The age of significant workplace alienation has arrived. Following the “Great Resignation,” a new phenomenon known as the “Great Detachment” is now affecting American workplaces.
Previously, during the surge of resignations, those eager to seize opportunities and secure better positions are now compelled to reassess their choices due to challenges like a tightening market and inflation, leading to increased feelings of alienation from their jobs.
The root of this growing alienation can be traced to qualitative shifts in the job market. Recent data indicates that a larger percentage of American workers are choosing to stay in their current positions. An April survey conducted by human resources consulting firm Robert Half revealed that 35% of American adults plan to seek new employment in the latter half of the year, a drop of 14 percentage points from the previous year.
Declining Salary Increases from Job-Hopping
Fewer Job Openings and Lengthier Job Searches
The decline in salary increments for those switching jobs is a critical factor. Data from the Federal Reserve Bank of Atlanta indicates that two years ago, median raises for job changers and long-term employees were 8.5% and 5.9%, respectively. Now, those figures are at 5.2% and 4.5%, showcasing a significant narrowing of the gap.
Additionally, there are fewer job openings available and it takes longer to secure a position. Bloomberg noted that the number of job openings in May was down by one-third compared to the peak of 12 million in 2022; job search durations have increased from one to two months in 2021-2022 to between three and five months currently.
There are various indications that the swift recovery of the labor market post-pandemic has concluded, meaning employers no longer feel compelled to exert significant effort in talent retention. Headhunting consultant Kelly Bonn emphasized that employers are likely to raise their expectations for employees, but those currently employed will be more hesitant to leave their stable jobs for new prospects, as they do not want to risk losing their positions.
Ben Wigert, the research director of Gallup’s workplace management practice, shared with “Fortune” that this situation could exacerbate the issues for employees who have lost enthusiasm for their work. Younger employees are particularly inclined to seek new opportunities, either due to job dissatisfaction or a desire for greater impact early in their careers.
If You Haven’t Resigned, You Haven’t Found an Opportunity Yet.
If You Have High Expectations for Work, You Would Prefer to “Wait Before Leaping”
In essence, these individuals, when at work, will contemplate leaving their current positions. However, due to market constraints, they may find no viable options. Thus, they continue performing their jobs daily, further weakening their relationships with their employers and contributing to the “Great Wave of Alienation.”
The Great Alienation Wave parallels the “quiet resignation” trend observed previously in workplaces. However, post-pandemic and amidst the mass resignations, conditions in the job market have become relatively favorable for employees, raising their work expectations and prompting them to adopt a strategy of waiting before leaping in the face of growing alienation.
For instance, Colleen Holleran, a search engine optimization analyst from New York, originally earned less than $50,000 (approximately NT$1.62 million). After starting her current role two years ago, she secured a remarkable salary increase of 66%. She was promoted to senior analyst last year, receiving nearly a 25% salary boost, with expectations for further significant increases this year.
Although she acknowledges that she is not actively seeking job-hopping opportunities and that her current job’s salary, flexibility, learning, and development meet her needs, she expressed to the “Wall Street Journal” her concern about her company’s small size, stating that if a new job with a salary 50% higher than her current pay arises, she would consider leaving.
In light of this, what strategies can companies implement to turn the situation around?
New research from Gallup indicates that all forms of boredom are preventable. Corey Tatel, a participant in the study, recommended that supervisors engage in regular, meaningful two-way conversations with employees to enhance engagement and improve retention.
(Author: Chen Yusheng; This article is published by Business Weekly with permission; image source: Shutterstock)
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The era of great alienation in the workplace is here. Following the “Great Resignation Wave,” a new wave of “Great Detachment” is sweeping the American workplace. In the past, during the great wave of resignations, people who wanted to strike while the iron was hot and find a better job are now forced to look forward and backward due to risks such as market tightening and inflation, becoming more alienated from the workplace.
The Underlying Causes of Great Alienation in the Workplace
The source of the great alienation trend stems from qualitative changes in the job market. Recent data indicates a shift in workers’ mindsets, with a growing proportion of American employees willing to stay put. An April poll by human resources consultant Robert Half revealed that only 35% of American adults plan to seek new employment in the second half of the year, a 14-percentage-point decrease from last year.
Job-Hopping Salary Increases Are Declining
One of the significant reasons for this trend is the noticeable decline in salary increases associated with job-hopping. According to data from the Federal Reserve Bank of Atlanta, the median salary increase for those who change jobs was 8.5% two years ago, compared to just 5.2% today. In comparison, those who remain with their jobs have seen a decrease from 5.9% to only 4.5% in salary increments.
Fewer Job Openings and Lengthier Search Times
The current labor market also presents challenges, as there are fewer job openings available. A report from Bloomberg established that the number of job openings in May this year dropped by one-third from its peak of 12 million in 2022. Furthermore, the average job search duration has increased from one to two months during 2021 to 2022 to a more extended period of three to five months today.
Employee Sentiment and Job Security
The rapid recovery of the labor market post-pandemic has created an environment where employers experience less pressure to retain talent. Headhunting consultant Kelly Bonn noted that companies are likely to impose higher expectations on employees, leading those currently employed to tread cautiously regarding potential job changes. This cautious mindset may stem from an overarching fear of job loss in a less favorable market.
Younger Employees at Greater Risk of Alienation
Gallup’s research director, Ben Wigert, observed that this landscape poses unique challenges for employees who have lost enthusiasm for their current roles. Younger employees seem more inclined to seek new opportunities, stemming from dissatisfaction with their current jobs or a desire for early career advancement.
The “Squat First, Jump Later” Phenomenon
The saying, “If you haven’t resigned, you haven’t found an opportunity yet,” encapsulates the current mindset in the workforce. Employees who have high expectations of their jobs often prefer to ‘squat first and then jump,’ so to speak. This mentality reflects a situation wherein individuals remain in their roles while contemplating potential exits but face job market restrictions that delay them from pursuing new opportunities.
Example of Job Growth and Salary Increases
Colleen Holleran, an SEO analyst from New York State, provides a firsthand account that illustrates this trend. Initially earning less than $50,000, she secured her current role two years ago, where she experienced a remarkable 66% salary increase, followed by a 25% raise when promoted to a senior analyst last year. Despite being satisfied with her current role, she admits that if a new opportunity arose that offered a salary increase of 50% or more, she would reconsider her position.
Strategies for Companies to Mitigate Great Alienation
To counteract the trend of great alienation, companies can implement several strategies:
- Regular Engagement: Establish regular, meaningful two-way conversations between supervisors and employees to foster engagement and retention.
- Career Development Opportunities: Provide avenues for professional growth and advancement within the organization.
- Flexible Work Arrangements: Consider implementing flexible working hours or hybrid work models to accommodate employees’ needs.
Further Reading
(Author: Chen Yusheng; This article is published by Business Weekly. Reprinted with permission; source of first image: Shutterstock)
Final Thoughts on Navigating the Great Alienation
Understanding and addressing the implications of the Great Alienation Wave can significantly enhance organizational culture and employee satisfaction. As employees become more discerning, their expectations will shape the future of work. Companies that proactively adapt to this new climate will not only retain talent but also thrive in an evolving marketplace.
