Companies are grappling with a new issue post Great Resignation: Not enough employees are quitting.
A year ago, this trend would have been welcomed, as companies struggled with high turnover. But in some cases, executives have been caught by surprise by the rate at which market dynamics have flipped, The Wall Street Journal reported Nov. 6.
"The attrition level is going down, that's for sure," Denis Machuel, chief executive of Adecco Group, a global staffing firm that works with large employers, told the news outlet. "People feel it's probably a bit cold outside with the macroeconomics not being so good. And with this last-in, first-out typical scheme, they're more likely to stay in their current role." A number of recent reports have reflected employees' increased desire to stay put in their current roles. For instance, an index report from Glassdoor found employee anxiety about layoffs is at the highest level since July 2020.
Every quarter, software provider ServiceNow uses machine learning to predict the number of employees who might step down. The actual levels of voluntary turnover have been below the models' predictions throughout the year, a leader at the company told WSJ.
This is proving to be a challenge for some large employers. With voluntary turnover lower than expected, some companies are finding themselves over budget in certain areas. In turn, leaders are having to make determinations about what projects to potentially postpone or whether to cut additional staff by the end of the year. Another challenge is keeping top talent engaged while there are fewer movement opportunities within a company.
As of September, the nation's quits rate remained at just over 2% for the third month straight. The rate hit a peak of 3% in April 2022.
In healthcare, job cuts are up 109% compared to last year, according to a recent report from Challenger, Gray & Christmas.