'The Big Quit Of 2022 Could Be Easing Into The Big Stay Of 2023': What We Know So Far
The Great Resignation is ending and employees are staying put in their current jobs amid what is being termed as "The Big Stay".
A payroll service company has said that workers are sticking to their jobs and it's the current trend. A recent ADP Research Institute posting said that the rate of quitting has fallen significantly. The first three months of 2023 saw a drop of 5% in resignations.
"The Big Quit of 2022 could be easing into the Big Stay of 2023," wrote Nela Richardson, ADP chief economist, in her research institute data summary, as per Forbes.
What Is Great Resignation? Is It Over?
The term was first coined in May 2021, exactly two years ago. The term describes the record number of people leaving their jobs since the pandemic. According to PwC's survey, pay drove many workers into quitting their jobs. Job satisfaction was another reason why workers were increasingly leaving their existing jobs, as per World Economic Forum.
The Great Resignation was a big cultural moment in this world. Richardson now says that the Great Resignation is over, but that doesn't guarantee it will not return. According to John Leer, who leads the global economic research for MorningConsult, the wage growth for job switchers is still 6.9% based on a three-month moving average. It's still ahead of wage growth for "job stayers", which stands at 5.7%. Yes, the gap has reduced, as it was 8.5% for job switchers and 5.9% for job stayers in 2022. Hence Leer said, "It still pays for people to quit."
Having said that, Fed data suggests that the Great Resignation peaked over a year ago and resignations have returned to pre-pandemic levels.
Contributing Factors To 'The Big Stay'
Several factors are contributing to workers becoming more and more cautious in quitting their jobs and engaging in fresh job hunts. The Great Resignation seems to be fading away because of a confluence of economic and geopolitical reasons that have forced companies to exercise cost-cutting practices.
The Shift In Power Dynamics
In light of the changing economic landscape, workers are getting less and less bargaining power with each passing day. Companies are increasingly catering to shareholders while during The Great Resignation, companies were prioritizing workers. Workers are currently stalling their job switching plans and waiting for the world's economy to heal.
Introducing The Big Stay
The new workplace trend based on research by ADP is basically employees choosing to stay with their organization for an extended period of time as opposed to The Great Resignation. The Big Stay is reducing voluntary turnover which is exactly what the businesses want. In another survey conducted by Deloitte, it was seen that 85% of executives rated engagement as an important 38% or very important 48% priority for their companies. So to make sure this stays, the companies have to foster engagement, belongingness, and loyalty. In addition to these, providing rewards like bonuses, and flexible work are also some ways in which The Big Stay can be prolonged.