The Great Resignation could become the Great Retention as turnover plummets

As job openings have declined this year, from 10.6 million in January to 10.1 million in April, quit rates have simultaneously dropped. April’s quit rate of 2.4% was close to February 2020’s 2.3%—the final month before lockdowns began in March of that year.

ADP chief talent officer Jay Caldwell says what hints at the possible shift from the Great Resignation to the Great Retention are the dramatic swings in quit rates since the pandemic started, which used to be a stable economic metric. 

Caldwell attributes the latest downswing in quit rates to the economic uncertainty that has made people more hesitant to switch jobs. Workers fear that if they start a new job during a recession, they could get laid off as part of a “last in, first out” policy. 

Another factor, according to Caldwell, is that many workers who were interested in finding a new job likely already did and aren’t on the job hunt anymore. 

Even though employees are staying put, that doesn’t mean companies should ease up on their retention efforts. As CHRO Daily reported earlier this month, workers less interested in moving to a new company are more likely to view their employer favorably. But any increase in job satisfaction is often borne of a “beggars can’t be choosers” mentality rather than one of genuine fulfillment.

For Caldwell, career growth is the number one thing companies should offer their employees during the Big Stay. In an ADP survey of global workers, 40% said career progression is the most important thing to them at work, and 23% specifically cited training and development as their top priority. 

“If someone joins your organization and they’re not growing and developing, they’re not going to stay for the pay alone because what you start to see then is career stagnation,” Caldwell says. 

Interestingly, when it comes to career growth, employees relish trying something new rather than adding responsibilities to their current roles. Employees also want to know the company’s business priorities in order to align their skills-building with their employer’s future objectives.

“What companies can do a lot better is share more about their needs, where they’re going as an organization, and what are going to be the most critical three or four skills in that space three or four years from now,” Caldwell says.

Paolo Confino
paolo.confino@fortune.com
@paolo1000_

Reporter's Notebook

The most compelling data, quotes, and insights from the field.

Job openings in the U.S. rose to 10.1 million last month after dropping in March, complicating the Fed’s plans to fight inflation. 

“Fed Chair Jerome Powell was hoping to see the job market cool—and relieve pressure on companies to raise wages and prices—relatively painlessly with employers trimming job openings rather than laying off workers; Wednesday’s report was a setback for that scenario.” —Associated Press

Around the Table

A round-up of the most important HR headlines, studies, podcasts, and long-reads.

- Right-wing activists plan to boycott Chick-fil-A over its decision to hire a diversity chief. Daily Beast

- Goldman Sachs is considering another round of job cuts after laying off 3,200 employees in January. Bloomberg

- Amazon’s corporate and frontline employees are united in opposition to its recent return-to-office mandate. New York Times

- Workplaces integrated the diversity industry so quickly that they failed to perform proper due diligence. The Atlantic

Watercooler

Everything you need to know from Fortune.

‘Deepest humanity.’Leading with empathy is now a non-negotiable skill needed to become a CEO. “Authenticity, humility, being more fully human—they’re ironically showing up for many leaders as a strength, not a weakness.” —Geoff Colvin

Amazon walkout. Corporate employees at Amazon staged a walkout on Wednesday over the company’s return-to-office mandate. —Ed Komenda

Skills shortage. The skills gap is so deep that it could become a permanent issue like the ongoing labor shortage, says LinkedIn’s chief operating officer. —Jane Thier

Crypto cuts. Crypto exchange Binance is reportedly laying off about 20% of its company, roughly 8,000 employees. —Leo Schwartz

Expensive and detested. Commuting is now $2,000 more expensive than before the pandemic, according to a survey from housing website Clever. —Chloe Berger