The Great Resignation generated much buzz – a time that saw employees quit en masse in the wake of the COVID-19 pandemic, unsatisfied with working conditions and low wages. Three years on, the resignation seems to have turned to stagnation.
The University of Phoenix Career Institute released its fourth annual Career Optimism Index recently, and the data reveals a shift in sentiment that could be called The Great Talent Stagnation. Workers, by and large, see little room for advancement within their companies due to employers’ preference for recruiting outside talent.
"As U.S. companies cut jobs and reduce expenses, they are fixating on the next best thing available to them outside of their organization to drive growth. This perspective is perpetuating a stagnant talent environment," said John Woods, Provost and Chief Academic Officer at the University of Phoenix.
The State Of Things
The study, conducted between Dec. 5, 2023, and Jan. 2, 2024, surveyed more than 5,000 U.S. adults who are either currently working or wish to be, and 501 U.S. employers.
More than half (53%) of Americans report feeling easily replaceable in their jobs, and 64% say their companies do not offer opportunities for internal mobility, even as 44% of employers report their biggest barrier to finding talent is a lack of qualified applicants.
After a year of layoffs and strikes, 42% of workers worry about losing their jobs, 38% say their pay has not kept up with inflation and 42% say they can afford less now than they could two years ago. Nearly a third of workers (30%) say they don’t feel recognized for their contributions, and 27% do not feel empowered in their current job.
Although 62% of employers say their company offers opportunities for internal mobility, only 36% of workers agree, and while 90% of employers say their company provides opportunities for career development, only 69% of workers agree.
The report shows that workers value learning new skills to stay ahead (74%) and say that if their company did more to upskill (66%) and reskill (65%) them and gave them opportunities to use new skills (69%), they would be more likely to stay.
Despite stagnation, workers are optimistic about their own abilities, with 78% hopeful about the future of their careers and 72% feeling in control of their professional future. The report’s authors say there is an opportunity for employers to capitalize on that optimism.
What Can Be Done?
By recruiting externally, employers are overlooking potential within their existing workforce to solve their business needs and creating frustration among workers.
More than half of employers say that in the past year, it took a month or more to fill a position at their company, and 44% report the top challenge was a lack of well-qualified external applicants.
Employers can benefit from closing the gaps in awareness around internal growth opportunities. Workers who are aware of opportunities for internal mobility (82%) and those who have conversations with their manager about their career path (86%) report high levels of job satisfaction.
"Our Career Optimism Index illustrates that business leaders are overlooking the immense potential of the workforce within their own organizations, who remain resilient and optimistic despite the macro environment. These workers possess a significant desire to advance and acquire the skillsets employers are seeking to fortify their businesses for the future,” Woods said.
And if the survey results were not convincing enough, the statistical modeling added to this year’s report shows the potential cost savings to employers who adjust to solve talent stagnation internally to be as much as $1.35 trillion across the U.S.
TMX contributed to this story.
Featured photo byCarl Tronders on Unsplash.
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