Low staff turnover may be giving employers a false sense of security, with new research suggesting many employees are staying put because moving jobs feels too risky.
Almost two-thirds (64 per cent) of UK knowledge workers feel leaving their job is too much of a risk, rising to 68 per cent among Gen Z, according to HP’s Work Relationship Index. Yet just 26 per cent report having a healthy relationship with work.
Jill Summers, chief of professional services at talent solutions provider Clevry said: “People are making a rational calculation based on what they can see around them. When hiring slows and redundancy headlines keep coming, the known risks of staying, such as a role that's stagnating or a manager who isn't a great fit, can look far smaller than the unknown risks of moving. What looks like loyalty is often risk aversion.”
So how can employers tell whether people are genuinely engaged or simply ‘job hugging’?
1. People contribute rather than simply comply
Headcount may be stable, but employers should look at what people are doing while they are there.
Employees who are engaged are more likely to speak up with ideas and concerns, contribute discretionary effort and take an active interest in the organisation’s success.
By contrast, someone who feels stuck may continue doing what is required while gradually withdrawing their energy and enthusiasm.
2. They can see opportunities to grow
Someone who cannot see a future with their employer but believes changing jobs is too risky may stay considerably longer than they otherwise would.
Employers should therefore look at whether people are developing, taking on new challenges and considering internal opportunities.
Low resignation rates mean little if employees are simply waiting for the external market to improve.
3. They are engaging with change
HP found 82 per cent of UK knowledge workers are experiencing organisational change, making employees’ response to change another important indicator.
Jill said: “Change that is done to people rather than with them erodes the sense of control and purpose that underpins a healthy relationship with work.”
Employers should consider whether people understand why change is happening, feel involved in it and have the support they need to adapt.
4. Their strengths are being used
People do their best work when their role matches their strengths, motivations and working style.
But in a difficult labour market, people may remain in jobs that are a poor fit because moving feels like the greater risk.
Employers should look at whether people’s capabilities are being fully used and use objective, evidence-based insight into strengths and motivations to inform development and internal moves.
5. Staying feels like a choice
Ultimately, employers need to understand why people are staying, rather than simply measuring whether they leave.
Jill said: “Don't mistake retention for engagement. Low turnover is not evidence of a healthy culture, so organisations should measure how people actually feel about their work, their managers and the pace of change.
“Job hugging masks flight risk. When confidence returns and the market opens up, organisations that haven't addressed the underlying issues may see a wave of departures, often among the people with the most options.
“When people are well matched to their work and feel they have room to grow, staying becomes a choice rather than a default, and that is when you see the commitment, productivity and resilience that organisations need.”
For more information please visit: www.clevry.com
Ends
Editors notes
Clevry is a talent solutions provider combining psychometric assessments and data-driven insight with human expertise to help organisations hire, develop and retain high-performing teams.
Clevry's proprietary assessment methodology helps organisations identify workplace potential, providing additional insight alongside candidates' experience to support better hiring decisions and long-term performance.
The company supports organisations globally with services including talent assessment, recruitment and organisational development.
For more information please visit: www.clevry.com
