Economic uncertainty is not slowing US quit rate

In the past, the fear of an economic downturn would be reason enough to stick with a job. Many could assume that the looming recession would be the swift end to the trend of the ‘Great Resignation’.

However, new data from the hiring software company Greenhouse suggests that workers are actually not dissuaded from leaving their jobs, despite the upcoming economic downturn.

This puts more pressure on organizations and their HR departments to take better care of their employees to prevent increased attrition rates.

In a survey of over 1,500 workers in the US, Greenhouse discovered that almost 60% of employees would consider leaving their companies if they reduced benefits and the flexibility to work from home. Clearly employees value the flexibility of the hybrid workplace enough to risk a period of unemployment for a more flexible job. 

Employees know a recession is imminent

Workers surveyed by Greenhouse are not clueless, instead they are fully aware of the incoming recession. Greenhouse reports that 70% believe that they will experience a recession within six months or less.

Similarly, over half of the employees surveyed asserted that they expect their wages to fall during the recession, keeping in mind an optimistic outlook on the fluidity of the labor market. 

Despite the optimism, employees are unafraid to leave their jobs. More than 86% of employees said that they would reconsider their loyalty to their organization if the company hid its growth, implemented hiring freezes, or made layoffs. Additionally, more than half of respondents expect companies to engage with a wave of layoffs. 

Daniel Chait, CEO & Co-founder of Greenhouse noted: “While reducing the workforce may be an appropriate strategy in some situations, companies will need to take a more considered and long-term approach to talent and operations.”

How Should Companies Respond?

Given employees are unafraid of leaving their jobs during a recession, employers who want to retain their talent should note what their workers want. Benefits, flexible work environments, career development opportunities and empathy are essential to reducing worker attrition in the wake of the ‘Great Resignation’. 

Chait tells UNLEASH: “Nobody knows when a recession will come or how long it will last.

“Whatever happens, the ‘Great Resignation’ will not be derailed when 70% of candidates’ optimism towards the job market remains strong.

“Talent has prioritized what’s important and is exercising more choice and control over where and how they work.”

Ultimately, Greenhouse’s data show that investing in HR should remain a high priority to employers, as the economic downturn will not prevent the continuous wave of the ‘Great Resignation’. 

Chait added, “People-first companies that listen to and prioritize what workers want will be the ones to win top talent in an ever-competitive market.”