking after their people.
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