How Employee Loyalty is Evolving in the Current Market

A new study finds that 51% of employees are watching for or actively seeking new job opportunities, which is the most since 2015. Employees prioritize greater work-life balance (59%), significant increases in their income (54%), and great job stability (54%). This data highlights a serious retention risk for HR, emphasizing the need to address employees' evolving priorities around work-life balance, competitive compensation, and job stability. With over half of employees considering new opportunities, HR must take proactive steps to enhance the employee experience — offering flexible work arrangements, ensuring fair and meaningful pay increases, and fostering a culture of transparency and security around the company’s future. It also calls for deeper engagement efforts, like regular check-ins, career development support, and well-being initiatives, to strengthen employee satisfaction and loyalty. By listening to employee needs and acting swiftly, HR can reduce turnover and build a more committed, motivated workforce.

Retention Is Dead...Optimize for Tenure Instead A manager once told me about an exit interview that stuck with her. A top performer was leaving after just two years. They had invested in, mentored, and promoted this person. Frustrated, she asked him, “What could we have done to make you stay?” His answer? “Nothing. This was never a forever job. But in the time I was here I think I made a real impact.” That conversation flipped a switch for her. They had been measuring success by how long people stayed when they should have been measuring the value created while they were there. Here's the thing: Job security is at an all-time low, and employees aren’t sticking around like they used to. The median tenure for U.S. workers dropped to 3.9 years in 2024, the lowest in over two decades. Yet companies still chase retention like it’s the holy grail. Throwing perks, engagement surveys, and bonuses at employees, hoping they’ll stay just a little longer. But the reality? People aren’t leaving because they’re disengaged. They’re leaving because work is evolving faster than most companies are. They’re moving toward new #skills, new #challenges, and new #opportunities that better align with their goals. So, what if instead of trying to hold onto talent indefinitely, we optimized for the time we do have? A Smarter Workforce Strategy ✅ Design for Agility, Not Permanence – Imagine your workforce as a relay race, not a lifelong contract. Structure roles, projects, and career paths knowing that employees may only be with you for a season. ✅ Maximize Skill Development – Employees aren’t just looking for paychecks. They’re looking for growth. Focus on giving them experiences and skills that make their time with you meaningful. ✅ Redefine Success – Instead of measuring how long people stay, measure what they accomplish while they’re there. A short but impactful tenure can be more valuable than years of coasting. That manager? They stopped seeing departures as failures. Instead, they started asking, “Did we help them do their best work while they were here?” Because it’s not about keeping people forever. It’s about helping them make an impact while they’re with you. How is your company adapting to this shift? Let’s talk. Catapaultt ------------------------------- Did you find this post helpful? Pay it forward and share with a friend.

In 2025, the job market is experiencing a notable decline in candidate confidence. A recent survey revealed that 81% of workers are concerned about potential job loss this year, with 76% anticipating an increase in layoffs and 63% expecting more business closures compared to 2024. This pervasive anxiety has led to a trend dubbed "The Great Stay," where employees opt to remain in their current positions due to fears of job instability and limited opportunities elsewhere. This shift has resulted in decreased quit rates, indicating a significant change from the high turnover seen during the Great Resignation. Despite these concerns, there are signs of renewed optimism among job seekers. The Vaco Talent Pulse Report indicates that confidence in job security, financial stability, and career advancement is beginning to rebound. Additionally, data from Universum highlights that 43% of employees planning to leave their current roles prioritize training and development, suggesting that opportunities for growth remain a critical factor in employment decisions. To attract and retain talent in this evolving landscape, companies should focus on several key strategies. Investing in comprehensive training and development programs can address employees' desires for career growth and skill enhancement. Fostering a supportive work environment that prioritizes employee well-being and mental health can alleviate job-related anxieties. Additionally, offering competitive compensation packages and clear pathways for advancement can enhance job satisfaction and loyalty. By implementing these approaches, organizations can navigate the challenges of the current job market and build a resilient, committed workforce. #Hiring #Jobs #TalentAcquisition #TheGreatStay #Consulting Sources: PRWeb, Dahl Consulting, Litmos, MarketWatch, Hunt Scanlon Media, PR Newswire and Universum

