‘Job hugging’ instead of mobility: employees opt for job security
The economic slowdown, rising unemployment (6.1% in February) and a 7% year-on-year decline in job vacancies are reinforcing the trend of ‘job hugging’, namely employees favouring stability of employment over changing employer. As many as 22% of employees declare that they would not consider leaving, even if another company offered them a higher salary. The result of this is an apparent stability of employment, accompanied by a decline in employee engagement.
The data shows that financial security remains the key factor for building genuine employee loyalty (53.4%), while work-life balance (46.6%) and flexible working arrangements (38.2%) are becoming increasingly important. This trend may affect employers’ strategies, because – in the context of the demographic decline – businesses will need to compete not only on salaries, but also on the quality of the working environment and degree of employee engagement.