Hiring is down, so is turnover: What this means for talent
Job market movements worldwide appeared to have slowed down in June – with both hiring and turnover continuing their downward trend, new data showed.
The number of new hires globally has declined by 17% compared to June 2023. Meanwhile, turnover – whether the staff departure was voluntary or involuntary – has fallen 31% year on year, according to the monthly BambooHR Workforce Insights report.
After the Great Resignation, the Big Stay phenomenon
The slowdown in job moves evident since last year suggests that the phenomenon – known as the ‘Big Stay’ – is convincing workers to remain in their current employment amid volatility in the overall job market. The Big Stay is in contrast to the ‘Great Resignation’ seen two years prior, in which people switched jobs or careers in droves in the aftermath of the COVID pandemic.
“[The Big Stay] is marked by a significant reduction in staff turnover and a stabilisation of staffing levels, as organisations focus on retaining and developing their existing workforce amidst a less dynamic recruitment landscape,” BambooHR analysts said, citing data from the CIPD.
Read More: Know your worth – how to raise your job market value
Fewer job opportunities opening worldwide?
Despite an overall decrease in hiring and turnover, employers worldwide are showing a 5% increase in job openings YoY.
However, between May and June 2024, the changes appear minimal. For example, job openings in Asia Pacific were at 0.7% and those in Middle East and Africa at 0.8%. Meanwhile, Latin America had the lowest number of vacancies at 0.5%. All this suggests that the Big Stay phenomenon is happening globally and isn’t specific to any one region or country, BambooHR said.
With a decline in recruitment activity and fewer workers departing from their current organisations, there may be slimmer chances for jobseekers to find placement under these market conditions.
Last month, the travel/hospitality industry maintained its lead in hiring, a trend observed since March. Meanwhile, the tech industry recorded the lowest hiring rate.
Notably, the travel/hospitality and restaurant/food & beverage industries were the only sectors to see an uptrend in job openings from May to June, rising by 11% and 5%, respectively.
Read More: Businesses gear up to offer more employment opportunities
Midyear reviews in full swing amid changes in feedback systems
Fewer employers conducted midyear reviews, compared to June 2023. The total number of reviews is down 18%.
“Globally, there was a 9% decrease in manager reviews but a more significant 19% decrease in peer reviews,” the researchers said. “This disparity suggests a shifting dynamic in how performance and contributions are being assessed within companies.”
The decline is likely due to the impact of resource constraints or a shift in feedback culture, the study suggests. For example, the focus on hybrid/remote work in the past 12 months may have limited workers’ opportunity to offer peer reviews.
Read More: Bosses want staff back to the office
“This reduction in peer reviews could affect the quality of feedback and employee morale,” the researchers said.
And this, in turn, could impact employee development and engagement.
Commenting on this month’s findings, Anita Grantham, Head of HR at BambooHR, urged other people leaders not to lose sight of the value of peer reviews regardless of their flexible work arrangements.
“HR professionals can adapt to the changing landscape of performance reviews by exploring innovative ways to incorporate peer feedback, especially in remote work environments,” Grantham said. “Encouraging regular communication and collaboration among team members can help maintain the valuable multidimensional perspective that peer reviews offer.”