- On June 18, 2024
Once upon a time, people got up in the morning, put in a full day of work, and came home to deal with family and/or other issues. Were they happy with their jobs? Maybe – but happiness in the workplace didn’t used to be all that important. For many people, work was simply a means to an end.
Things have certainly changed over the last few years. How did we get from a time when people worked to live to where we are now? Increasingly, employers are struggling to find qualified candidates, and workers feel that their opportunities for advancement have stalled. What happened?
As we might expect, there is no shortage of opinions and theories as to what is broken and what needs to be fixed in today’s workplace. Let’s look at the data. The 2024 Career Optimism Index published by the University of Phoenix Career Institute reports:
- 20% of workers are dissatisfied with their jobs
- 42% of workers fear job loss due to economic downturns — many say they can afford less now than they could two years ago
- Over half of Americans feel they can easily be replaced, and a similar number of employers share this belief
- Despite employer claims of providing opportunities to their existing workforce, only 36% of workers see chances for internal mobility or advancement, highlighting a clear disconnect between employer and employee
Ironically, nearly half of employers surveyed reported finding talent is a challenge, while their employees cite a lack of recognition and/or growth opportunities. Are organizations missing opportunities to develop their existing workforces?
The Great Resignation was characterized by a surge in employees leaving their jobs for a variety of reasons. Contributing factors may have been changes in lifestyle due to the pandemic, the desire for work-life balance, and baby boomers deciding to leave the workforce before normal retirement age.
In a competitive talent market and a time of historically high inflation, companies are focusing on cutting expenses and often look outside the organization to drive growth, bringing in less experienced people at a lower price tag. According to Dr. John Woods, Provost and Chief Academic Officer at the University of Phoenix, that perspective perpetuates a stagnant talent environment. It creates a major disconnect between how companies view employees and how employees view themselves. This disconnect is what has brought us the Great Talent Stagnation – a time when employee career development and advancement are stuck due to an overall lack of employer support, thereby negatively impacting business outcomes. Dr. Woods goes on to point out that the lack of mentoring programs, skill development opportunities, and clear communication regarding potential career paths perpetuate a stagnant talent environment.
As the economy continues to expand, organizations are finding it more difficult to find qualified applicants for open positions – thus the transition from the Great Resignation to the Great Talent Stagnation.
So what’s the solution? According to the report, organizations must look inward and provide personalized opportunities for worker advancement. It’s no longer enough to simply provide a learning portal where employees can access various courses at their leisure. Employers must reach out to individuals and provide them specific opportunities to learn, grow, and advance internally. In other words, cultivate your internal talent before looking outside. Failure to do so may result in disengaged employees who are more inclined to search for a new role outside their current organization. This should be a call to action for employers. Backfilling a role is costly and, in many instances, can be avoided.
Addressing the Great Talent Stagnation requires a shift in perspective. Employers need to recognize the untapped potential within their existing workforce and create clearly articulated pathways for growth and skill acquisition. By doing this, they can break through stagnation and foster a more dynamic and resilient talent pool.
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