Daniel Altman wrote, in a recent article in Entrepreneur, that the labour market has found a new normal — again. “After the dramatic swings of the Covid-19 pandemic, as well as a bevy of buzzwords, the market has settled into a pattern we've never seen before. If it lasts, businesses will have to think about human resources in a whole new way.”
Altman points out that first we had "The Great Resignation," then "Quiet Quitting," which was quickly followed by "Quiet Hiring." And now we're in an unprecedented situation that some economists are calling "The Great Stay." It's an unusual moment in time given how workers are holding onto their jobs and companies are holding onto their workers.
According to Altman, one reason for this lack of churn is the uncertainty that still plagues the economy. “The path of interest rates, the upcoming elections, the wars in Gaza and Ukraine and the possibility of corrections in asset markets are all on the minds of managers, workers and investors. Businesses are also concerned that if they let workers go in such a tight labor market, they'll have a hard time hiring when they need workers again. In the meantime, even expert opinions on the future of the economy aren't carrying much weight, since so many forecasters were wrong about a recession coming last year.”

So, what's a business leader to do? “The best approach is to take the labor market at face value and adjust strategy accordingly. This means thinking about new hires and existing workers as partners for the long term. Here are some ways to do it.”
1. Plan recruiting efforts to account for lower attrition. Workers are holding onto their jobs for longer. In the Bureau of Labor Statistics' most recent figures, the median job tenure of American workers had bottomed out at 4.1 years after a long decline. With fewer people walking out the door, you don't need as many walking in. But there's still stiff competition for the best hires.
2. Invest more in training. The longer workers stay with you, the more benefits you receive when they pick up knowledge and skills. To reap these benefits over the longest period of time, you have to start investing in training as early as possible, You can be savvy about the types of training you offer, too; boosting workers' ability to use equipment, software and processes that are unique to your business raises their value to you but doesn't necessarily make them more likely to change jobs.
3. Shift the mix of benefits. Helping employees to build their human capital through subsidies for education also makes them more valuable. Investing in workers also means keeping them healthy and happy. Comprehensive medical benefits including exercise programs, mental health services and wellness care can make a big difference, as can free healthy meals and paid time off. Businesses that offer support for growing families, such as paid parental leave, are also more likely to hold onto workers for longer.
4. Structure incentives differently for retention. Laddering incentives can encourage workers to stay longer. For example, if a worker's bonus for staying two years was 50% more than the bonus for staying one year, then the worker might be more likely to hang around rather than start from the bottom rung at another business.
5. Explore long-term options in all areas. There are also big benefits from commitment and consistency among temporary and flexible workers. Reducing turnover and deepening experience in these groups can raise productivity. Matching these workers with businesses looking for long-term staffing — in all of its forms — is a critical task in the current labor market. It's also one that will have benefits far into the future, as workers deepen their skills and receive steadier incomes via more committed relationships with businesses.
For more check out The Era of Quiet Quitting Is Over. Here's How to Take Advantage. | Entrepreneur.