“The Great Stay” is the newest workforce trend that highlights a shift towards employees staying in their current roles instead of switching positions within a short time period, resulting in higher retention rates for businesses. In this article, our experts at Dahl Consulting share more about what is driving this trend, the pros and cons for businesses, and actionable strategies to help your organization thrive during The Great Stay.
What is The Great Stay?
The Great Stay refers to the emerging trend where employees are choosing to remain with their current employers for longer periods of time, rather than frequently switching jobs. As of September of 2024, quit rates are sitting at a measly 1.9%. Compared to peak periods during the Great Resignation, where 400 million workers were quitting per month, this is a significant shift.
Previously, employees moved from one company to another in search of better opportunities, higher pay, or personal fulfillment. The switch to staying put is being observed across various industries and is reshaping how organizations approach employee retention and engagement. Instead of constantly recruiting new talent, businesses are now focusing on creating environments that encourage long-term employment.
The Factors Driving This Trend
Several factors are contributing to The Great Stay. First, the economic uncertainty during the past year has made employees more cautious about changing jobs. The stability and security of a long-term position has become more attractive in comparison to the risks of taking a new position and potentially facing a layoff.
Additionally, market instability has caused businesses in many cases to tighten budgets and slow down hiring. This can result in less attractive hiring packages or working arrangements that would not be as enticing to new talent, or companies opting to not hire at all. Therefore, it makes more sense for those who are currently employed to remain at their current company.
Another factor is that since The Great Resignation in 2021-2022, many companies have implemented benefits and work arrangements that cause greater employee satisfaction and better retention rates. Companies that changed during and after The Great Resignation have increasingly invested in strategies that promote employee engagement and development. Initiatives such as flexible working conditions, career advancement opportunities, and competitive benefits are making employees feel more valued and satisfied in their current roles.
The Pros: How The Great Stay Benefits Businesses
The Great Stay offers several advantages for businesses, fostering growth, innovation, and stability. Long-term employees bring a wealth of experience and institutional knowledge that enhances productivity and creativity. Their deep understanding of company processes and culture leads to a more effective and efficient workplace. Additionally, their familiarity with organizational dynamics equips them to identify inefficiencies and propose innovative solutions that drive businesses forward, creating a culture of continuous improvement.
In addition to this, reducing turnover can lead to significant cost savings. The expenses associated with recruiting, hiring, and training new employees are substantial, ranging from $4,000 to $20,000, not including salary and benefits costs. Industries like healthcare, engineering, and technology experience even higher costs due to the specialized skills required and the challenges of sourcing talent. For example, replacing a skilled frontline worker in manufacturing can cost up to 30% of their annual salary when factoring in lost productivity, overtime for existing staff, and training costs for new hires. These disruptions can slow operations, especially in environments requiring specialized skills. Retaining staff enables businesses to reallocate these funds toward strategic growth initiatives, increasing their competitive edge.
Lastly, long-term employees often exhibit higher levels of loyalty and engagement. This can translate into better customer service, stronger team dynamics, and higher productivity. In fact, Gallup reports that engaged employees improve company profits by 21% and are 17% more productive than their disengaged counterparts. Plus, when employees are more engaged, this leads to a more positive workplace culture. This sense of stability and mutual respect contributes to a more harmonious and thriving work environment.
The Cons: Challenges and Considerations for Employers
While The Great Stay brings numerous advantages, it also presents challenges for employers. One critical issue is the potential for complacency among long-term employees. Without fresh challenges and opportunities for personal and professional growth, even the most loyal employees risk becoming disengaged. Research shows that lack of career advancement opportunities remains a significant driver of employee dissatisfaction, with one in five employees leaving jobs due to stagnant growth prospects in 2024.
Maintaining a competitive edge in the talent market is another challenge for employers. While retention is crucial, it is important that companies do not overlook the importance of recruiting new talent. Attracting employees with diverse skills and perspectives is essential to fostering innovation and staying competitive. Similarly, it is important to provide learning and development opportunities for your existing workforce in order to maximize retention. According to recent trends, 28.6% of employees indicated they would remain with their employer if they were provided with clear career development opportunities. Companies that offer a clear-cut plan for employee growth and development ensure employees are not only in tune with industry trends but also remain engaged.
Lastly, fostering an innovative culture that balances the contributions of seasoned employees with the insights of new talent is key to overcoming these challenges. By focusing on transparent communication, trust-building, and opportunities for flexible work arrangements, employers can create a more dynamic and adaptable workplace
Actionable Strategies to Foster Long-Term Employee Retention
To capitalize on The Great Stay, businesses should implement strategies that foster long-term employee retention to create a supportive and inclusive workplace culture.
Here are some actionable strategies your business may consider:
- Offer Competitive Compensation and Benefits: Regularly review pay scales and benefits to ensure they align with industry standards. Including bonuses, raises, or unique perks could help reward and retain employees.
- Work Toward a Supportive Workplace Culture: Explore ways to build inclusivity and collaboration within teams. Recognizing and celebrating achievements can also reinforce a sense of value among employees.
- Provide Opportunities for Professional Development: Think about offering access to training programs, certifications, or mentorship opportunities. Clear career growth pathways may help keep employees engaged and motivated.
- Encourage Open Communication: Creating regular opportunities for feedback, such as surveys or check-ins, can help employees feel heard. Addressing concerns transparently may strengthen trust and satisfaction.
- Promote Work-Life Balance: Flexible work arrangements, additional PTO, or hybrid schedules might support employees’ need for balance. Small initiatives, like flexible hours, can also have a big impact.
- Explore Well-Being Initiatives: Programs such as stress management workshops or fitness classes could contribute to a positive work environment. Providing mental health support is another way your organization may consider prioritizing employee well-being.
By combining these strategies, businesses can create an environment where long-term employees thrive, improving retention, and boosting overall organizational success.
Embracing the Era of The Great Stay
Ultimately, The Great Stay is a new opportunity for businesses to redefine success, not just in terms of productivity and profits, but by creating workplaces where employees feel valued, fulfilled, and eager to contribute. At Dahl Consulting, we understand the importance of employee retention and company culture. If you’re seeking great talent and customized workforce solutions, get connected with our team today!