Labor Market Trends for Talent Retention

70% of U.S. tech workers are staying put in 2025. If you manage a Workday team, that number should both comfort you... and make you nervous. Because the reasons they’re staying aren’t the reasons you might expect. According to Robert Half's 2025 Employee Retention Survey, the top two reasons are clear: 1) Flexibility (Where, when, and how they work) 2) Their manager (Trust, support, and leadership quality) This figure is about 10% higher than when we measured it at this point last year in the 2024/25 Corner Office Consultants Workday Compensation & Market Guide. It also aligns with other workplace research we are seeing: → 83% of U.S. employees say work–life balance matters more than salary. → Only 33% of companies require full-time in-office work; 43% have adopted structured hybrid models. → 80% of employees would stay if they trust their manager, even during financial uncertainty. For the 30% who are looking to move this year, the top reasons are: 1) Better Benefits (45%) 2) Career Advancement (43%) 3) Higher Compensation (42%) Notable: Benefits have overtaken compensation at the top of the list a shift not seen in years. In our past compensation surveys, Compensation almost always ranked in the top two reasons for leaving. So, what this means for retention and hiring in the Workday ecosystem: 1️⃣ Flexibility is currency. Now isn’t the time to roll back hybrid or remote options for your Workday teams. 2️⃣ Managers are your retention engine. In many RIFs, the management layer is first to go. But in Workday environments, managers often hold projects, teams, or client relationships together. Lose the wrong one, and retention across your team can unravel. 3️⃣ Hiring requires agility. Static job descriptions aren’t going to cut it. Workday professionals are weighing flexibility, benefits, and career growth more heavily and your hiring approach should reflect that. One more shift worth noting: → 71% of workers say they’d consider contracting instead of a full-time role. In the Workday talent market, while not this high, it’s absolutely a trend we’re seeing. Oh, and don’t get too comfy,  the “stability” we see now won’t last. By 2026, over 50% of workers say they expect to be actively on the market. Interesting times indeed.🤔 #Workday #EmployeeRetention #WorkforceTrends #FutureofWork #TalentStrategy

The Retention Riddle: Why Loyalty Doesn't Always Pay (Literally) Question: "Have you noticed that companies are often willing to pay a 40% salary increase to hire a new employee but are unwilling to offer a 15% raise to keep a current, experienced one?" This question hits hard, doesn't it? It's a frustrating reality in many organizations: the willingness to shell out big bucks for new talent while undervaluing the experience and loyalty of existing employees. Why does this happen? >Market Pressure: Companies often feel compelled to match or exceed market rates to attract top candidates, especially in competitive industries. >Budget Silos: Hiring budgets and compensation budgets are often separate, making it easier to justify a larger salary for a new role than to increase an existing one. >Short-Term Thinking: Companies may focus on immediate needs rather than the long-term benefits of retaining experienced employees who already know the business. >Lack of Visibility: The contributions of long-term employees may be taken for granted, while the potential of a new hire is often overhyped. But here's the thing: retention is almost always more cost-effective than recruitment. Losing experienced employees means losing valuable knowledge, disrupting team dynamics, and incurring the costs of hiring and training replacements. So, what can we do to address this imbalance? >Advocate for Fair Compensation: Employees need to be proactive in understanding their market value and advocating for fair compensation. >Promote Internal Mobility: Companies should create opportunities for growth and advancement within the organization. >Recognize and Reward Loyalty: Acknowledge the contributions of long-term employees and reward them accordingly. >Focus on Employee Value Proposition: Create a workplace culture that attracts and retains talent by offering competitive compensation, meaningful work, and opportunities for growth. It's time to shift the focus from simply attracting new talent to valuing and retaining the talent we already have. What are your thoughts? Have you experienced this salary imbalance firsthand? #compensation #retention #employeeengagement #leadership #HR #salary #fairness #workplace 🤝 Let's connect --> https://lnkd.in/gRnZYyZi 📞 Let's collaborate --> https://lnkd.in/gEG83dMA

