Last week, consultants at a leading firm asked a question that tapped into a growing workplace trend: “Have you noticed any colleagues leaving for a new role lately, or been asked to help someone find one elsewhere?” The answer for many was a resounding “no.”
This points to an “alarming” trend dubbed “job hugging,” where employees cling to their current positions out of fear of economic instability, rather than making bold career moves. This cautiousness is a two-way street; employers are also hiring fewer people. Data from the Federal Reserve Bank of St. Louis shows the hiring rate has hit its lowest point in a decade.
did you know?-The term “job hugging” emerged recently to describe this increased employee reluctance to seek new opportunities, reflecting broader economic anxieties.
“There’s quite a bit of uncertainty in the world – economic,political,global,” noted Matt Bohn,an executive search consultant. This global unease fuels workplace stagnation, which isn’t ideal for anyone. For employees,it often means diminished earning potential,as most job changes come with a salary bump. For employers, it signals a slowdown in fresh ideas and new perspectives.
Kim Perell,a founder and investor,offered a sharp piece of advice on a recent podcast: “If you’re not earning and you’re not learning,you’ve got to make a change.” She advocates for a personal career review every three years. If you’re not seeing important salary increases or gaining new skills, she argues, it’s time to explore new opportunities for your own professional growth.
Pro tip:-Regularly assess your skills and earning potential. A three-year review, as Perell suggests, can help identify stagnation and prompt proactive career planning.
The Trend: Job Hugging
Employees are holding onto their jobs “for dear life” due to economic fears, rather than pursuing career advancement through new roles.
The implications of this widespread job hugging are significant. It can lead to a workforce that feels stuck, perhaps impacting morale and innovation. The Federal Reserve bank of St.Louis’s data on declining hiring rates underscores the cautious economic climate that’s contributing to this phenomenon.
Reader question:-Is job security now prioritized over career growth? What factors are most influencing your career decisions in the current economic climate?