Employee: “I’m resigning.” Manager: “But you’re one of our most valuable people—why now?” Employee: “Because someone else saw my worth before I had to wave a white flag.” 48 hours later… Manager: “We’ll match the offer—please stay.” Employee: “Appreciate it. But I’ve already joined a company that didn’t need a resignation letter to recognize my value.” It’s a cycle that too many companies still find themselves in, especially in 2025 where high performers don’t wait for validation. In the past three months, we've witnessed significant shifts in the employment landscape: AI Integration in the Workplace: The rapid adoption of AI is transforming job roles, particularly affecting junior positions by automating entry-level tasks. Wage Stagnation Concerns: Many workers report that stagnant wages are hindering their ability to achieve personal milestones, leading to increased financial stress and job dissatisfaction. Minimum Wage Increases: At the start of 2025, 21 states implemented minimum wage hikes, reflecting efforts to address wage stagnation and improve worker retention. These developments underscore the urgent need for organizations to proactively recognize and invest in their top talent. The smartest companies are rethinking: Recognition—Not just compensation, but career growth, flexibility, and purpose. Trust—Making employees feel valued before they feel unseen. Investment—Leaders who mentor, develop, and advocate for their people before competitors do. The companies leading the way are the ones investing in their people before they feel undervalued.

You can't fight the data. Retention and talent are top worries that keep CEOs up at night. But the data points the way to a solution. Recent Oliver Wyman data found this: - 70% of employees who say they're loyal to their employer are still job-hunting (mostly passively) - Nearly 50% have side hustles - 38% are unhappy with the lack of clarity about career advancement - 85% prefer hybrid or remote work The formula is clear. What employees want: 1. a strong reason to work / stay with you 2. higher pay to not need a side hustle 3. a clear path to career progression 4. flexible work options If you offer those four things, you WILL find it easier to attract talent and retain it. Now let's drill down into GenZ. In 2020, Gen Z made up only 6.1% of the workforce (Purdue Global). By last year, it was 15% (Oliver Wyman). By 2025, it'll be 27% (OECD). Doubling every two years currently 👀. If you don't retain your GenZ talent, that's not going to bode well for your business, especially when 21% of Americans will be of retirement age by 2030. Use data to inform your talent attraction and talent retention strategy, or you simply will not be competitive within your industry.

As always, my friends and former workmates Ashley Goldsmith and Phil Willburn have contributed to fantastic insights into navigating the shifting world of work in Workday's 2024 Global Workforce Report, released this morning. The latest Global Workforce Report from Workday reveals a job market that increasingly favors employers, yet top talent is more determined than ever to seek better opportunities. The report highlights some critical trends shaping the future of work: The Job Hunt is Tougher: With job applications growing 4x faster than job openings, standing out in a crowded market is becoming a significant challenge. Top Performers Are on the Move: Despite the competitive landscape, high-potential employees are quitting at higher rates across 75% of industries. It’s clear that retaining talent requires more than just a paycheck. AI is Transforming Talent Acquisition: As 77% of organizations plan to ramp up their use of AI in hiring, the tools we use to find and retain talent are evolving rapidly. Leaders see AI as a game-changer for fairness and efficiency in recruitment. Meaningful Work Drives Engagement: Employees who find their work meaningful report feeling 37% more accomplished, even under challenging conditions. This underscores the importance of aligning roles with purpose to enhance engagement and retention. Based on the report, my good friend and Workday’s chief people officer, Ashley Goldsmith, sees "the job market is shifting to favor employers, but, at the same time, workers are getting more confident in what they want—competitive pay, clear growth paths, and meaningful work. It's up to leaders to help employees find meaning in their work in order to retain the high-performing people who drive their organization's success." The report contains a case study of Workday’s own experience creating the “Work from Almost Anywhere” program to strike the right productivity-flexibility balance, where Phil Willburn and team found that "connecting and collaborating with colleagues is crucial not only for the health of the business but also for their Workmates’ social-emotional well-being." We are very likely experiencing a fundamental resetting of expectations that will drive the next world of work, resulting in a growing chasm between the progressive and prepared and the retro and reactive. Thank you, Workday, for sharing these important insights. 

