Job hopping is nothing new. But it’s becoming increasingly common—mainly due to a tight labor market over the last several years. Over 22% of workers ages 20 and older spent a year or less at their jobs in 2022. That’s the highest percentage with a tenure that short since 2006, according to a study conducted by the Employee Benefit Research Institute. Even recession fears aren’t preventing certain segments from changing jobs. More than half of U.S. workers are considering leaving their jobs this year, based on a report from LinkedIn. The data also revealed that more Gen Z and millennial workers plan to quit their jobs than any other generation.
Gen Z and millennials are more prone to job hopping because they don’t want to settle. These individuals want to work on their own terms. While salary is important, they also value freedom, work-life balance and a purpose-driven work environment.
Until employees get their needs met, job hopping will continue for the foreseeable future. Here are some reasons why.
Inflation is making people more salary conscious
When salaries don’t keep up with inflation, anxious employees tend to hunt for higher-paying jobs. And it’s paying off. Job-hopping beat inflation for 49% of job hoppers in 2022, based on a new Federal Reserve Bank of Atlanta report. Among those who remained with their employer, only 42% got inflation-beating raises. With 40-year high inflation rates and a skyrocketing cost of living, it’s no wonder more employees are open to changing jobs.
Perceptions are changing
The days of joining a stable company, working there for 30 or 40 years and retiring with a decent pension are over. Workers don’t expect (or want) to stay with a company for their entire working lives. Job hopping is much more common—especially following the pandemic. As a result, frequent job change is less stigmatized. Recruiters recognize that younger employees are more entrepreneurial. So, when they spot a candidate with frequent job moves, they question why rather than judge them based on tenure per role.
Companies are less loyal to employees
It used to be that if you worked hard and were a dedicated employee, you’d be rewarded, promoted and taken care of. Not anymore. Instead of companies emulating organizations like Torani, which has survived 100 years without layoffs, we see the opposite. The most extensive layoffs have occurred in the tech space, with 949 companies laying off over 200,000 employees since January 2023. Even meat giant Tyson Foods eliminated about 15% of senior leadership positions and 10% of corporate roles. With mass layoffs and remote work on the rise, it’s not surprising that job hopping is becoming more prevalent.
People’s priorities have changed
The pandemic had a profound effect on people’s values and priorities. Workers want meaningful work that makes them feel truly satisfied. They also want to be seen by their organization as human beings rather than just employees. Unfortunately, 82% of workers say it’s crucial for their company to see them as people, but only 45% of employees believe their organization sees them that way, according to Gartner research. Workers also want flexibility in how, when and where they work. In response, employers are instituting return-to-office mandates. Consequently, dissatisfied workers are turning to job hopping to satisfy their needs.
Employees want career advancement
A 2022 McKinsey study noted that a lack of career development was the most common reason for quitting a job. In addition, 67% of individual contributors surveyed in an MIT Sloan Management survey said they wanted to advance their career, but 49% admitted that a lack of good advice had hurt their professional trajectory. To retain staff, employers must make opportunities and pathways visible and available to internal employees. If companies continue to ignore existing workers, they risk alienating them and making them feel that they need to look outside the organization for growth opportunities.
Make no mistake. People don’t necessarily enjoy job hopping. Most would prefer to stay with a company where they feel challenged and valued—at least for a while. Individuals job-hop, for the most part, because they think they need to. It’s time for employers to work harder to give them a reason to stay. Otherwise, companies will continue to see their best employees walk out the door to work for a competitor who does meet their needs.
Are you a woman who needs help changing careers? Download my FREE 22-page e-book: How Professional Women Can Master Career Change!
Read the full article here