🚨𝗝𝘂𝗹𝘆 𝗷𝗼𝗯𝘀 𝗿𝗲𝗽𝗼𝗿𝘁: The labor market added 73,000 jobs last month, not a huge number and short of expectations, but enough to show there is still some growth. Unemployment went up slightly to 4.2%, yet wages are still rising at about 3.9% year‑over‑year. Where the momentum is: ✅ Health care & social assistance (+73K) ✅ Retail & finance saw steady gains ⚠️ Manufacturing & government pulled back slightly I also want to talk about Professional & Business Services, where many of you are looking for roles. While overall the sector lost 14k roles in July, there was still hiring happening in pockets: Architecture & engineering firms added about 6.7K jobs. Ad/PR agencies were up 2.8K jobs. Legal and accounting/payroll services both added 600 jobs each. Other niche consultancies and labs saw smaller but solid gains. 𝗪𝗵𝗮𝘁 𝘁𝗵𝗶𝘀 𝗺𝗲𝗮𝗻𝘀 𝗳𝗼𝗿 𝘆𝗼𝘂:   • Job seekers → Lean into growing sectors and highlight transferable skills. Also, network and demonstrate impact. Fewer job openings mean more competition. Build relationships to drive referrals, and project-based stories to showcase skills.   • Employers → Streamline hiring and focus on skill‑based recruitment. Given the tremendous talent pool out there, focus even more on culture fit.   • Leaders → Retention and internal mobility will be key in a softer market where employees want to stay put and grow. Continue to stay informed and be ready to adapt to stay well positioned for months ahead!

Partner or part ways with Tech Talent in 2025 🤝 Our latest research has uncovered a significant shift in the tech talent landscape, and it's not what you might expect: 70% of technology professionals are quietly planning their next career move. But this isn't the "Great Resignation" we've seen before - it's more nuanced. 35% are actively job hunting 35% are passive but open to opportunities Only 30% are genuinely content in their current roles 🔍 Why is this happening? After 18 months of market uncertainty, redundancies, and project freezes, technology professionals aren't just seeking better compensation - they're fundamentally reassessing what they value in an employer. The winning organisations in 2025 will be those that demonstrate: 🏅 Decision Velocity 🏅 Swift, clear hiring processes 🏅 Transparent career progression 🏅 Empowered leadership 🏅 Genuine Flexibility 🏅 True work-life integration 🏅 Results-focused approach 🏅 Trust-based working models 🏅 Embrace Innovation 🏅 AI adoption and training 🏅 Modern tech stack 🏅 Continuous learning culture 🏅 Change Leadership 🏅 Clear transformation roadmaps 🏅 Employee-led innovation 🏅 Adaptive mindset 🚫 The warning signs your organisation might be at risk: 🔴 Multiple approval layers slowing decisions 🔴 Rigid working policies 🔴 Resistance to new technologies 🔴 "This is how we've always done it" mentality The organisations that will retain top talent aren't those with the biggest budgets - they're the ones building genuine partnerships with their people. What we're seeing at the coalface: ❗ Companies taking 6+ weeks to make decisions are losing their preferred candidates. ❗ Organisations embracing AI tools are seeing higher application rates ❗ Firms with genuine flexibility are experiencing lower attrition What are you seeing? #FutureOfWork #TechTalent #Leadership #TalentRetention #WorkplaceCulture #Innovation

The "Quiet Promoting" Revolution: Why Your Best Employees Are Getting Offers While You're Not Looking I just had a conversation that stopped me in my tracks. A top performer told me: "I'm not quiet quitting... I'm quiet promoting myself." What does this mean? 🤔 While we've been focused on quiet quitting, a new trend has emerged. High performers are: ✅ Building their personal brand on company time ✅ Networking strategically during "focus hours" ✅ Skill-building through external courses and certifications ✅ Positioning themselves for opportunities elsewhere They're not disengaged. They're strategically engaged. The wake-up call? Three of our strongest contributors got external offers during the last 3 months. Not because they were unhappy, but because they made themselves irresistible to the market. Here's what this taught me: 🔹 Career development can't wait for annual reviews 🔹 We need real-time growth conversations, not annual check-ins. 🔹 Internal mobility beats external recruiting 🔹 If we're not promoting them, someone else will hire them. 🔹 Recognition needs to be immediate and visible 🔹 Skills-first thinking is non-negotiable Employees who can't grow their capabilities will grow their exit strategy. The bottom line: In 2025, employee retention isn't about keeping people comfortable—it's about keeping them growing. What are you doing to ensure that your top talent promotes themselves within your organization rather than shopping themselves to your competitors? What strategies have been most effective in retaining high performers within your organization? Let's talk about it. #HRLeadership #TalentRetention #EmployeeEngagement #CareerDevelopment #WorkplaceTrends #PeopleStrategy #HumanResources #StrategicThinking #HR #CHIEF #SHRM