“Employees aren’t loyal anymore.” This generalization is probably true, but let’s consider why that is. Workers used to have job security. You could dedicate your professional life to a company for 20, 30, or even 40+ years, and as long as you put in the effort, you’d be rewarded with raises, bonuses, training, promotions, and even a pension when you retired. And now… All of that is gone. Companies lay people off without a second thought. Executives make sweeping cuts and give out measly 3-5% annual merit increases citing market conditions, while simultaneously receiving millions in stock options and working employees to the bone for shareholder profit growth. People are tired. COVID in particular changed workers’ mentalities about work/life balance, rewards, and priorities. People realized what really mattered to them and caught a glimpse of what life could be like with more flexibility and less micromanagement. Unfortunately, we are seeing a return to the old way of doing things with RTO mandates, holiday season layoffs, and a complete disregard for the mental health and wellbeing of workers. This is forcing people to look for new opportunities outside of their current organizations if they ever hope to advance their careers or keep their earnings on par with the pace of inflation. Job hopping then contributes to a loss of organizational momentum for companies due to lack of tenure in their workforce. All of the short-term cost savings of lean teams and mediocre compensation practices eventually translates to higher costs from attrition, product delays, and workplace conflicts stemming from burnout and dissatisfaction. It’s just not worth it. Treat your people right. Do better!

Why Are Employees Resigning Without Another Offer in Hand? Just a few years ago, most employees wouldn’t dare resign without securing a new job first. But today, a noticeable shift is taking place—more professionals are choosing to leave their jobs without a backup plan. So, what’s driving this change? 1️⃣ Evolving Workplace Expectations Employees now prioritize work-life balance, mental well-being, and job satisfaction over traditional job security. 2️⃣ Increased Confidence in the Job Market With the rise of freelancing, remote work, and skill-based hiring, people believe they can land new opportunities quickly. 3️⃣ Generational Mindset Shifts Gen Z and Millennials value growth, flexibility, and meaningful work over long-term stability in a single organization. 4️⃣ Post-Pandemic Perspective The pandemic reshaped priorities. Employees now seek personal fulfillment—even if it means taking a career break. 5️⃣ Toxic Work Environments Employees won’t tolerate feeling undervalued or unheard. They’d rather leave than compromise their happiness or well-being. For HR professionals, this trend is a wake-up call. To retain talent, organizations must double down on employee engagement, foster career growth, and cultivate a positive work culture. Have you noticed this trend in your workplace? What are your thoughts on addressing it? Let’s discuss in the comments. #HRInsights #WorkplaceTrends #EmployeeRetention #GreatResignation #WorkCulture #EmployeeEngagement #FutureOfWork #GenZWorkCulture #WorkLifeBalance #CareerGrowth

I was interested to read McKinsey & Company’s recent research on generations in the workplace and the reasons why workers leave jobs AND why they stay at an organization. The reasons why employees leave a job show a remarkable similarity amongst all generations: inadequate compensation, lack of career development and advancement, and uncaring leadership. Despite the broad generational similarities around why people leave a job, the reasons to stay seem to vary much more by generational cohort.   Gen Z’ers, for example, rank flexibility, career development, meaningful work, and a safe, supportive work environment as more important factors than compensation. These results align with research we conducted at Sodexo six years ago which revealed that compensation was the least compelling engagement factor for this generational cohort. So despite some stereotypes indicating that the younger generations care more about money and compensation, the empirical research from both McKinsey today, and the earlier research we conducted, reveal a generational cohort motivated by much more than just money. To win the competition for the best talent, it is important for leaders to develop retention strategies based on generational cohort research and data.  As the research concludes: ‘Leaders must treat their current and prospective employees as unique human beings, rather than as members of a demographic segment.’ Please do share your thoughts around the retention strategies for multiple generational cohorts in the workplace – I would be interested to hear more about your experiences. You can read McKinsey & Company’s research report here: https://lnkd.in/eMihjnNa #Generations #Recruitment #Retention #DEI #DiversityEquityInclusion