Latest news with #MattBohn
New York Post
19 hours ago
- Business
- New York Post
Workers are ‘job hugging' or clinging to their positions ‘for dear life': report
The pandemic era's 'great resignation' has morphed into desperate 'job hugging' — with workers clinging to their positions at levels not seen in nearly a decade, according to the latest data. The so-called quits rate among US workers slipped to 2.0% in June, far below the 3.0% peak of November 2021, according to the Bureau of Labor Statistics. Just 3.14 million people quit in June — down from 3.27 million in May — marking a steady return to pre-pandemic lows. By contrast, 4.5 million people quit their jobs in November 2021. Advertisement Employees are holding onto jobs 'for dear life,' consultants at Korn Ferry wrote in a report last week that was cited on Monday by CNBC. 4 Many workers are clinging to their jobs 'for dear life' as quitting plunges to the lowest level in years. kieferpix – In total, about 47.4 million Americans quit their jobs throughout 2021, setting an annual record. As of June, around 19.3 million Americans have voluntarily quit their jobs year-to-date. Advertisement 'There is this stagnation in the labor market, where the hires, quits and layoff rates are low,' Laura Ullrich, director of economic research in North America at the Indeed Hiring Lab, told CNBC. 'There's just not a lot of movement at all.' 4 The era of job hopping has given way to 'job hugging,' with employees too fearful to leave. Studio Romantic – That has led to the voluntary quits rate crashing to lows unseen since 2016, outside the first days of the COVID pandemic. Advertisement 'There's quite a bit of uncertainty in the world — economic, political, global — and I think uncertainty causes people to naturally' remain in a holding pattern, Matt Bohn, an executive search consultant at Korn Ferry, told the Comcast-owned financial news service. He compared spooked workers to skittish investors sitting on the sidelines, waiting for the right opportunity. The lack of movement comes as higher interest rates make it more costly for businesses to borrow money and expand operations. Job growth has slowed sharply in recent months, with the hiring rate plunging to its lowest level in more than a decade, excluding early pandemic days. Advertisement 4 Rising uncertainty has left many workers paralyzed about their prospects for a new role. fizkes – More CEOs now plan to shrink their workforce over the next 12 months than expand it — the first time that's happened since 2020, according to a recent survey. A Conference Board poll published this month found 34% of executives planning cuts versus just 27% expecting to hire. The dramatic shift from the great resignation to the great stay reflects a labor market that's essentially frozen solid. Workers who couldn't stop quitting two years ago now won't budge. But this death grip on current jobs carries serious risks, experts warned. Job huggers are sacrificing cash because those who switch typically command higher wages than those who stay put, Ullrich noted. 4 Young entrants and recent graduates face an especially tough time breaking into the frozen job market. Andrey Popov – Workers getting too comfortable may stagnate rather than take on additional responsibilities or learn new skills. Advertisement This impacts their marketability and career growth when the labor market eventually improves, Bohn cautioned. Employers might also decide these static workers no longer meet performance standards. It's not inherently bad to stay in a job for a long time, experts stressed, but hugging too tightly can backfire. The freeze-up also makes it harder for new entrants like recent graduates to break in. With fewer workers moving up or out, there's nowhere for them to slot in, Ullrich told CNBC.
Entrepreneur
21 hours ago
- Business
- Entrepreneur
What Is Job Hugging? The Latest Trend in Career Stagnation.
Why consultants say employees staying in one place is bad for business. Last week, consultants at consulting firm Korn Ferry asked a question that revealed a growing workplace trend. The question: "Have you noticed any colleagues leaving for a new role lately, or been asked to help someone find one elsewhere?" The answer for many people was "no," and Korn Ferry says it points to an "alarming" trend of "job hugging" — where employees feel like they are holding onto jobs "for dear life" out of fear of economic instability, rather than making bold moves in their careers. Related: How to Know If You Are Being Quietly Fired "There's quite a bit of uncertainty in the world — economic, political, global," Matt Bohn, an executive search consultant at Korn Ferry, said in an article quoted by CNBC. And that is contributing to the other side of the stagnation coin — employers hiring fewer people. According to the Federal Reserve Bank of St. Louis, the hiring rate is at its lowest point in a decade. Stagnation isn't great for employees or employers. For workers, it means diminished earnings (most job changes come with a larger salary), and for employers, it means a slowdown of fresh ideas and perspectives. In a recent sitdown on Entrepreneur's podcast, How Success Happens, founder and investor Kim Perell advises people to follow her rule of thumb: "If you're not earning and you're not learning, you've got to make a change." She says three years after working at a job, if you are not making significantly more money or gaining new skills, you owe it to yourself and your career to move on.
