More employees are deciding to stick with their current employers in a new workplace trend dubbed by experts as “job hugging” – and this may not always be good for organisations.
Data from Eagle Hill Consulting showed an upward trend in its retention index since the first quarter, meaning workers likely will remain in their jobs over the next six months.
The latest data also revealed a sharp decline in employees’ perceptions of the external job market, indicating a sense of pessimism about employment opportunities outside their current employers.
‘Job hugging’ phenomenon
Experts at Korn Ferry said the findings indicate that “more and more employees are displaying what is colloquially known as ‘job hugging.'”
Even high-level employees are also practising the behaviour, as they stay put unless faced by an overwhelming compensation benefit from an external option.
“Right now, top performers are only leaving if they’re miserable in their roles,” said Stacy DeCesaro, managing consultant at Korn Ferry, in the insights.
The phenomenon is the opposite of the Great Resignation that employers had suffered during the pandemic, which saw an employee exodus amid a variety of factors.
Korn Ferry experts said the unpredictable and unprecedented global events, combined with looming AI disruption, are making employees unsure and holding on to their current employers.
While this may be good for retention, Matt Bohn, senior client partner at Korn Ferry, pointed out that others are remaining in holding patterns instead of developing their skills and careers, blocking up-and-coming employees.
“Firms run the risk of becoming comfortable perches from which workers can jump when the time’s right,” Bohn warned. “That’s the danger of this job market.”
What are the benefits
But job hugging could also deliver opportunities for employers as well, according to the experts.
Without the need to compete with external salary offers, they noted organisations are less likely to increase wages for their employees.
Tom McMullen, senior client partner at Korn Ferry, added that this also means less turnover, recruitment, and training costs for organisations.
Dennis Deans, global human resources business partner at Korn Ferry, said this also presents employers an opportunity to develop talent and introduce more internal career paths.
Deans said the key to capitalising on the stagnant job market is to implement programmes for internal development and performance management.
Source – https://www.hcamag.com/ca/news/general/job-hugging-more-employees-deciding-to-stay-put/546615