Is the ‘big stay’ over?

As the economy begins to recover, we asked HR leaders whether the ‘big stay’ – a time when employee turnover and vacancies decreased – is really over.

Around half (49%) of UK employers reported that they expect employee churn to increase over the next 12 months, research by HR software Personio showed (27 August). Six in 10 (60%) employers surveyed also said that they had noticed a drop in staff engagement.

However, recruitment firm Robert Walters has suggested that employees are cautious of moving jobs due to fears of a lack of security. Research conducted by Robert Walters found that 71% of professionals had been deterred from looking for a new job by worries around job security in a new firm.

Becky Wallace, head of people at Learn Upon, told HR magazine that there were signs of the ‘big stay’ ending.

“These latest figures make clear that there is still a lot of uncertainty around what the job market will look like over the coming year, but the market is already showing some signs that attrition levels will rise again,” she said.

“Whilst the ‘big stay’ has been a huge win for HR leaders, who have been working hard to retain staff following years of increased attrition, it has never meant that they were able to take their staff for granted.

“Even when employees are staying put, it is vital that they are given proper support from their organisation that keeps them engaged, satisfied and productive.”

Personio’s research also revealed that 49% of UK employees claimed the improved economy will motivate them to leave their jobs. A third (33%) of employees said that they would be willing to take a pay cut for a more interesting and engaging opportunity.

“What’s evident is that if employees have one foot out the door, they are likely to be less engaged and motivated to do their best work,” said Lenke Taylor, chief people officer at HR software Personio, speaking to HR magazine.

She advised employers to focus on improving employee engagement to prevent attrition rates soaring over the coming months.

Taylor continued: “Employers need to be proactive about improving their employee experience, and through that, improve not just talent retention, but productivity too.

“The best employers are listening to their employees, understanding what’s changing, and working to boost engagement.”

Robert Walters’ survey found that 75% of companies were trying to be more transparent about their company’s performance, to attract professionals concerned about stability. However, 79% of employers saw a decline in the acceptance of job offers this year.

Employers should communicate their company’s performance to attract potential candidates, noted Lucy Bisset, director of Robert Walters North West.

Speaking to HR magazine, she said: “To attract candidates worried about job stability, employers must be more open about company health. This doesn’t mean divulging sensitive information but offering guidance on things like future plans for continued growth and long-term visions/goals.

“They can go further in discussing what individual progression looks like at the company, highlighting opportunities for career advancement and discussing how professionals’ can carve out a fulfilling career within their organisation.

“Essentially, the key thing here is for employers to effectively communicate their company’s mission, culture, future goals and how prospective employees can integrate into and contribute towards this.”

Robert Walters surveyed 2,000 white-collar professionals in the UK between June and July 2024. Personio commissioned Censuswide to survey 2,002 UK employees and 1,001 HR decision makers between 8 April and 1 May 2024. Both reports were published on 27 August.

HR Magazine – Honey Wyatt