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Subscribe here10. December 2024
Why is everyone talking about… The Great Stay?
Welcome to Personio Pulse: This Week in HR, where each week we take a look at the latest trends in the world of work, what you need to know about them, and what they mean for you as an HR professional.
This week, we’re unpacking the recent phenomenon of the “Great Stay” amongst employees, and how it might be sounding a pretty clear warning for employee engagement and satisfaction.
What you need to know
Does “The Great Resignation” ring any bells? The trend of employees leaving en masse in the post-pandemic era has seemingly come to a close, with quit rates in the United States falling to 1.9% in September — a trend similarly mirrored across Europe and the UK. The result has been dubbed the “Great Stay.”
What we’re seeing is that the evolution of the Great Stay may become a key issue for organisations as they head into 2025. The latest data from Glassdoor found that roughly 65% of workers feel “stuck” in their current roles. While retention may be hitting historic highs, that might be coming at a cost to organisations — is the Great Stay becoming more like the “Great Stuck”?
What others are saying about it
The Great Stay potentially reveals that retention isn’t a solely positive metric. Susan LaMonica, Chief Human Resources Officer at Citizens, explains in conversation with Forbes: “While the immediate financial benefits of employee retention, such as reduced recruiting, hiring and onboarding costs, can be significant… Companies that focus solely on cost savings without investing in employee development… risk creating stagnation, which can lead to decreased motivation, innovation and overall performance, ultimately negating the benefits of retention.”
The solution may lie somewhere between job satisfaction and career development. “When people have the opportunity to stretch themselves, great things can happen…This starts with a mindset shift. By becoming more receptive to candidates targeting a career or industry switch, organisations will have to truly understand people’s motivations and aspirations, which can unlock new ways to identify overlooked talent,” Fritz Singer, Personio’s VP of Talent, explains in our Workforce Pulse.
What that means for you
The Great Stay is a complex set of circumstances, and ignoring it puts employee engagement, satisfaction, and business performance at risk. To alleviate these pains, HR teams should focus on fostering both job satisfaction and development in the following ways:
Encourage autonomous career growth: Provide opportunities for employees to ‘stretch themselves’ and explore new roles or projects — and have clear career progression frameworks to help them get there. This can lead to increased motivation and innovation within teams.
Adopt a more flexible mindset: Be open to candidates looking to switch careers or industries. Understanding the importance of ‘squiggly careers’ can help your teams create new pathways for development, allowing employees to do new things from within your organisation.
Balance retention with satisfaction: While retention rates are important, they should not overshadow employee satisfaction. Strive for a balance that promotes both stability and a positive work environment. Start by establishing a benchmark for your employee net promoter score (eNPS).
What else should I read?
That's all for this week's edition of Personio Pulse: This Week in HR. Check back next week as we continue to dissect the latest trends impacting the ways we work.
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Max Specht
Max Specht is a Workplace Trends Expert at Personio. He enjoys writing and discussing topics related to employee engagement, leadership development, HR technologies and how teams can respond to the latest trends.
