Retention Is The New Recruitment

Although the workforce is largely staying put in their current jobs, in what is being referred to as the “Big Stay,” employers may soon experience the “Big Leave” if they fail to take proactive steps to address employee engagement, internal mobility and incentivizing the high-performing, high-potential workers, according to Workday’s recent Hiring Trends Report.

The survey provides large-scale data that offers insights into application rates, open job requisitions and voluntary turnover trends. By analyzing these metrics, businesses can identify emerging hiring and recruiting trends.

In a Zoom video interview with Phil Willburn, vice president of people analytics at Workday—one of the largest enterprise resource planning platforms that provides a wide range of applications and tools to help organizations manage their financial, human resources and information systems—he shared the key takeaways for the hiring trends report.

For white-collar professionals, voluntary turnover rates have declined. Employees who were previously inclined to leave during a strong job market are now deciding to remain where they are. They are playing it safe, putting their heads down, grinding out work and avoiding getting laid off.

However, Willburn maintains that a shift in the power dynamics will put employees back on top again. The Hiring Trends Report already shows a slowdown in the rate of decline in job requisitions in the second half of 2023, indicating that the labor market may see a reversal in its sluggish hiring pace. Once the rate of hiring kicks into high gear, companies risk their best and brightest getting recruited away or leaving for better opportunities.

About 81% of business executives say they’re concerned about losing top performers, according to career opportunity company Guild—a Workday Ventures partner.

What Human Resources And Leadership Need To Do

The Hiring Trends Report found that internal mobility has declined at organizations.

“I suspect that for those companies that haven’t yet built a strong internal mobility program or an internal talent marketplace, when the number of job openings decreased in those companies, so did the internal mobility opportunities,” Willburn stated. “In addition, employees may be less likely to take risks to move internally to a job they haven’t had before if they feel their organization doesn’t support the move or that they will no longer be supported. Many organizations did a great job of listening to their employees’ needs during the pandemic, but that’s a muscle that’s recently atrophied at some companies.”

According to Willburn, it is essential for managers to re-engage by listening to their staff’s needs and feedback about their experience, expectations and overall wellbeing. “This allows employees to feel heard on important topics, including wanting more learning and development opportunities, and feel supported when taking on new challenging opportunities,” he stated.

The people analytics leader advises employers to prioritize internal mobility and invest in their workforce while market conditions are still on their side. Otherwise, they risk a “potential exodus” when the hiring mood improves.

“Employees will continue to want growth and development, even when market conditions are not favorable. This is especially true for a company’s highest performers who are always looking to grow and develop their careers.” Willburn added, “Those companies that continue to provide that growth—even in a less favorable environment—will keep their top talent from looking elsewhere. And when conditions improve, those employees feeling stuck and with limited growth, will be the first to leave. That’s why it’s critical for companies to invest in employee programs like internal mobility and talent marketplaces.”

Business leaders have a tremendous opportunity to seize this moment and uplift their workforces to do their best work, and Willburn urges them to move “quickly and decisively” in optimizing their talent practices, including hiring activities, candidate experiences, performance management practices, workforce planning activities and more. This will give employees the speed and agility needed to perform and remain engaged.

“It’s about identifying, tapping into, and nurturing the skills of your existing workforce and giving employees opportunities to identify the skills they need to round out their own careers and position them to take on new challenges. As leaders, we must focus on encouraging and enabling employees to learn, realize and maximize their skills and have opportunities to apply them,” Willburn said about bringing out the best in talent while building a higher-performing and more engaged workforce.

He warns that companies that have gotten away from this, post-pandemic, will struggle to keep their best talent.