We’re in a white collar recession.
Hiring is down. Retention is up. Is that your excuse to ignore your people?
This linked Atlantic article reinforces what I’ve been saying:
We’re in a white collar recession.
From the article:
Even as the unemployment rate has hovered around 4 percent for more than three years, the pace of hiring has slowed to levels last seen shortly after the Great Recession, when the unemployment rate was nearly twice as high. The percentage of workers voluntarily quitting their jobs to find new ones, a signal of worker power and confidence, has fallen by a third from its peak in 2021 and 2022 to nearly its lowest level in a decade. The labor market is seemingly locked in place.
ZipRecruiter found that nearly every sector has been hit, most especially “professional and business services” white collar jobs.
It’s easy for leaders to use the job market as a reason to back off culture, leadership, career development, and other people-focused efforts in their organization.
That’s a big mistake. Big! Huge!
Here’s why:
- Strong culture and effective leadership lead to higher engagement.
- Higher engagement drives higher performance.
- Career development–even if it’s within role–builds commitment.
- Higher commitment and engagement mean that when the hiring market turns around—which it will—your employees will have greater loyalty.
- Greater loyalty means they’re less likely to leave and take their expertise with them.
But according to Glassdoor, two-thirds of workers feel “stuck” in their current roles.
The historical record shows that when people are hesitant to move or change jobs, productivity falls…innovation declines…
Net: ignoring people, culture, and leadership can hurt engagement and performance.
So if you’re a company leader who thinks the tight market means you can pull back on your people initiatives and save money, think again.
Because the job market will turn. And that great talent you’re taking for granted, the ones who feel stuck with you for now?
They’ll leave.
Looking to increase the cohesion, trust, and impact of your leadership team? Reach out and let’s discuss The Compass Team Experience and how I can help.
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