Retaining top talent isn’t about throwing money at the problem. Yes, compensation matters. But in today’s market, people stay where they feel challenged, trusted, and connected to something bigger. The companies that win on retention focus on three things: - Clarity & Purpose: High performers want to know their work matters. Connect daily tasks to the mission, and people see meaning in what they do. - Flexibility & Trust: Flexibility isn’t a perk anymore, it’s the baseline. Trust employees to deliver in a way that fits their lives, and engagement follows. - Growth & Development: Top talent is ambitious. Give them stretch opportunities, mentorship, and clear career paths, and they’ll choose to grow with you. Retention doesn’t come from a single program or one-time initiative, it comes from building a culture that balances performance with humanity. As a Fractional CPO, I’ve seen firsthand how intentional leadership creates workplaces where people choose to stay. Retention isn’t a perk. It’s a culture. What’s the biggest factor that convinced you to stay with a company? #HRexpert #FractionalCPO #retention #leadership #humanresources, #careers, #management, #culture #employeeengagement

I recently heard about a highly talented and forward-thinking senior operational leader leaving their organization-for a lateral move. It made me pause. Not because change doesn't happen or because people don't seek better fits-but because this was someone who had consistently delivered value, led with purpose, and made a real difference. And it made me ask the bigger question: Why do exceptional people leave organizations? And do organizations really know what their top performers need? In customer-facing industries-like healthcare, hospitality, retail, and beyond-our people are our greatest asset. They drive the experience, the outcomes, and the innovation. Yet far too often, we invest more in acquiring talent than in retaining the incredible people we already have. To achieve sustained success, I believe organizations must understand-and act on-what top-performing employees need to stay, serve, and grow: 1. Purpose - More than a mission statement, it's about true connection to meaningful impact. High performers want to know their work contributes to something bigger. 2. Growth - Opportunities to stretch, learn, and evolve-not just in title, but in capability and influence. Growth isn't a perk-it's a driver. 3. Recognition - Not just bonuses or public praise. It's about being consulted, trusted, and celebrated in ways that feel authentic and personal. Talent acquisition is costly. Productivity loss is even more so. And new hires perform best when surrounded by experienced, stable, and engaged teams. In industries where human capital drives outcomes, investing in talent retention is not optional. It's the difference between short-term success and long-term excellence. #TalentRetention #Leadership #PeopleFirst #OrganizationalCulture #EmployeeExperience #CustomerExcellence #RetentionStrategy #FutureOfWork

I've been in the recruiting field long enough to remember when staying at a job less than 5 years was a red flag. What's changed? Employees today value growth, purpose, and flexibility more than loyalty. Additionally, the recent labor market has made switching jobs easier and more rewarding, while organizations often fail to provide the career development, culture, or leadership that keeps people engaged. We can see the result, but why is it different? Shift in Employee Expectations & Career Mindsets ➡️ 📉 Economic downturns & instability such as the 2008 financial crisis and the 2020 global pandemic taught employees not to rely on loyalty for job security. Out of necessity, companies downsized, outsourced, or automated roles, breaking the long-standing psychological contract of lifetime or long-term employment security. 🎲 Millennials and Gen Z grew up watching parents endure layoffs or unfulfilling work, so they were influenced to prioritize purpose, growth, and balance over stability. 🏆 Social platforms and information access like LinkedIn and Glassdoor normalized career changes by highlighting opportunities and reducing the stigma of short tenures, shifting the vibe from disloyalty to ambition. Market Dynamics & Job Opportunities ➡️ 🌐 The rise of remote work, digital recruitment platforms, and gig apps expanded access to jobs beyond geography and offered perks such as flexibility, autonomy and personalized experience. 🚨 Talent shortages in many industries increased competition for skilled workers, leading to aggressive recruiting and more opportunities to choose from. 🧠 With the shift toward a knowledge economy, work became more skill-based and less location-reliant so employees with in-demand expertise could easily move to higher paying and/or more flexible opportunities. Workplace Factors Driving Turnover ➡️ ✂️ Many organizations cut middle management layers with an aim to be more efficient, limiting visible career ladders which often required employees to leave in order to advance. 💢 Increased pace & pressure of work: Technology and accessibility expectations blurred work/life boundaries, leading to burnout. 👁️🗨️ Many managers were promoted for technical skill, not people leadership. Poor management quality has become more visible and less tolerated (particularly with social channels and global audiences), especially in a values-driven workforce. 🔍 Sites like Glassdoor, Comparably, and PayScale made organizational issues more visible (bad culture, low pay, lack of development) harder to hide, empowering more proactive career decision making for candidates and employees. Parting thought: The youngest wave of talent entering the workforce often gets blamed for what makes running a business more difficult, but it's important to remember, they are a product of generations before who created the environment they enter as adults.

