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The Big Stay: Why workers are opting to stay put rather than quit

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Summary

The labor market has been drastically affected by the pandemic, leading to an increase in job quitting, dubbed "The Great Resignation" and "The Big Quit". However, the quit rate has since decreased, and job postings have gone down 20% from a year ago. This is due to the uncertainty of the pandemic leading to people wanting stability, layoffs in tech, and employers not being able to understand workers' personal struggles. People are now looking to stay in place and seek growth opportunities internally, and financial gains from switching jobs are not as prominent. Workers are looking for pay that is in line with their cost of living, and are more focused on connectedness with their organization than money.

Q&As

What is the "Great Resignation" and what has been its effect on job openings?
The "Great Resignation" is the phenomenon of people quitting their jobs in large numbers due to the COVID-19 pandemic. This has resulted in a decrease in job openings, with 9.6 million job openings posted in March of this year, down from more than 12 million in March 2022.

How has the COVID-19 pandemic caused workers to crave stability?
The COVID-19 pandemic has caused workers to crave stability due to layoffs, especially in tech, and the personal struggles they have faced. This has caused workers to look for growth opportunities internally rather than externally.

What has been the average pay increase for workers who switch jobs?
The average pay increase for workers who switch jobs peaked in June 2022 at 16.4%, but in April 2023 it was 13.2%.

How have workers' expectations for pay changed in the last year?
Workers are looking for pay in line with higher cost of living, with 62% saying they received a raise in the last year, with increases averaging 6.4%. 44% of workers think they’re underpaid at their job, and 83% expect a raise in 2023.

What are workers looking for in terms of compensation and connectedness to their organization?
Workers are looking for compensation that is aligned with the time they are putting into their work, as well as a feeling of connectedness to their organization.

AI Comments

👍 This article does a great job of exploring the reasons why many workers are opting to stay in their current jobs rather than switch, even when opportunities for higher pay are available. It presents a well-rounded and nuanced perspective on the current job market, drawing on data from the Bureau of Labor Statistics, ADP Research Institute, and real-life insights from talent professionals.

👎 This article doesn't provide any concrete advice for how employers should respond to the growing desire among workers for stability and connectedness in the workplace. It also doesn't address how the "Big Stay" might affect workers' job satisfaction or career growth in the long run.

AI Discussion

Me: It's talking about why workers are opting to stay put rather than quit. It looks like the "Great Resignation" that was happening before the pandemic has slowed down, as the quit rate has decreased and fewer jobs are being posted. It looks like workers are starting to crave stability, and the uncertainty of the pandemic has made them less likely to switch jobs. Plus, financial gains from switching jobs aren't as high as they used to be.

Friend: That makes sense. It's definitely a tough job market out there right now, so I can see why people would want to stay put. But it's also a shame, because there are probably a lot of people out there who could really benefit from a change in their career.

Me: Definitely. I think it's important for employers to recognize this and be flexible and understanding of their employee's needs, especially during this time. They also should be open to providing pay increases and other incentives to keep their employees engaged and motivated.

Action items

Create an open and supportive workplace culture that encourages employees to be open about their physical and mental health.
Offer employees opportunities for growth and development within the organization.
Provide competitive compensation packages that reflect the cost of living and the value of the employee's work.

Technical terms

The Great Resignation: A term used to describe the large number of people who quit their jobs during the COVID-19 pandemic.
The Big Quit: Another term used to describe the large number of people who quit their jobs during the COVID-19 pandemic.
Quit Rate: The percentage of people who quit their jobs in a given month.
ADP Research Institute: A research institute that tracks job postings and other labor market data.
Talent Professional: A person who specializes in recruiting, hiring, and managing employees.
Work-From-Home: A type of arrangement where employees work remotely from their homes.
Hybrid Arrangements: A type of arrangement where employees work both remotely and in the office.
U.S. Bureau of Labor Statistics: A government agency that collects and publishes labor market data.
Job Postings: A listing of available jobs.
ADP Pay Insights: A data set from the ADP Research Institute that tracks pay increases for workers who switch jobs.