The Invisible Revolution and new priorities regarding talent
The “Great Resignation” is a term coined in 2021 to refer to a global cultural phenomenon that had been brewing long before the pandemic and characterized by a change in people’s mentality regarding a myriad of issues, particularly work/life balance.
This cultural movement impacted the labor market, and companies suffered from high employee turnover. While the turnover associated with the “Great Resignation” was expected to gradually stabilize, statistics show that this phenomenon is continuing in 2023, and is even on the rise.
The work-life equation is a priority in today’s world of work. Combining salary, career development and flexibility has become the winning formula for attracting and retaining talent
According to Global Talent Trends 2023, a study conducted by recruitment firm PageGroup, 9 % of people worldwide changed jobs in 2019. This number has grown over the last few years; 12 % in 2020, 19 % in 2022 and reaching 30 % in 2022, triple the pre-pandemic percentage.
The increasing talent turnover serves as a wake-up call for companies to respond to labor market transformations, as individuals are re-evaluating the significance of work in their lives.
Invisible Revolution: The next era of work
The “Invisible Revolution” is already underway. It is the most significant shift in work culture in a generation. This transformation is characterized by increased mobility in the talent market, a phenomenon that has been gaining momentum since the onset of the pandemic.
The defining factors of this juncture in the world of work are:
- A radical revolution in work culture. People’s priorities have changed and are no longer concerned primarily about salary, fringe benefits or career development. Work-life balance and personal wellbeing have taken on a new importance. Currently, 44 % of the workforce would be willing to turn down a promotion if they believed it would have a negative effect on their wellbeing.
- A change in the dynamics of company loyalty. This shift has led to a new concept of loyalty, one that is not necessarily linked to a long-term commitment to a single company. Employees are increasingly open to exploring new opportunities regardless of how long they have been with their current company. Currently, 90 % of people who started a new job in the last year are open to new job opportunities.
- The approach taken by companies to prioritize new talent. Accordingly, companies have the opportunity to gain a competitive advantage by personalizing their employee value propositions to reflect individual priorities. This approach can make a big difference when it comes to hiring new staff or retaining existing talent.
In this context, high turnover will be a permanent threat for companies, highlighting the crucial moment they face in strengthening their employer brand and addressing the challenges posed by talent mobility.
The life-work equation
The trends reflect employees’ preferences, which encompass multiple priorities. It’s crucial for employers to recognize that these priorities are not mutually exclusive but rather essential and interconnected aspects that must be addressed simultaneously.
The life-work equation can be defined by the following three elements:
- Salary. It is strongly recommended to review current employee salaries as soon as possible, with priority given to high-value talent. Today we know that 84 % of people will not ask for a raise before resigning, they will simply look for an option that better suits. It is critical to not minimize the importance employees place on salary and avoid attempting to compensate with other benefits.
- Career progression. Professional development must be transparent and integrated into a company’s culture and authentically lived in an employee’s day-to-day experience. Today, 36 % of candidates prioritize working for a company that invests in their professional development, meaning employers must clearly define and be transparent about the possibility of career development.
- Flexibility. 70 % of employees value flexible working hours and 78 % value hybrid work arrangements. Companies that shift their mindset from merely tolerating flexibility to actively embracing it as a sound business strategy will experience significantly higher retention rates. Flexible and adaptable policies that focus on the individual will have a better chance of limiting talent mobility.
Ultimately, changes brought about by the “Invisible Revolution” pose a challenge for talent management specialists and companies in a highly mobile labor market. However, this juncture also represents a great opportunity to develop a solid employer brand, which through empathy and understanding of new priorities, can adjust its attractiveness and retention strategies in this new era of labor.