The Great Stay: What it Means for the Future of Businesses and Hiring Strategy

Today’s workers are in no rush to seek out new job opportunities, choosing to instead wait out the storm of an uncertain economy, volatile geo-political landscape, and continued AI disruption in the safety of their current roles. According to a recent survey Magnit conducted in partnership with Dynata, only a fourth of currently employed workers are actively applying for new jobs. The rest are sheltering in place until the labor market becomes more hospitable. The broader labor market is describing this “shelter-in-place” mentality as “The Great Stay.”

Looking along generational lines, this Great Stay mindset is even clearer – 40% of Millennials and Gen Z report fear of a recession or layoffs have had a significant impact in keeping them in their current role. Additionally, 47% of millennials and 42% of Gen Z report that a more stable economy would be a must-have for them to feel confident in leaving their current position.

Employers aren’t immune from the same concerns. Organizations are increasingly turning their focus to optimizing the workers they already have as a cost saving measure. In this blog, we’ll explore how the shift toward a shelter-in-place mindset has impacted employee priorities, as well as what it means for the future of the labor market and hiring strategy.

Financial Health Hits Top Priority, Alternative Workforce Models as the Solution

Recession fears still loom large for many, and as a result, workers are looking at their paychecks with newfound scrutiny. For the majority of workers, maintaining financial health has become a determinative factor in weighing a future career move. 58% report more pay, or a higher salary as the top reason they’d consider switching jobs – a finding that holds true across generational lines and annual household income.

As financial health plays a greater role in guiding workers’ career planning, alternative workforce models like contingent or gig work stand as an attractive solution. Traditional work comes with traditional pay schedules and salaries. Alternative models offer a more flexible income stream that enables workers to bolster their paycheck as their unique needs require. Contingent work is a way for savvy employees to maintain their immediate financial health while also setting themselves up for future growth, upward mobility, and ultimately a high salary through experience.

Flexibility as the Key to Remaining Competitive in a Tight Market

The 9-to-5 work structure won’t cut it for most employees anymore. In fact, even though workers remain largely hesitant to leave their current roles, 36% would switch jobs for a more flexible work environment, while 29% would leave for the ability to choose when they work outside of a typical 9-to-5 to better attend to personal needs and responsibilities.

The findings remain similar when looking at what would make workers more likely to stay in their current jobs; flexible benefits and work hours are among the top three reasons, with only a salary increase being rated as more persuasive.

How candidates approach their work and future career growth has fundamentally changed in the post remote work revolution, resulting in fewer voluntary terms and tough competition for top talent. To remain competitive, employers need to stay one step ahead of where candidate preferences sit and adjust their hiring strategy to match. That starts with taking a closer look at the benefits of a contingent workforce model.

Employee Engagement Trends Upward Even as Economic Fears Persist

Employees are currently facing more than their fair share of stress between waves of layoffs and the general unrest in today’s macroeconomic landscape. As such, it’s fair to assume employee engagement has taken a hit in recent months.

And yet, only 2% of workers report feeling actively disengaged at work and just 10% are feeling burnt out but unwilling to change jobs. On the flip side, 50% of workers report feeling either content but challenged or actively engaged and growing, suggesting employees are making the most with the job opportunities at hand, even as the market at large remains uncertain.

Engaged employees are productive, successful employees and it’s never been more important for business leaders to prioritize strong company culture and people-centric infrastructure especially as the labor market rides out The Great Stay. Employees want to see personalized career growth planning (23%), recognition or reward programs 25%), and clearer communication from leadership (21%). Investing in these initiatives develops trust and powers motivation, helping employees feel valued and confident in their work environment, even as the external ecosystem remains turbulent.

See how data analytics can help you gain critical insights into your entire workforce and gain a competitive edge when you download our white paper.

Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of Magnit and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.