Dive Brief:
- The number of job applications is growing four times faster than job openings, creating an “employer’s market,” according to Workday’s Global Workforce Report, released Tuesday.
- While the situation may be welcome news for employers, some talent management struggles remain. Workday found that voluntary turnover of “high-potential employees” is up in three-quarters of industries tracked, with turnover particularly high in the communications, media and technology; education; and nonprofit sectors.
- “The job market is shifting to favor employers, but, at the same time, workers are getting more confident in what they want — competitive pay, clear growth paths, and meaningful work,” said Ashley Goldsmith, chief people officer at Workday, in a news release. “It’s up to leaders to help employees find meaning in their work in order to retain the high performing people who drive their organization’s success.”
Dive Insight:
Workday’s report highlights an HR problem that may appear paradoxical on its face: While hiring managers are “receiving a flood of applications,” the company said, they are simultaneously struggling to keep top performers in their roles.
Why? Because both hiring managers and talent have raised their standards, the survey and past data have revealed. Seventy-two percent of leaders raised the bar for qualifications and experience, Workday said — a trend that “shows no signs of slowing down.” But, despite the more challenging hiring environment, top talent is still looking for better opportunities at a higher rate than in late 2023.
“Meaningful work is non-negotiable,” Phil Willburn, vice president of people analytics, insights and experiences at Workday, wrote in an analysis of the data. Employees “aren’t just looking for a paycheck,” he emphasized, noting that workers who find their work meaningful feel 37% more accomplished than those who don’t.
The key factors motivating employees to stay in their roles include their growth, belief in a clear strategy and fair compensation, according to Workday, which found that 45% of industries saw a decrease in overall engagement. Internal mobility presents an opportunity for a “win-win” situation, Willburn wrote, as the strategy “not only boosts employee satisfaction, but it also helps you retain valuable skills and knowledge.”
Willburn also suggested employer remove unnecessary workplace barriers that prevent good work, including “useless meetings, cumbersome processes, and limited autonomy.”