📊 Risk is the word of the year. But are we misjudging what risk really looks like in 2025? Across the HR landscape, we’re seeing a clear trend: 🔍 Roles in Remuneration, ER, IR, Governance and Compliance are booming. This isn’t surprising. 🔺With IR reform rolling out at pace, 🔺WHS scrutiny intensifying, 🔺And Boards doubling down on ESG, legislative change and workforce governance, HR is increasingly being seen as the FRONT LINE OF RISK MANAGEMENT. Yet amid this compliance-led momentum, one critical question is being overlooked: 👉 Could the greater risk be the one walking out the door? Because while legal frameworks are tightening, we’re seeing: 📉 Voluntary turnover rising — up 13% YOY in some sectors 🔄 Rehiring costs spiking — often 2–3x the departing salary once you account for downtime, retraining, and lost IP 📉 Engagement scores stagnating in organisations that deprioritised internal mobility and DE&I strategies 🧠 Burnout and attrition climbing in high performers who feel culturally misaligned or unsupported The result? You’re compliant — but compromised. You’re risk-aware — but potentially bleeding talent and capability. ✅ In a truly risk-focused economy, talent strategy, culture, and DE&I should sit beside regulatory HR functions — not behind them. Because losing your best people isn’t just a culture issue, it’s a strategic risk. One that could have been mitigated with the same level of foresight, investment, and governance. Based on what I am picking up in the market, WE MUST expand the risk lens. Because retention, belonging, leadership, and engagement aren't “soft” metrics. They’re your business continuity plan.

"Retention Is the New Recruitment" Why keeping your people matters more than ever. If you work in HR or talent acquisition, you’ve probably heard this phrase a lot lately. But it’s not just a trend—it reflects a shift in how we need to think about building strong teams. Hiring is hard. We all know that. But keeping the great people you already have? That’s what really moves the needle. Turnover is costly—financially, yes, but also in terms of lost momentum, broken trust, and disrupted teams. And today’s employees are staying longer if they feel seen, supported, and growing. They want to feel that the work they do has purpose and meaning. Here’s what we’ve seen actually work: - Make growth real. People want more than a job—they want a future. Offering clear development paths shows them you’re in it with them and excited to invest in them! - Open doors internal movement. When you give people space to explore new roles or take on different challenges, they stay engaged—and your teams stay flexible. - Support their well-being. Flexibility, mental health, time to breathe—these are basic needs now, not “nice extras” or “nice to haves”. - Acknowledge effort & celebrate wins. A simple thank you or moment of recognition can go a long way. People don’t forget how you made them feel. - Create a culture worth staying for. One built on trust, inclusion, and shared purpose—not just money and perks. Retention isn’t a single program or policy—it’s how you show up for your teams every day. It’s the conversations you have, the choices you make, and the environment you create. We’ll always need to recruit. But the real win is building a place people want to stay and contribute to the larger mission of your organization. What’s helping your team stick around—and what are you still figuring out? I’d love to hear from others navigating the same challenges! #peoplefirst #employeeexperience #retentionstrategy #workplaceculture #ikigai