Changing values in the job market 2023
The beginning of the year is always a time for reflection and it is therefore not surprising that many people also consider whether their current job or employer still suits them. In today’s blog post, I summarize a few interesting facts from a Europe-wide HR study on changing core values of employees. This will give you a good feeling of where you stand compared to others – even when you are thinking about re-entering the job market, these facts are very helpful to get a feeling for the new value construct of the job market 2023.
What are HR departments in European companies dealing with right now?
Since March 2020, profound changes in the world of work and in labor markets can be observed throughout Europe. This was triggered by the pandemic.
And as labor markets have changed, so have the priorities of employees: The rigid 9-to-5 model was suddenly obsolete, and employees
rethought their professional and private values.
The term “the great re-evaluation” or “the great resignation” has become established for this. I have written about this phenomenon on the blog before.
Currently, 62% of European employers are having difficulty filling their positions with qualified professionals. At the same time, employees are much more open to changing jobs.
Hiring new employees is more challenging, time-consuming and expensive than ever: given this, small and medium-sized companies simply cannot afford to lose talented employees. So it is becoming increasingly important for employers to focus on employee retention measures. So in summary, a very interesting climate to join again after a longer career break!
A great willingness to change throughout Europe
According to the Europe-wide Personio study, almost one in two employees are currently considering changing jobs. “Our latest data shows that a full 46% of employees in European SMEs plan to look for a new job in the next 12 months.”
While some companies are returning to more conventional ways of working, many have chosen to maintain remote or hybrid working as the new norm. However, this does not automatically help employees become more loyal to their employers. As the study concludes: “According to our survey, however, the willingness to switch is higher among those who have worked from home in the past year. Employees who have been at an external workplace at least some of the time, or even continuously, are less likely to say they want to change jobs. The reason for this could be that remote workers are less loyal to their employer.”
The great change in values among employees
The pandemic has had an impact on many people’s careers, and many are dissatisfied with how their careers have developed. Nearly one-third (31%) of all workers feel they missed out on a promotion they think they were due for. Nearly a quarter (27%) of all employees think the pandemic has hindered their career.
Other factors can also lead employees to look elsewhere for career opportunities. This is especially true in a labor market where nearly half of employees (48%) believe they can easily find a new job.
So if they want to retain talented people, employers need to understand the push and pull factors that exist. Among the factors that could convince employees willing to quit to stay with the company, salary remains at the top of the list.
However, a distinction must be made here: While pay can be an incentive to stay, salary is not necessarily what makes employees leave.
The most important reasons why employees leave European SMEs are a lack of appreciation for the work they have done and a lack of opportunities for professional development. These are the critical areas that HR (and colleagues in management) need to look at if they want to retain their employees.
I hope you found this blog post helpful for your current situation. Let me know if I can be of any help! I offer the opportunity for free 1:1 discovery calls to discuss your situation and I also offer free monthly global coffee dates where women from all around the world meet to discuss their global lifestyle decisions. You can safe your spot here.