The Big Stay: Why workers are choosing to remain at their jobs
Move over the Great Resignation, the Big Stay has entered the chat. The ‘Big Stay’ or ‘Great Stay’ describes the growing phenomenon of workers remaining in their current jobs for more extended periods of time. This trend has replaced the ‘Great Resignation’, which resulted in a record-breaking four million workers quitting each month in 2021, extending into 2022 and 2023.
In this week’s TalentTech Weekly, we explore rising retention rates and what your organization can do to improve the employee experience. Let's dive into the reasons behind this trend and what it means for both employees and employers!
The Bureau of Labor Statistics reports quits have fallen to their lowest level in three years
The COVID-19 pandemic caused a major disruption in the global labor force, a phenomenon known as the ‘Great Resignation.’ In 2021, more than 47.8 million Americans quit their jobs, followed by an even higher number in 2022, with over 50 million resignations. Various factors, including a reevaluation of work-life balance, the pursuit of better job opportunities, and the newfound acceptance of remote work drove this mass exit from the workforce.
However, in 2024, this trend is shifting. The "Big Stay" or "Great Stay" is emerging, where workers are choosing to remain in their current jobs for longer periods. The Eagle Hill Consulting Employee Retention Index for Q2 2024 highlights this trend with a surge to 105.1, up from 96.8 in the previous quarter. This increase signals a strong likelihood that U.S. workers will stay in their positions through the end of the year.
Supporting this data, the Bureau of Labor Statistics reports that quits have fallen to their lowest level in over three years. In November 2023, only 3.47 million Americans voluntarily left their jobs, a significant decrease from the nearly 4.5 million monthly resignations during the peak of the Great Resignation between November 2021 and April 2022.
The impact of this retention trend varies across industries and demographics. Baby Boomers and Gen Z workers are notably driving this surge. According to Eagle Hill Consulting , Baby Boomer retention sentiment increased significantly to 114 (+27%), making them the generation most likely to stay in their jobs through 2024. Gen Z follows closely, rebounding to 107.4 (+22%) after being the most turnover-prone generation for four consecutive quarters.
This shift towards longer tenures is influenced by increased organizational confidence, improved workplace culture, and better compensation perceptions. Understanding these drivers can help organizations adapt their strategies to enhance employee experience and retention.
The role of organizational confidence
A key factor in the Great Stay is the growing confidence employees have in their organizations and leadership. The Eagle Hill Consulting report shows that the Organizational Confidence indicator reached its highest level to date in Q2 2024.
This increased trust in companies and leadership is accompanied by positive changes in workplace culture and compensation perception. The Culture indicator rose by 7.0 points, while the Compensation indicator increased by 6.6 points, both reaching their highest levels to date.
Job security is of critical importance in the current market. Despite reports of ample opportunities for job seekers, many workers are prioritizing stability. This is particularly true in companies where flexibility and work-life balance are top priorities.
However, it's worth noting that there's a widening gender divide in retention outlook. The Retention Index shows an accelerating disparity of 17.1 points between male and female workers. Men increased more than 14 points to 113, while women increased less than two points to 95.9, signaling that women may pose a larger attrition risk for organizations in the remainder of 2024.
Recommended reading: The importance of workplace culture
Recommended by LinkedIn
Gympass saw a 69% drop in voluntary employee turnover
The role of flexibility in retention cannot be overstated. Recognizing the importance of work-life balance is crucial in cultivating a positive workplace culture. Companies that have embraced flexible work arrangements are seeing significant benefits in employee retention.
For instance, Gympass implemented a "work from where you prefer" policy in 2022, allowing workers to self-select their hybrid work arrangement. This led to a remarkable 69% drop in voluntary employee turnover. Lívia de Bastos Martini , Gympass's chief people officer, emphasized that they prioritize well-being as a key pillar, on par with profits.
“We prioritize well-being as one of the key pillars, the same as you would prioritize, for example, profits,” Lívia de Bastos Martini, chief people officer for Gympass.
The retail sector has also seen similar trends. At Ikea parent Inter IKEA Group , focusing on better pay and more flexibility led to a new low of 25% voluntary turnover by the end of 2023, down from one-third of employees quitting voluntarily a year earlier. Even more dramatic results were seen in a four-day workweek pilot in the U.K., which led to a nearly 40% reduction in turnover over a 14-month period and a 53% increase in job applications.
The hidden risks and opportunities of low turnover
While high retention rates may seem like clear-cut good news for employers, Eagle Hill Consulting warns of potential hidden risks. These include growing labor costs, stagnating employee engagement, difficulty acquiring skills in a tight labor market, and the potential for forced layoffs.
However, this period of stability also presents opportunities. As Jonathan Gove, Eagle Hill's senior human capital director, notes, "This is the ideal time for leaders to strategically address their workforce." Organizations can use this quiet period to develop their people, drive innovation, and position themselves to thrive in a tight talent market.
For HR professionals and business leaders, this is a crucial time to focus on employee development, engagement, and strategic workforce planning. By understanding the factors driving this trend – from organizational confidence to the desire for flexibility – companies can create environments that not only retain employees but also foster growth, innovation, and long-term success.
Download our Ebook: Building an employee-centric workplace through skills development
The DevSkiller Ebook "Building an Employee-Centric Workplace through Skills Development" explores how workplaces can benefit from focusing on their employees. It discusses the positive impact of creating an effective skill development plan on overall organizational success.
Paying attention to the development of your employees can improve employee retention and boost team morale. Assessing your company-wide skills helps identify skill gaps and enables the creation of reskilling and upskilling programs that align with your business needs.
Download the full Ebook now for more insights and in-depth discussion about the advantages of building an employee-centric workplace.
Written by: Alexandra Paasch