Job Applications Surge, But Retaining Top Talent Remains a Challenge

Workday's latest Global Workforce Report reveals that while the job market is shifting in favor of employers, keeping top performers remains a significant hurdle.

While job applications are increasing at four times the rate of new job openings, indicating an "employer's market," voluntary turnover among "high-potential employees" is rising across 75% of industries. The sectors most affected by this trend include communications, media and technology, education, and nonprofits.

This challenge is partly due to rising standards from both employers and employees. According to the report, 72% of hiring managers have raised their requirements for qualifications and experience in new hires, a trend that shows no sign of slowing. Despite the tougher hiring landscape, top talent is still seeking better opportunities more frequently than they did in late 2023.

Even as the job market tilts in favor of employers, workers are becoming more assertive in their expectations. So, what are top performers looking for, and how can employers maintain their key talent?

1. Competitive pay—The past several years saw a surge in compensation across all sectors, and even though the dynamic increase in compensation has slowed, employers need to stay on top of compensation trends to maintain and attract top talent.
2. Clear Career Advancement—Opportunities for career growth are also at the top of the list of demands from top talent. When I ask candidates what their number one reason for leaving their current job is, the answer is almost always a lack of career advancement. Employees want to see a clear and achievable career path with real and attainable growth if they stay with an organization.  
3. Meaningful Work—For organizations to retain their top performers, leaders must ensure that employees find purpose in their roles. Employees who find meaning in their work and feel part of an organization's success are happier, more engaged in their jobs, and, as such, more likely to stay.

Employers can significantly enhance engagement and retention by ensuring employees have competitive pay, real opportunities for growth, and a sense of purpose in their roles. This will help organizations retain the talent essential for their success.