"Faced with uncertainty, workers are staying in their jobs even if they would prefer to hand in their notices tomorrow. This isn't a new trend, as the job market has always ebbed and flowed, but "a sense of global events as unpredictable and unprecedented, combined with looming AI disruption, is making workers increasingly unsure," according to Korn Ferry. As a result, workers are holding on tight to their jobs and the security of their pay packet - or 'job-hugging', as the management consulting firm puts it."
"It's a reversal of the Great Resignation that occurred in 2021 and 2022 when employee turnover rose sharply as workers quit en masse and were confident about quickly securing new jobs, says Emma Collingwood, chief people officer at real-time payments platform Volt. "We are now beginning to see the opposite happen, largely due to macroeconomic factors," Collingwood says. "It's harder to move roles.""
Perceived probability of finding a new job fell to 44.9% in August, the lowest since surveys began in June 2013. Uncertainty and looming AI disruption have prompted workers to remain in roles despite wanting to quit, producing widespread 'job-hugging'. Nearly half of Gen Z tech workers express concern about AI's impact on job security. The trend reverses the 2021–22 Great Resignation as macroeconomic conditions make role changes harder. Job-hugging reduces turnover costs but risks lower productivity if employees are mentally checked out. Leaders should measure engagement, for example through pulse surveys, to identify and address disengagement drivers.
Read at IT Pro
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